rob-mcwhirter-1.jpgThe last year has seen CEVA Logistics established as a powerful force on the world stage. The ‘CEVA’ brand is new in the industry, but the businesses behind it have a long history of successful service. The first part of the business to be unveiled, CEVA Contract Logistics, came into being just over a year ago in December 2006, after TNT Logistics was bought and re-branded by the private equity company Apollo Management. Apollo subsequently bought EGL, the global freight forwarding specialist, which became CEVA Freight Management. The two businesses then merged to form CEVA Logistics, the UK’s third largest, and impressively the world’s fourth largest supply chain management company.

CEVA designs, implements and operates complex supply chain solutions on a national, regional or global scale, for medium to large enterprises. Automotive is CEVA’s largest global industry sector: CEVA is a world leader in servicing the logistics needs of all major OEMs and automotive suppliers. The Contract Logistics business employs over 38,000 dedicated professionals worldwide, maintains 567 warehouses, with total floor space of 7.4 million square metres, and operates a global network in 26 countries. Rob McWhirter, MD, Business Development at CEVA Contract Logistics Ltd, the UK operation, spoke to Warehouse & Logistics News.

Warehouse & Logistics News – Rob, when did you join CEVA Logistics? What were you doing before your present role?
I originally joined TNT in March 1983, when it was solely a parcels business. The logistics operation was created in 1986: I joined the contract logistics division in 1988, taking on various operational roles. I moved to business development in 1991 and assumed the role of Business Development Director in 1998. I took up my current role of MD for Contract Logistics Business Development in 2002. In that position I led the UK re-branding programme from TNT Logistics to CEVA.

WLN – Given your job title, are you ultimately responsible for moving CEVA Logistics’ business forward?
Yes, in the UK I’m responsible for strategic development of our dedicated logistics business, identifying new markets and creating growth. My brief is to deliver sustained, profitable growth to the business. Our culture is built around the pursuit of excellence, with the emphasis on high-level support. I lead a team of 39 supply chain specialists and we have a dual role, fifty percent strategic support and service improvement for our existing business, fifty percent new business development.

WLN – In your new role, what are your most exciting challenges?
The biggest challenge is to bring the new brand to life. It’s an incredibly exciting time, operating as a new, fresh, growing brand. We’re keen to grow the business: the TNT brand was, and still is, extremely strong overall, but as the contract logistics arm of TNT the full scale and scope of our business was not widely known.

WLN – Just before the CEVA Contract Logistics name change was announced, we interviewed David Bermingham, then MD of TNT Newsfast. What’s David doing now?
David’s still very much involved in CEVA Logistics. Within Contract Logistics in the UK we have three businesses, Dedicated Logistics, focusing on large end-to-end supply chains, and Multi-user Logistics, specialising in shared-user logistics, particularly in the publishing and FMCG market, of which David is MD. Our third business, Container Logistics, provides a range of services for container hire and management services.

WLN – Who is on the CEVA Logistics UK management team?
I’m joint MD of the ‘Dedicated’ business with Andy Fitt, MD of Operations. In essence, Andy has responsibility for ‘today,’ and I have responsibility for ‘tomorrow.’ David Bermingham heads the Multi-user business. Martin Thornhill has responsibility for our container business. The other important person to mention is Gerard Ryan, MD for CEVA Freight Management (formerly EGL) in the UK.

WLN – I gather you have a new UK MD for CEVA Logistics joining shortly. Can you tell us about that appointment?
A new UK MD for CEVA Logistics joins this summer. He will take responsibility for all UK operating units, effectively acting as CEO for the whole UK business. Andy, David, Martin and I will report to him. The new appointment will strengthen our opportunity to cross-sell our services with our freight management colleagues, and build our business in taking responsibility for end to end supply chain solutions. The new person will be the fulcrum of achieving the integrated solution.

WLN – Is the merger of the former TNT Logistics and EGL now complete?
Yes, it is. We’re now actively leveraging the synergies, and cross-selling opportunities and supplying a single solution to our client businesses that is truly CEVA-branded. Our people have adapted very quickly.

WLN – Where is your HQ?
CEVA’s global HQ is in Amsterdam: CEVA Logistics’ UK HQ is in Ashby de la Zouch. CEVA House, Ashby, is a totally new location for the business, adding to the excitement.

WLN – When did the new-look operation go live?
The Contract Logistics business went live globally with the new identity on 12 December 2006: EGL was re-branded as CEVA globally in November 2007.

WLN – How do you sum up CEVA Logistics’ vision?
By 2010, CEVA will be the most admired company in the supply chain industry, achieving global revenues of €10 billion.

WLN – What does the term ‘LEAN’ mean?
LEAN is the platform CEVA uses to identify non-value added activities and improve productivity and service in its operations. CEVA has been developing a global LEAN culture throughout its business since 2004.

WLN – How are you introducing the new CEVA vision throughout the business?
We have an integrated communications programme underway. It started with extensive media coverage, coordinated with local initiatives to keep our colleagues and our clients abreast of developments, including internal communications and presentations. The programme will continue into the foreseeable future, during which time we’re keeping communications highly visible.

WLN – Presumably the two businesses each had established quality cultures and procedures, so aspiring to this vision hasn’t been too much of a shock?
You’re right, there was, and is, a huge commonality between the businesses. Both have a customer-first mentality and are people-driven. We’re in the process of capturing the best elements of both: there’s significant scope to sell the benefits of one company to the other’s customers and grow the business.

WLN – In practical terms, how do you co-ordinate and manage the cross-selling effort to maximise the opportunities?
We have initiatives at three levels, globally, regionally and locally. We also have global industry sector teams and global client account teams.

WLN – How much has been invested in new IT, infrastructure and other areas – jobs, vehicles etc – to bring the new-look organisation up to the standard you require around the world?
The investment so far has been more in planning time and reorganisation; effort rather than cash. Our focus is on customer service.

WLN – What is CEVA Contract Logistics’ UK turnover?
Excluding freight management, CEVA UK represents 19% of CEVA Contract Logistics’ global business.

WLN – What size organisations – turnover, scale of operations – do you serve in the UK? Where does the UK rank as a market in your worldwide operations?
The vast majority of businesses we serve are blue chip, relatively large-scale supply chain contracts. However, our approach is based on where we can truly add value to our customers. The annual value of our contracts vary from €1M to several tens of millions of euros.

WLN – What are CEVA Logistics’ key industry sectors?
Our key sectors globally are automotive, FMCG, high tech electronics, aerospace, industrial, publishing, and oil & gas. Oil and gas is predominantly Freight Management: our Freight Management business has a strong energy heritage in the US.

In the UK we mirror very closely the global sector focus, in particular FMCG and home delivery, including two-man delivery and installation, one of our fastest growing sectors. We manage large-scale home delivery operations for retailers such as Tesco and B&Q. Our automotive after-market clients include Volkswagen Group and Nissan-Renault with whom we have had long standing relationships for over 20 years.

An additional key UK market sector is the public utilities: customers here include Anglian Water and regional electricity companies, for whom we run the entire supply chain for their field engineers. Within the scope of activity we operate off-road equipment, supporting major capital projects.

WLN – Do you do reverse logistics?
There isn’t a single contract where we aren’t doing some sort of reverse logistics, either domestic or international: these are easy wins for our clients, given we have fleets on the road all day. On the Waste Electrical and Electronic Equipment Directive, we’re running pilots here and in Europe. WEEE isn’t being fully implemented yet, but we’re ready with operational templates.

WLN – Briefly, what is the situation in the four UK business areas, Contract Logistics, Container Logistics, Newsfast and Network Logistics?
All four are enjoying consistent growth, which will continue and accelerate in 2008 and beyond. I’m confident that with the new opportunities that our range of services now involving CEVA Freight Management will attract, we can create optimum end-to-end supply chains, which will add significant business opportunities.

WLN – What industry standards do you work to?
We’re fully accredited to the ISO9001, 14001 and 18001 standards for operations and business development. All operating locations are accredited to IIP. We were the first in the transport and logistics sector in the UK to receive this accreditation, and we now have similar accreditations elsewhere in the world.

WLN – Where are you on the pathway from a ‘generic 3PL’ to a 4PL offering innovative, complex, globally integrated supply chain solutions?
Rather than say we’re migrating from a 3PL to a 4PL, I’d prefer to say we’re moving to industry-facing solutions, which enable us to bring together non-competitive clients in a given sector to share resources.

WLN – What are the key external factors that are likely to impact on your business worldwide?
The continued volatility in fuel prices is a major concern. Another is the US economy and the dollar’s weakness, which is affecting the growing number of international customers operating in that currency and making long-term investments in it.

Locally, in the UK we face a shortage of specialist labour, particularly drivers capable of driving technically modern vehicles. We have a stated policy of not using agency drivers at night, and instead invest in recruitment and driver training. The Working Time Directive hasn’t made much difference to businesses like ours at the professional end of the industry.

Legislation is another factor affecting the industry overall. As a country we embrace and police all EU legislation in a more rigorous manner than many other countries. This includes congestion charging and the enforcement of the London Low Emission Zone (LEZ.)

WLN – Looking at your business, would you say there’s a slowdown in the UK economy? What about the rest of the world?
We don’t think there is a slowdown in the UK: the majority of customers remain very confident. Internationally, we have undoubted concerns about the US, where we have a large business in contract logistics and freight management. In Europe we’re continuing to grow, and Asia Pacific is exceeding all expectations.

WLN – Where do you see CEVA Logistics Ltd going from here?
I can see CEVA going from strength to strength. Our clear vision is that by 2010 CEVA will be the most admired company in the supply chain industry, achieving revenue in excess of €10 billion, and I firmly believe we will achieve that vision.

CEVA Logistics Ltd
Rob McWhirter, MD, Business Development
Tel: 01530 568701
www.cevalogistics.co.uk

1 Comment

  1. Gus McPhillips

    how does my company become an approved supplier for Agency Drivers at your depots in and around Glasgow