It is rude to stare but sometimes you can't help it. Mark Strong has been drinking from the same mug since the conversation began an hour ago. But it has only been since the questions turned to the two-day strike action over pay, which took place at Seafield Logistics in August, that the logo printed on the mug's side, 'World's Most Wonderful Boss', has looked so prominent. The dispute, which was first aired in public in June, looked grim.
URTU held a strike ballot involving 38 drivers at Seafield's Scunthorpe depot after rejecting what it described as the company's "nil pay offer".
According to regional organiser Graham Bird, Seafield had informed him that a primary reason behind the offer was that "it is not making any money". This was despite the company recording a turnover of £22.4m to June 30, 2005, up from £16.1m in 2004. On August 14 and 22 the drivers held 24-hour strikes.
"The action has now been resolved [the drivers accepted an hourly rate of £6.10 and a new bonus scheme]," says Strong, who has been managing director of Worksop-based Seafield since January 2003 following spells as a key account manager at NFC and as managing director of the retail and grocery network at Tibbett and Britten.
"We did endure some pain," he continues. "But we had to ensure that our customer service was maintained during the strikes. We kept them informed of the circumstances. We covered the work in the
same week."
Now with the dispute's dust beginning to settle, Strong says more regular dialogue with the URTU will be initiated. "We have a good working relationship. We both had agendas during the action but we were always on good terms. Of course there will be an element of bridge building involved."
What of the comment that Seafield had no money to pay their drivers? Strong is honest. "That was a fair comment from Bird. We operate around the break-even level. We are close to break even now. The plans that we have been talking about, getting them on board will advance that."
Strong is referring to the recent operational changes at Seafield Logistics which have been implemented since the start of the year. "The aim was to create a key account management structure across the company and introduce a new financial system, CODA, which gives the finance information in a format by which we can measure performance by individual customer to the last detail."
The Red Prairie warehouse management system will also be operational this month.
Strong explains his theory of a key account management structure. "The customer is measured in performance and financial terms separately. The customer has one key account contact to deal with any issues relating to any aspect of the trading relationship if they choose, but equally there is opportunity for a broader contact between our two businesses. That is to say our IT department will be working with their IT team on a project."
Strong estimates that it will be another three years before Seafield is "really motoring" on a full key account approach.
Changes have also been made further down the employment chain. The company recently launched a casual worker scheme for "people who need the flexibility of ad-hoc work but who want to work for one company. It is attractive to people who have major commitments outside of work such as caring for dependants".
With the structure developing, Seafield is starting to upgrade its 150-vehicle fleet. In the past five months it has replaced 44 vehicles in the WBB Minerals fleet, comprising 21 Scanias and 23 MANs, and has acquired 18 new Kelberg tipper trailers.
On the general tanker side it has taken on 17 new units in the past six months, comprising four MANs and 13 Mercedes. "We are leasing with maintenance or contract hiring," adds Strong. The company's property portfolio is also being rebuilt and expanded. Demolition of the existing warehouse at Aylesham began last month and will be completed in June next year. Work at the Northwich depot is anticipated to start in January and finish next September.
This internal focus followed a decision made last year to hire consultant FMC to audit the company. "This had to be independent," explains Strong. "We wanted someone to tell us the truth."
The audit took place last autumn. "The main finding from all the telephone and face-to-face interviews that were carried out was that few people knew who we were," says Strong. "This was among existing customers, potential customers and the consultancy's own contacts."
The audit also informed Seafield to improve its IT systems, increase its value-added services, implement account-management teams and improve customer relationship management. "These weren't surprise conclusions," says Strong leaning forward. "We were already planning this. It was a reconfirmation of what we already knew. We suspected that our customers wanted a one-stop shop."
But surely the lack of recognition of the company's name was a surprise? "Well, yes. I didn't believe it." The solution has included hiring, for the first time in the company's history, a public relations company. "They have helped us get access to the media which I guess is proven by your presence here! It is all helping us establish our brand."
Seafield has agreed with WBB to carry for the first time the words 'In partnership with Seafield Logistics' on its vehicles. "We would wish to do this with our other customers but it would be by individual agreement."
Marketing campaigns, including mailshots and follow-up calls, have been implemented. "We are getting a higher level of enquiries and are generating more leads. We've started going to some of the industry functions which we never did before," smiles Strong. "We are trying to get out more when there is an opportunity to do so."
The changes are getting Seafield noticed, he believes. "If you have a transport budget of say £250,000, then you are being left behind by the premier companies. We are saying that we will do your work at premier league standards. We are definitely getting more and more enquiries from customers at that scale. They like us because we stick to our knitting. We do road haulage," Strong says.
Customer relationships are however changing under the new business model. "Previously we had casual arrangements. Now we have volume guarantees placed inside long-term contracts. It is more flexible," he says. What does that mean exactly? "We inform customers in advance about peaks and troughs. We put this flexibility into the contract basing it on agreed volumes or number of loads."
He adds: "The days of customers underwriting all your risks are gone. We guarantee levels, we take the risk of backloading the vehicles. We are very comfortable with pain and pleasure. It can't all be one way. If we don't meet our levels we agree a penalty for not doing it."
MT looks again at Strong's mug. It's been a hard year for Seafield but given Strong's strategy for the future, perhaps that logo doesn't sound so outlandish anymore.
Reed Business Information Limited.©2009
