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A TAXI SERVICE WITH LORRIES
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'General specialist' Richmond Transport has mastered the art of being
a successful small haulier. Dave Young finds out how.
Conventional wisdom —backed by a good deal of statistics — supports the notion of an ever-decreasing number of small hauliers.The traditional family road transport business is. according to many industry observers, an endangered species, no longer able to compete in the modern logistics marketplace.
One company cheerily challenging such a view is Richmond Transport. based in Horndean, just off the A3(M) on the outskirts of Portsmouth. Currently celebrating 25 years of survival and relative prosperity, the firm concentrates on courier and light haulage work, employing a mixed fleet to become an apparent contradiction in terms — a general specialist.
Humble origins
The Richmond story began 25 years ago when former engineer Graham Richmond started out with a flatbed V4 petrol-engined Ford Transit. Slowly and incrementally the enterprise has grown to its current size of almost two dozen vehicles Currently, the fleet comprises a mixture of Mercedes Sprinters at the lightweight end and Dafs for everything heavier, including the attic units. In line with recent industry trends little Richmond Transport has even acquired another haulier —Ian Enfield Transport —gjving it a second base at Fontwell in East Sussex.
Most of the firm's work has a very short lead time. "At 3pm we might have only two loads sorted: by 5pm all the vehicles can be booked," says Graham.
As with many other courier businesses there are more vehicles than drivers—but what appears a horrible under-utilisation of capital equipment does, according to Graham, make economic sense. Richmond needs the flexibility to give clients the correct platform for specific jobs, for example the Sprinters have a choice of panel, flat and curtain-sided bodies."Ninety per cent of the fleet is bought and paid for," says Graham,"so we can afford to stand trucks. "There are long-bodied, flatbed 7.5-tonners to shift air conditioning equipment and aircraft parts, a sliding roof curtainsider at 18 tonnes for top loading and a similar weight flat with its own Peschi self-loading crane.
"We're not a scheduled operation, but ad hoc, like a taxi service with lorries," says Graham."We work in a niche market, which attracts some degree of price premium." Put simply, if the customer wants an urgent delivery they pay extra for the privilege. The firm does have a few regular contracts, for example one artic regularly trunks beer between the village brewery and London, and another hauls containers for Maritime.
Graham uses the word 'flexibility' frequently when talking to CM, and this concept is also extended to the staff. Drivers are required to swap trucks (although the larger trucks remain singly allocated as far as possible), and office staff—including the boss —must be prepared to turn out and get up the road when needs must.
According to Graham, few of Richmond's many repeat courier customers ask for a price in advance."W gel constant work; they trust us to do a good job and stick with us. We may lose jobs on rates but not service.
Richmond further assists customers by having access to a pallet network via Steve Porter. a well known Isle of Wight haulier will whom Graham has close links and who, he believes, shares similar business principles.
For many years the cramped island of Portsmouth,south of the M27, had one main employer, the naval dockyard.As this has declined in size post-Falklands conflict, so a variety of newer technology industries based around electronics, precision manufacturing and long-standing aerospace connections hal developed on its hinterland — at Farlington and Waterlooville -and these have become Richmond's main clients.
The firm deliberately maintains a broad :ustomer portfolio. A while back it lost a major :ontract on price:"Up to 50% ofour work Nalked out the door," says Graham ruefully. Vluch of it came back in dribs and drabs as mstomers realised they weren't getting the iame quality of service, but Richmond took he harsh lesson to heart."A diverse customer )ase is essential nowadays," he believes. He has Lis° varied the mix by virtue of the Fontwell lepot having a different portfolio, with lots of laily distribution and scope for development. -Towever he admits to be "looking more at !onsolidation than expansion".
Again bucking recent trends, all naintenance apart from warranty and Z&M contract work is being brought n-house.The purchase of Fontwell brought vith it a workshop under the control of Andy ilusgrove."who has a fantastic rapport with Josa".This is all the more important given he firm's policy of buying small vehicles new ,ut larger kit second-hand to let someone else ake the biggest hit of depreciation.
With an increasingly tight regime at Vosa iraharn has been keen to develop good elations to secure a sound local reputation, referring to work with rather than challenge statutory authority. Another advantage of le workshop is its ability to attract third-party ;ork as another source of income. Richmond's fleet-buying policy has shifted recent years. "I was a big Mercedes man ut [Sprinter excepted] there's too much !chnology in them," tys Graham. "Russ lash of dealerAdams lorey visited us. I would ever have thought of latbut it's the whole ackage: more geared to the operator, )(ad product, good backup and a -owing reputation. I'd rather have DafAid an MB24 the dealers are more focused on getting the truck back on the road."
Unlike many small hauliers Richmond still undertakes some foreign work, and finds that sending the Sprinters abroad can be particularly profitable. However it tends to make such journeys to assist existing clients rather than actively seeking such jobs."The lads quite like it," concedes Graham. Fuel in the UK and abroad is sourced through the DKV diesel direct network.
Cutting-edge technology
Also at variance with many modestly sized concerns, Richmond is a keen user of new technology Roadrunner software and loadsourcing sites including Haulage Exchange, Courier Exchange and the MoD's own online brokerage. "In the last few years we've got more and more into IT" says Graham."Easier broadband access was the main prompt.
The firm uses AVL Navman GPS satellite tracking and telematics. -We find [telematics] useful for historical rather than live data: not so much where the vehicle is but where it's been. It shows our customers a commitment to keeping up with technology and improving efficiency. Access to information is what its all about -hut you have to keep your feet firmly on the ground; satellite tracking is just another tool in the box." Graham is now -considering the latest generation which links navigation to tracking, allowing us to send a message to the driver".
Graham and Lynne, his wife and joint company director, are committed to teamwork and a hands-on approach.This is exemplified by right-hand man Mick Bailey who has been with them 18 years and is effectively transport manager, although Graham likes a flat managerial hierarchy and is wary of inflexible job titles.
"I'm trying to run a team rather than manage a structure.The more levels of management you put into any business involving haulage the more fuzzy you make the issues for the guy in the truck.., you can motivate someone by making them feel like a human being," he says.
One objective Graham prioritises is training. For him this is not an optional extra to be undertaken only if there's time or spare cash. Currently, two of the younger people in the office are developing their careers and skills by taking NVQs. Bailey is already formidably qualified with national and international CPCs,NVOs, a licence, and ADR and health and safety qualifications. By being demonstrably able to do the job Graham believes his managers "set drivers achievable goals" and can provide them with real support. He is also happy to train those behind the wheel. "We trained most of our [I .GV] licence holders; there's some funding through Safed and NVQ. the rest we pay.You've got to keep training people the cost of training spread over a career is minimal."
What if drivers leave, we ask, echoing a long-standing moan of CM readers who are also small employers. Indeed a key employee of 12 years' standing whom Richmond A 'Prop man Ken Howe funded for his vocational licence has recently left to pursue his dream of being an owner-driver. Graham is clear this individual amply repaid the training investment during those years of service and holds no grudges; in fact he is likely to become a regular subbie.
The firm does a lot of dry ADR jobs another way of adding value and sustaining rates -and is increasingly trusted with other high-security cargo.
"You need to defend your niche and expand your range of services; for our customers we operate a one-stop-shop principle.This is a service industry if you don't provide a good service you won't be in business long," says Graham. -You have to focus on what customers want and provide [services] where the market is moving. You need to drive around with your eyes open to find opportunities," says the man who claims he's not sure of the difference between sales and marketing, but seems to have grasped both concepts pretty thoroughly.
Finding business
If we find a company we think we could be useful to we credit-check them, research them,decide if we want to do business with them." Only then does Richmond approach a prospective customer and, if it is successful with the pitch,aim,as Graham puts it,to"work in partnership".
To this end he expects his uniformed drivers to be polite and diplomatic."I say to them,'I'm paid to be shouted at, not the guys in traffic. The customer is paying not to be shouted at."
So what of the future? Yard space is an issue The small but neat office, warehouse and hard-standing on a modern industrial estate in Horndean are leased rather than freehold and too small for the artics and trailers, which are parked on the outskirts of Portsmouth five miles away.A freehold site would be good, hut Graham is reluctant to take on the debt buyinl land in this expensive, crowded corner of the south-east would incur. He'd rather work for himself than the bank."We stand alone on out own cash flow," he says, clearly conscious of tb. safety net of keeping equity in the trucks.
Already committed to consolidation. Graham strives to employ his current resources ever more efficiently, a virtuous circle of benefit to customers and his business. "I don't want to grow the firm to a level where it would lose the family feeling," he says, wisel: seeking to preserve Richmond Transport's biggest and hardest-won asset.