Bedeman's Dunkirk spirit
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Mark Bedeman has the job of steering NFC back into Europe — a market where the company once tried and failed.
• The NFC's attempt to break into Continental Europe back in 1972 failed, but Mark Bedeman, the company's new managing director for Continental development, is determined to get it right this time.
Bedeman joined the company fresh out of Manchester University as a member of the BRS consultancy unit. He has risen to become a main board director at 29.
"It's a marvellous feature of my career and of the NFC that I've never seen the ceiling," he says. "There is always more to do. The company culture is always that we know we can do better."
He has been interested in developing the NFC outside the UK for a long time. Now, with the company's restructuring into four world-wide divisions and the creation of Exel Logistics, this interest is about to be translated into action.
He says the company still bears the scars of its failed attempt to penetrate France and Germany: 'There were financial controls and operational disciplines which made things difficult in the first place," says Bedeman.
"But there was also an unwarranted arrogance that we could buy a loss-making business on the Continent and turn it round. That almost proved to be the downfall of the NFC."
Since then the company has gained European experience through the Pickfords and Lynx operations, and alliances on the Continent. But NFC has, until now, concentrated its overseas efforts on English speaking countries, particularly the USA and Australia. Now Bedeman is involved in serious discussions with a company in Spain, and he reckons he could be able to announce an acquisition in the new year.
He is proud of the NFC's successful track record in buying companies: "We win companies," he says. "Companies want to join the family of NFC because of our management philosophy and style. We spend a lot of time making sure we have the same understanding, emotions and attitude as the companies we want to buy. We do not have an aggressive approach."
Two briefs
Bedeman's new job gives him two main briefs — to identify and win over acquisitions in the target sectors (initially Spain, Germany and France); and to build up a consultancy and business development team to explain the Exel Logistics concept to potential clients.
"The idea is that these two strands work hand-in-hand so that we build up a good resource base and streetwise knowledge of each country," he explains. He is looking for companies involved in physical distribution: "We are not diversifying from our core operation," he says. "Our skills are in the management of information and stock, and the measurement and management of quality in logistics. We are Looking for profitable, well run businesses in these areas."
Spain is top of the list for two reasons. First, although it is a large country it is a relatively small market; and second, "it is a very exciting place".
"The economy and the business community are buzzing with activity," says Bedeman. "There are tremendous changes going on there with lots of road building and construction work and the country is positively looking forward to 1992."
The French market is "more mature", but Bedeman's research "confirms there will be dramatic changes to come in the management of the supply chain". The UK system, where major retailers often use pro fessional contractors to mana the whole process, is likely b develop on the Continent, he believes.
The Exel Logistics brand name is also "very effective" Europe, says Bedeman: "Th( concept of logistics is understood, even though it is spelt differently in every country. 1 is accepted as meaning the management of the whole supply chain: the terms trans port and distribution suggest only elements of it."
The past 12 months have been spent in researching anc talking to the major banks, financial institutions and relevant institutes: "We are handling the project with grea care," Bedeman insists. "We are checking and re-checking that the concept we have of contracted logistics is relevan. — which we feel it is — and that NFC's culture and ethics, with its open, partnership bas rather than being remote and third party, is applicable — which we also believe it is.
Positive action
-We now have to move from this base of understanding to positive action. We are well down the line of preparing spt cific plans for our target coun. tries."
Language barriers will be breached in time, Bedeman bo lieves. He already had "rudimentary French" and intends to learn Spanish and German.
The company will also "research and understand" the opportunities that could be realised in Eastern Europe: "We will meet and talk with the people involved and make our judgements as to how we can enter that market in the fullness of time," Bedeman ex plains.
But for now the task in han, is to concentrate on Spain, France and Germany: "In the logistics market it looks as though there will be further rationalisation, leaving just a handful of key world-wide play ers in the field," he says. "Ou objective is to be one of those players."
0 by Barbara Millar