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In transport for the long haul

21st September 2006
Page 26
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Page 26, 21st September 2006 — In transport for the long haul
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Which of the following most accurately describes the problem?

He may be relatively new to the industry, but Neil Cunningham, boss of Ramage Distribution, already has a keen eye for what makes the difference in business. Dominic Perry reports.

Neil Cunningham, managing director of Scottish transport and warehousing operator Ramage Distribution, is not your typical transport boss. Before 2001 he'd had no experience whatsoever in the industry. His CV shows a 'professional services' background including a stint at accountancy firm Pricewaterhouse Coopers and a period as a corporate lawyeror,as he puts it,"absolutely nothing to do with trucks", Despite (or more probably because of) this, he was invited by the firm's late owner Jack Ramage to join the board as a non-executive director. Four years later, in April 2005, Cunningham joined the business in a full-time capacity as its managing director.

It is, he admits, a massively different role, -To put it simply, as a non-executive director you listen to the discussion and make suggestions where you feel it's helpful.That's the end of your function. [As MD] it's quite different. "When Jack asked me to go on the board it was nothing to do with my expertise in the industry. My service director Eddie Magilton would probably say that statement still rings true, but the fact is that I don't need to be tan expert at transport] because others are."

The bigger picture

Cunningham doesn't concern himself with the day-to-day running of the business but the wider strategic problems. "I get involved and push forward with project issues overarching issues such as IT upgrades, tuning the depot network, the strategy going forward, or the configuration of warehousing versus yard space."

Since he took over, his time has been focused on three areas: adding to the management team; upgrading the firm's IT system; and overhauling the depot network.

Jo that end two new business development managers have been brought in, one into the core business and one into its newly-launched recycling arm; the firm's entire IT system, including 90-95% of the software, has been upgraded: and its Haydock depot has been replaced with a new site at Wigan and its Hatfield depot with one at Biggleswade.

There are no plans, however, to replace the head office at Glespin, South Lanarkshire. When I suggest this is somewhat off the beaten track I get a robust response. "It's not as middle of nowhere as you might think," says Cunningham. "We're only half an hour from Glasgow here and, anyway, the directors and senior staff are permanently going round the depot network so the location of the business is academic anyway it doesn't matter at all where the head office is sited.

"We set out our stall as a UK haulier as opposed to being a Scottish haulier working on solely Scottish business. We get involved in all sorts of work that doesn't involve moving things to or from Scotland. We're a UK operator; we make it plain that's what we are."

As part of the effort to become more of a UK-wide brand, the firm recently updated its livery, ditching the distinctively Scottish thistle from its trucks.Surelv it isn't trying to play down its Scottishness? "The heritage of our business and what it stands for are very inaportant,but as I said, we do a whole lot more than move goods to and from Scotland," says Cunningham. It was just more appropriate to do away with the thistle."

Ramage operates in four main sectors: food, drink, electrical goods and recycling. It's this last arm of the business that Cunningham is keenest to push forward,saying there is"a huge potential in that market". And because the paper and card carried is pre-bundled or caged, making it compatible with the existing trailer fleet, he has aimed at a sector that is less reliant on capital investment. It also dovetails nicely with existing business; when dropping off food or drink at a supermarket RDC, a truck can back load with that depot's waste packaging.

Ramage runs 150 trucks with 27,900m2 of warehouse space spread across three sites, combining to produce a £15m-a-year turnover. Cunningham hopes to expand this, through organic growth alone, by 15% year on year. but says he is also actively looking for acquisitions and to expand geographically in England.

In the meantime, he has to concentrate on keeping the existing business. As his service director Eddie Magi1ton says, the key to the business is service. The way things are now in the industry, if you don't keep service levels up and keep the customers happy, then anyone and everyone with trucks and warehousing has an opportunity to have a go at your business.

"The key is getting the right rate. If your company is geared up properly and is as efficient as possible and you give your customers exactly what they are looking for, then you stand a far better chance of getting the right price for the job."

Cunningham says it is only through giving clients more that you can make sufficient return to carrr., on reinvesting. He adds: "That's where IT becomes very important.

-It's a given that service will be of the requested quality and that your vehicles will he where they are supposed to be; it's the other addedvalue services that will make the difference.

-Good quality information is the most important thing for your customers it enables them to run their business more efficiently. Our investment in the last year is designed to do exactly that."

Added value

Although Cunningham is planning for growth, he stresses several times that it should be carefully controlled. "You don't need to look very far to see examples of companies that have grown in a haphazard and dishevelled way. A lot came on very brightly and then went out in the same way at the other end."

Cunningham intends to be with the firm for the long haul. "It's a fantastic business. The customer service levels here are unlike anything else I've seen in my career and I've dealt with a lot of business during the course of my working life. We have a great workforce who are committed to the customers and the business. If this doesn't represent a good opportunity for building a very substantial business then I don't know what does."

Many of the staff have been with the firm for a substantial period of time partly, Cunningham says, thanks to the influence of former owner Jack Ramage. "Jack was a truly exceptional human being. He was the sort of individual who engendered fierce loyalty in people who worked for him.

"I don't think I'm big enough to till his shoes he was a one-off." •


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