Geodis driving through the pain barrier

Geodis UK's Glasgow facility earlier this month picked up a new contract to provide locally based first aid equipment supplier Wallace Cameron with most of its distribution and logistics needs.
Glasgow, one of six multiuser sites operated by Geodis across the country, was extended in April when an air and sea freight operation launched there. And it is already pleasingly full, reports sales director Tony d'Arcy.
"It's only 1,200sq metres, but there's a lot of empty warehouse space in Scotland at the moment, so that's significant, " he says.
Wallace Cameron has a wide customer portfolio, from local distributors to multinational corporations. Geodis manages the global transportation of components into Scotland, where the first aid kits are assembled. The products then go by sea to distributors in more than 20 countries, including Australia, Canada and the US.
Other recent wins for Geodis include a complete logistics package for Allegro, the US manufacturer of cosmetic bags and overnight kits, and a fiveyear contract to supply Johnson Matthey's speciality coatings business with distribution and logistics services.
Sunrise Medical extended its contract for a further two years while Geodis is now bringing in 100 pallets of Akzo Nobel paint a day from the Netherlands, double the previous quantity, for distribution to the automotive repair market.
Last year the Geodis group made profits for the first time in four years. The UK arm is aiming to move into the black next year, which will represent a seven-figure turnaround, says MD Jamie Cuthbert.
Road transport still accounts for more than half of UK business, supplemented by sea freight, air freight and project cargo. "We are focused on growing our logistics business, and sea and air freight as they relate to that, " says Cuthbert.
"We don't just want to manage the warehouse. We want to link customers to our network operations and tie them in more." He claims particular success with the UK subsidiaries of foreign groups, where Geodis can bring in goods from around the world and hold stock locally, distributing from shared facilities or dedicated warehousing.
It set up a dedicated 20,000sq metre facility for Rubbermaid, for example, after winning a tender "against the usual suspects". The company is distributing the Curver, Little Tikes and Greycare ranges, overseeing the arrival into the UK of around 15 containers a day and despatching 20 or 30 trailers.
In this case the client was looking for more than UK roadbased distribution, and needed solutions in France, Germany and Poland. But what else, apart from international scale, works in favour of Geodis in these situations?
"If we are to believe our customers, we were more flexible.
To gain business in the mature UK market you have to be open minded and not try to pigeonhole people, or impose off-theshelf solutions, " says Cuthbert.
"Speed of response was a factor too. We have a flat structure which makes for easy decision making. In two months we had got a warehouse built in Coventry and the staff trained." Multi-user is looking healthier, too.
As well as expanding its Glasgow operation, Geodis has moved into its own warehouse in Northampton, which it previously shared with its pallet exchange cousin, Fortec.
"The network logistics sites were not very full a year ago but we're now looking at adding space where we are managing stock and doing UK distribution, " Cuthbert says.
Margins in European road haulage are a concern, which Geodis is combating by concentrating on niches such as precious metals, chemicals and radioactive loads, involving specialised vehicles and highly trained drivers.
"Customers come to us when they've had a bad experience, and they are prepared to pay a premium. They are buying expertise from us in areas where the cargo is valuable or movement is heavily regulated, " he says.
Geodis has "gone through the pain and come out of the other side, while others are still consolidating, " Cuthbert summarises. More red ink next year, you sense, would be a massive disappointment.