Chacksfield's challenge
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After its growth in the UK, TNT plans to imitate this success throughout Europe, headed by Bill Chacksfield.
• Bill Chacksfield's job title is deliberately cumbersome. He is the general manager of TNT's National Express Services Europe, a title chosen because, he explains, "it translates well into all major European languages, especially French and German".
TNT aims to export its domestic services throughout Europe. Chacksfield has been with the company for nine years; he helped to build up TNT's Same Day division and was in on the launch of TNT Motorcycle Couriers, TNT Air Charter Services and TNT Taxi Trucks Division.
TNT plans "to form a mirror-image of the UK in all the major European countries," he says, "although we will obviously be taking into account any individual needs in the countries involved." Chacksfield also spent 18 months as TNT Skypak's Eastern region vice-president in the USA, so he can appreciate that every country has its own way of looking at problems.
West Germany was "the obvious place to start", he says. "TNT already has a comprehensive service network there operating overnight, two-day and same-day services, plus a local inter-city courier."
German infrastructure
But the German transport infrastructure in the express market arena is "well behind the UK", says Chacksfield. Only TNT and the German railways offer any sort of express service, while TNT's pre-noon and pre-9am delivery services are trend-setters.
TNT launched its West German overnight service two years ago. It now accounts for about 25% of TNT UK's express parcels turnover and Chacksfield reckons there is a large market still to be exploited, helped by the strong West German economy and affordable interest rates. "We still have to sell the concept to some people," he says. "The just-in-time idea is still new in Germany and we are the only company providing the pre-9am and pre-noon services, but we are confident we can achieve good results."
Thanks to these services, TNT has a solid management infrastructure in Germany. Its policy is to recruit managers Locally, bring them over to the UK and show them how the services work here, and then let them develop the services themselves back home.
The West German operation employs 1,500 people, not counting the many owneroperators who work exclusively for TNT. The network developed out of the acquisition of Ipec, but has since progressed "entirely organically", says Chacksfield: "We used people from the old Ipec organisation to introduce new products."
Expansion has been rapid, but TNT is aiming high. "Our senior managers there are determined to make the West German express services bigger than the UK domestic ones," says Chacksfield, "and they feel the strength of their economy will help them."
After consolidation in Germany, TNT will target the Benelux countries. "We have just taken on a national express manager to work out of Brussels and he will come over to start his training in the UK," says Chacksfield. There is already a small domestic operation run by TNT Skypak, and by next June Chacksfield hopes the express services will be up and running. He believes growth in the Benelux countries will primarily be achieved by acquiring some of the many small local courier companies that exist there.
Scandinavia, Austria and Switzerland will follow, then Italy and Spain, where TNT already runs two successful domestic operations, followed by France. Eventually, Chacksfield envisages an international interchange of managers at senior and intermediate level to produce "a great crossfertilisation of ideas".
Marketing campaigns and advertising slogans will be decided in each country, although initially some will be developed in the UK and adapted to suit local needs.
Behind each domestic network the TNT organisation will be there to advise and assist. "We have developed lots of expertise and experience in the UK and can give useful direction to the new companies," says Chacksfield.
Development That advice is likely to include what not to do: "There was a stage in the development of TNT Same Day when we considered changing its name to TNT Courier," Chacksfield recalls, "so we did this as an experiment in London. As a result we lost a huge amount of large direct movements because people did not think a `courier' operation was suitable for their needs."
Having been involved with the "spectacular development" of TNT Same Day and its subdivisions from the early days, Chatsfield knows the target he's aiming for when he predicts that TNT's growth in Europe, before and after 1992, will be "just as exciting".
"My stimulating and rewarding job is to help in this change," he says.
LI by Barbara Millar