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Man on a mission
Page 18
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With circumstances looking bleak after a merger with Target Express two years ago, City Link dug deep and is well on its way back to profit. CM finds out how fortunes have turned around at the parcel. carrier.
Words; Joanna Bourke
PROFIT TO LOSS proved to be the Jerfect summary following the merger If parcel carrier City Link with Target Express in 2007 However, rather than ;ink deeper into the red, City Link put noves in place to drag itself out of the mire. So, despite the recession rearing its igly head, the company appears to be Dn its way to getting back in the black.
CM recently visited City Link's Wednesbury, West Midlands, hub and Found sales and marketing director Stuart Godman refreshingly candid. "Since the takeover, there had been a catalogue 1 disasters. We had to stop and realise things were not working. We knew we had to rebuild and change." As a result, the company planned a three to five-year turnaround plan. Godman adds: "We are in line with our plans, and one year in to it we are making good progress. We have gone back to basics and focused on high service levels, which is bringing as back with more stability."
By way of an example, for the first quarter of the year, the group's operating loss stood at £6.1m on a £85m turnover. Although no loss is desirable, the progress of the turnaround is evident from the figures for the corresponding period in 2008, operating loss was 60% higher at /15.4m.
Quality first
Godman insists this improvement was achieved by hard work and concentrating on quality. Although each client is dealt with individually, the company is opposed to cutting rates.
"1 believe we negotiate on a win-win basis. We get paid for delivering a prompt service with limited breakages or problems," he says.
"When competitors begin cutting rates, they will be the first to compromise their service, I would think twice about that. When the market picks up, you might not have the best quality reputation for the future," he says.
Approximately 16,000 customers a week are serviced, and all clients are continually monitored, ensuring if one appears to be in trouble or at risk of becoming insolvent, then City Link is prepared for it.
The future
He continues: "We are now halfway through the second quarter and we are really pleased. Our customers are telling us this, too. Even in this difficult economic climate, they are beginning to talk about plans for the future."
All calls to the company will be decentralised by January 2010, meaning each of the 85 depots will deal with enquiries individually. A move Godman believes will yield better service: 'We've listened to our customers who told us they wanted local contact. Hopefully, this will pay oft" A pay freeze across the board until at least the end of the year is something employees were not surprised about. And Godman suggests the UK workforce is more concerned about holding on to a job at the moment.
So, while City Link is not immune to the current volatile economic market, Godman remains confident that it can weather the storm. •