T hink of industry in the Midlands and you won't come
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up with more prominent names than Cadbury's and Dunlop, with brands that are famous the world over. Woodall Transport operates dedicated contracts for both these giants and boasts a relationship with Dunlop which goes back more than half a century— decades before the tyre maker's acquisition by Japanese firm, SP Tyres.
Woodall was founded in 1935 by owner-driver Jack Woodall, distributing Hercules Bicycles during that golden age of pedal power. During the war he began working for Dunlop and in 1950 his 12-vehicle business was nationalised. He started up again with his three longest serving drivers operating in a 25-mile radius exclusively for Dunlop. The business expanded at a moderate pace until Jack's son, John, joined in 1962.
In 1965, the company bought Woods Haulage in Aston, increasing its fleet from 11 to 25 and expanding its customer base. John has been running the operation since Jack's death in 1971 and although he took the reins early he gives thanks for a sound grounding in the business from his father. The relationship with Dunlop is still close, with Woodall carrying both raw materials and finished product. Eight dedicated vehicles are based at the tyre manufacturer's Coventry depot and three shunters live in Dunlop's Birmingham factory. Another six trucks feed Dunlop's depots with two on a night trunking service to a second Dunlop factory in Washington, Co Durham.
During the day the trunkers can switch to Cadbury's work if necessary The Cadbury's contract is a mirror image of Dunlop, with four trailers running in the chocolate maker's livery. Shunters are based at Bournev il le, Cadbury's manufacturing centre, while distribution vehicles run a 24hour service from Cadbury's Oldbury distribution centre. "It's fairly seasonal work and drops off in the summer, but during the peak periods at Christmas and Easter we have many more than the four dedicated trailers working for Cadbury," says Woodall.
When CM visited at the end of last month the Christmas season was well under way with Woodall supplying Cadbury's regional stores throughout the UK. Some "seasonal" products such as Easter eggs are, in fact, made all year round and stored. Of course Woodall is one of many hauliers that work for Dunlop or Cadbury's. The chocolate manufacturer has a reputation for driving a hard bargain with hauliers, to the extent that Birmingham operator Ponsonby Highcare (see opposite) withdrew from its Cadbury's contract, finding the rates too low 1/
"The rates are tight everywhere," shrugs Woodall. "It's all about vehicle utilisation—it's the return loads that make it pay We carry a lot of pallets for GKN and for many smaller customers who make a good contribution to the overall operation."
The firm has worked for Cadbury's since 1979, introduced by a new transport manager who had worked for one of the chocolate maker's other hauliers. It's the kind of blue-chip client many operators would love to have, even if the rates are not ideal: You do get other hauliers trying to muscle in but if you give good service you get loyalty from people," reasons Woodall.
IIe has other irons in the fire: the company turns over as much from running a service station at its depot as it does from haulage. It also runs a small catering operation with three Bedford Rascal mobile canteens supplying sandwiches to local businesses. It should come as no surprise that pound for pound this is a more profitable operation than running trucks or selling fuel.
Des Ponsonby is the man who said no to Cadbury's. "The rates," he says, "were a little too sharp for our taste." His company, the grandly named Ponsonby Highcare, had operated dedicated vehicles in the chocolate maker's livery for three years but earlier this year decided to pull out. He still runs occasional loads for Cadbury's who he stresses, smiling broadly, are "very nice people".
It's just that he believes the arrangement works better on a less formal basis. He reaches for a book of quotes on his desk and reads aloud: "If you refuse to accept anything but the best you often get it."
With his close-cropped sil% er hair and his enthusiasm for motivation, Ponsonby exudes the winning air of a lOotball coach. Above his office reception, a terse message greets visitors: "Don't quit." But in its quest for the best, Ponsonby has not only quit Cadbury but also pulled out of another mainstay, the brewing industry, five years ago.
"We found it tremendously cyclical and seasonal," explains Ponsonby. "At Christmas, Easter and during the summer holidays the demands were intense. And as brewers became more competitive, the profit was negligible. So we looked for a business that was not seasonal."
The answer lay no further than the paperwork on his desk. He revels in the irony. "The biggest growth in paper has been the 'paperless office'—look how much a computer can spew out in an hour. "Long live the paperless office," he says. The company moved into the distribution and storage of paper in 1991 and now has depots at factories in Winsford and Thrapston dedicated to one customer, US giant International Paper Containers (IPC, no relation to the London-based publishing company). The Winsford depot opened at the end of last year and now transports up to 40 loads a day.
Thrapston opened last month and Ponsonby hopes it will eventually match Winsford's output. The factories produce cartons and packaging for Proctor & Gamble, Mars, Walker Crisps, Weetabix and Lever Brothers. Small snacks are big business.
"We sometimes send seven trailers a day into Walker Crisps," says Ponsonby.
He has shifted the company's sights from general haulage to contract distribution and warehousing—it has 3,250m2of storage at its Witton headquarters; 6,500m2 at Winsford and next year a further 5,600m2 will open on an eight-acre site close to Birmingham. He says Birmingham will be dedicated to one customer and the site will also become his head office.
The company's offices will be upgraded from their already acceptable level of comfort. Not for Ponsonby an operation run out of a leaky portable building, warmed by an lpg heater.
"A good environment influences the quality of your work," he says. "You can't attract the right quality of staff otherwise."
He recruits administrative staff from nontransport environments, reckoning that candidates from legal and financial backgrounds have higher professional standards.
The company's customer base stands at more than 100, including local paper merchants and a small amount of brewery work for Bass, with 80% of business coming from 20 customers. But Ponsonby tries to limit one customer becoming worth more than 20% of turnover.
"When that happens we try to develop the business in other ways," he says. [PC breaks his golden rule, accounting for 28% of sales.
It is eight years since he and his brother Paul, the operational director, set up together by buying the assets of their parents' haulage business, providing Dennis and Eileen with a retirement nest egg.
Like many an Irish family, the boys' parents met in England, Dennis having come over from Donegal and Eileen from Roscommon. Des has one or two more golden rules to expound before CM takes its leave. All his vehicles are leased. Why?
"It gives you a cashflow advantage. If you get your cashflow under control you've got it made. I hate paying deposits—it's such a big ebb and flow on your cash."
The vehicles are replaced every three years. "My pet hate is old vehicles. There's no place for them on Britain's roads, they should be scrapped after five years. People who get their hands on old vehicles are the least equipped to maintain them properly."