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Where there's a will there's a way
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TWE Haulage is a small company, yet it has been able to diversify to give its customers exactly what they want. CM finds out how its managing director and founder Trevor Edden has achieved this.
Words: Louise Coke / images Graham kicnardson
AGILITY AND ECONOMY are the cornerstones of a successful company, and TWE Haulage managing director Trevor Edden has a very particular approach to achieving both.
Edden started young with just a single van; he now has a 12-strong fleet and 21 staff— a modest outfit by some standards. Yet with this small band of people and vehicles. Edden still manages to provide customers with warehousing, pick and pack services and general haulage as well as transporting abnormal loads. He has even been depot of the year for The Pallet Network (TPN) two years on the trot. "Everything we have moved into has been as a response to customer demand," says Edden. always think where there's a will there's a way — just don't expect to make a quick buck."
Diversification, particularly for a small firm, involves high levels of investment and a sharp learning curve. "Never be afraid to ask questions and for advice," says Edden. "I'm not an intellectual man, but there's always someone you can ask.The trick is never to assume you know how to do something new — find someone who does. I always seek people out and ask how things are done, what the pitfalls are, and so on. I never move fast in business, but, equally, when we do commit to something, we never do it half-heartedly."
Customer service
Edden has a robust sense of customer service, and some of his clients have been with him for two decades as a result. "I see no reason why transport should be different to any other service — if we don't deliver what we promise, why should you pay for it? I never quote a price on the phone — it's essential to see the client, their premises and understand the business and the product. We also never over-stretch ourselves on promises — it's always better to exceed expectation than to fall short."
Edden's business may be compact, but his margins are over 5% — for the year ending January 2007, they were 5.7%. "2007-8 was at 5% and I'm optimistic that the year ending January 2009 will also be over 5%." The key to solid margins, he says, is 100% fleet utilisation. "I always have the work before I have the vehicle. I don't fill myself with TWE vehicles only to find they are standing in the yard. Working four out of five days is not a day off for the driver, it's a 20% loss. So we keep fewer vehicles than we have work and we have a team of carefully chosen subcontractors, in particular to run to Ireland and Europe. As part of TPN, I also have 79 other depots I can field work to for their regions. This enables me to keep lots of work going through but ensure that my vehicles run at 100% efficiency."
The art of working with a small team is to develop everyone's ability. Edden believes strongly in training young people. His son, Tristan, qualified on the young driver scheme just days after his 18th birthday; a 17-year-old warehouse worker is also being trained up through the ranks and a 17-year-old is being trained in the accounts department, "We'll give them all the opportunities they want," says Edden. "The training of people is of crucial importance. If you don't invest in the future, you are effectively saying you don't have a future. And because we invest in our people, they are passionate about the business."
He sees training as a key way to cut costs because you can make savings for yourself and the customer without damaging service levels. "Our priorities are simple. First, people must be safe; second, look after the customers; third, make sure you get paid on time: and, last, know your costs."
The turning point for TWE Haulage and the move that ensured its long-term future was joining The Pallet Network, Edden believes. "We were originally introduced to the concept of networks before I met TPN. We were getting the same message from every customer — great service, but could it be cheaper. We were offered the Oxfordshire work for another network and we joined. An awful experience. After that I was reluctant when TPN called us, but it was clear it was a service our customers wanted. I can't speak highly enough of TPN — the systems are good, the members are strong, and the senior management team offers help and advice."
Tough times Edden is undaunted by the recession. "Will it be tough? Yes. Will we suffer? Yes. But you have to look further than that." He is concentrating on improving the business."! have spent more time in the past six months talking to clients, going out with the managers to see every one of them and asking: "Can we do more?" I was quite shocked at how many issues there were. New products, problems that needed solving. We got a lot out of it, and! now have a better idea than ever what my customers want." •