Dress smart, think smart, act smart
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Ian Baxter has never shied away from voicing his views and opinions. CM hears why the boss of RH Freight wants to see the current cabotage rules scrapped and why he prefers his staff to be smart.
roger.browniarbi.co.uk / Images: Tom Cunningham
DRIVE AROUND Nottingham and you are almost guaranteed to spot the distinctive green Renault trucks operated by RH Freight The first impression is how spotless and well-prepared the vehicles look an immediate clue to the controlling hand behind the firm.
RH Freight has had a good run since managing director Ian Baxter joined 13 years ago. raising its turnover to £129m by the end of 2008 from £35m in 1995 in the competitive import/ export market.
Simple methods
Baxter who seems happy to discuss just about any issue facing the industry believes that adopting a simple business model is the key to building up a thriving road transport business.
In 1995 we had a £35m turnover business, but it was a complicated business using lots of partners and different routes. Now, we run as simple a business as we can.
We have developed 32 daily services from Nottingham and Tburrock to locations such as Paris, Budapest, Milan and Bucharest." he reveals. As part of the move towards making the business more efficient, RH which employs about 600 staff in 19 locations joined Europe's biggest freight network. System Alliance. in 2006.
System Alliance is a group of 46 independent freight companies across Europe, which have more than 26.000 staff between them. In large markets. such as Germany, RH Freight has 12 or 13 partners through the alliance, but in smaller countries only one.
"System Alliance is a group of European family-owned firms that have an annual turnover of at least £100m. and we meet up every year. almost like a club," Baxter says: "It's like a pallet network around Europe. Each company has to conform to the same quality standards and adopt uniform IT systems, thus offering a high-quality service in terms of shipment handling."
Cabotage rules
It may not be a widely held view, but Baxter believes in complete liberalisation of the EU transport market, and the scrapping of the existing cabotage rules "There has been free trade in Europe for a long time now, so why should road transport be any different?" he asks. "There should be a complete free market. I can't think of another area where intraEU competition is inhibited."
RH Freight has not been immune to the effects of the recession.
Baxter admits that the company suffered from the "big adjustment" in the economy at the end of 2008, and, reluctantly, had to shed approximately 100 jobs. It also recorded a 1.6% drop in pre-tax profit to £1.5m for the year to December 2008.
He says the company is now looking to hire sales staff again.
"If a customer goes out of business, it shouldn't be a big problem we have so many clients. and in diverse areas. which enables us to cushion the blow."
Anyone looking to join the company should expect to work to a certain standard. RH expects its staff to dress smartly, and treat customers and suppliers courteously to help build and maintain long-term relationships.
"We have put in a lot of effort to see the company is run as a professional business," Baxter says.
"R11 Freight is a meritocracy; you can build up your career and get to the top here, even if you are not a family member." •