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Pointing in the right diredion

22nd November 2007
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Which of the following most accurately describes the problem?

it's nearly a year since Ceva Logistics was formed from the separation of the TNT organisation. Andy

Salter caught up with business development

managing director Rob McWhirter to get the inside track on developments at the new company.

Frout the impressive new offices,just off the A42 at Ashby de la Zouch, to the infectious energy exuded by business developtent managing director Rob McWhirter as he riefs us on the company's plans, Ceva Logistics clearly going places.

The name itself might not be too inspirational, ut any confusion over the new name for an rganisation which was previously the 3PL ivision of the TNT empire has clearly receded. here's a confidence and optimism about the usiness which is often lacking in big rganisations.

McWhirter explains that the acquisition of le company by venture capitalist organisation polio in December 2006 has brought with it an ntrepreneurial culture where decision making fast, decisive some might say brutal (our ords, not his) and above all agile. In the fast Loving game that is logistics, those attributes re essential. "Venture capitalists clearly nderstand that you buy good business, not dead dogs," says McWhirter."The intention for Ceva is to unlock the potential of the business and make it better. TNT was, and remains, an extremely strong brand, but TNT Express is so strong that we were not always seen as a major player in third-party logistics."

He explains that the current task is to ensure Ceva is viewed as a major force in the sector.

Worldwide solution The recent merger with EGL (Eagle Global Logistics) will go a long way to promoting that view because it takes Ceva into the big league, with a €6bn turnover and a global footprint.

McWhirter is excited about the prospects: -This gives us immense worldwide capability. I can now go to a client and offer a complete worldwide solution.We were never able tooffer that, with confidence, in the past. The ability to globalise what we do gives us multiple options for future growth."

As a result of the merger Ceva will operate two divisions: Ceva Contract Logistics and Ceva Freight Management. To oversee the development of the organisation and deliver its goals, John Pattullo joins the company from DHL; as well as running the whole shooting match Pattullo will have operational responsibility for the Contract Logistics business. John Bento, previously president and chief marketing officer of EGL, will steer the Freight Management ship.

"We've got people at the top who are familiar with the business and who have the ability to deliver growth.which is clearly what the owners require," McWhirter reports. "The only thing that's definite in life in the venture capitalist world is that they require an exit when they will look to realise the value of their investment."

After 24 years with the company, McWhirter believes the past two years have been his most exciting and that excitement is palpable: "I started life as an order picker in a warehouse and I've not been this excited about my job in a very long time. It's amazing the uplift this activity has had throughout the business We're only a year out of the box and already new business is well ahead of previous years What's more our renewal rates are at the highest rate for the past five years. We never lost a single customer as a result of the sale and that's down to the people we have in the organisation."

Intellectual excellence Profitable growth is the key objective, says McWhirter, with the emphasis on profitable: "We're not just going to give growth for growth's sake that road leads to ruin. Profit is the key. To offer profit you have to add value through the range and extent of our offer. We have got a lot of intellectual excellence in this organisation which to date we've kept pretty much to a UK offering. We have to export that to the rest of the world and the new EGL infrastructure facilitates that."

The merger and growth activity isn't over; McWhirter stresses that the company is always on the lookout for further acquisitive growth opportunities "We're not so interested in the large-scale acquisitions now, hut we are on the lookout particularly for operations which are complementary to our own portfolio."

One of the biggest challenges, not just for Ceva, is the creep of environmental legislation and the impact this will have on the business. The signs of Ceva's environmental commitment are clear throughout the new office complex, from the environmental policy statement in reception through to the signs and reminders around the business." It's impossible for the country to manage without trucks on the road," says McWhirter.-Our responsibility is to ensure they are operated in the most efficient and environmentally friendly manner. We invest lot of resource in delivering on this front."

He cites the Smith Electric Vehicles 7..! tormer now on trial in London on a contra( with Starbucks as an example of this policy an the continuous programme of driver trainin for fuel efficiency is another.

For many companies a takeover by ventur capitalists has led to asset stripping,cost-cuttin and a ruthless approach to business where dril ing growth becomes more important the developing a sustainable business model. (es appears to be different, and if McWhirter enthusiasm is typical the organisation is mot vated to make the business a real success. Th coming weeks,months and years will be the re; acid test, but all the signs are promising. •


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