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Nothing beats home-grown
September 1st 2009

Bibby Distribution aims to double its profit and turnover over the next three years. Steve Potter, operations director at the familyowned firm, says it's all about the 'discretionary effort' of Bibby's people. Brendan Coyne reports

Family-owned firms don't last two centuries ? seeing off numerous wars, depressions, famines and countless recessions ? without knowing what they are doing. Bibby Distribution, which ended last year with a healthy profit and surplus cash, is an example of how to harness that knowledge and turn an economic slump into a business-sharpening tool.

Recently the company announced it aims to double profits and turnover in the next three years, to around ?380m with ?10m profit. A bold statement, but operations director, Steve Potter, says Bibby has the customers, the cash and the people to make it happen.

"The current climate may be operationally challenging in the short term, but out strategic goals remain the same: to keep and grow our current customers; to identify acquisitions in our core business and to win new contracts with new customers. All of that remains as it was before the recession." However, what Bibby wants to see coming out of recession is a better customer perception of how it stands out in a crowded marketplace. To this end, the company has launched two initiatives: Project Differentiate and Project Accelerate.

"Both projects are linked," Potter explains. "Project Accelerate is us defining our culture and values and building that into a strategic model so that we know internally what our business is all about and how we stand out from our competition. Project Differentiate takes all of that work and transfers it into media: we have a new website, a new corporate presentation and several other elements that help us to communicate better with people and raise our profile. Through research, we have found that our size, scale and capability is often underestimated. So Accelerate is an internal exercise making sure all our people know what we are about. Differentiate is about how we go out to the market and communicate those values." So how exactly does Bibby differ from its competitors? "It stems from our private ownership, which means we have ultimate control over our destiny. The company is 200 years old.

That creates a lot of stability and a enables a commitment to the long term that our compeititors, by their very nature, do not have," says Potter. "So we have the freedom to operate in a different way ? more flexibility with our customers and a real commitment to the development of our people." 'Investing in people' is a nice term to bandy around, but what does that actually mean to customers? Potter says it means better value for money. By way of proof, over half of Bibby Distribution customers have been with the company for more than a decade.

"Logistics companies all have trucks and sheds, but it is about the people we have within the business and their commitment to us and our customers: How those people are trained and developed; how they understand what is required of them; what they can add in the longer term and whether they are actually committed to discretionary effort ? that's one of the phrases that we use a lot. How committed are our people to delivering more than you might expect? And what we find in terms of feedback is that our customers really apprecate the people that we have in our operations and the difference that they make."

Green drive boosts profits Bibby has been boosting its bottom line and reducing its environmental impact for some time. At the start of last year it launched a three-point plan designed to increase fuel efficiency; utilise full capacity of goods vehicles; and deploy more efficient new tehnology within its properties where possible. The plan also looked to reduce waste and costs by improving fuel usage (with Safe and Fuel Efficient Driving (SAFED) imlemented into the driver training programme), supporting new developments in alternative, eco-efficient technology and implementing new vehicle design .As a result of its actions so far, Bibby Distribution has already seen a reduction in its levels of CO2 by over 2,000 tonnes per annum.

"Also, by implementing changes to our warehousing, office equipment and data systems and retrofitting three of our major distribution centres with energy efficient lighting – a capital investment of close to £500,000 – we've made an annual reduction of over 600 tonnes of CO2," says Potter. While, given the recession, environmental inititiatives have slipped down the agenda across many business sectors, Potter says in most cases, "making environmentally beneficial changes goes hand-in-hand within reducing business cost".

"We are already seeing the rewards of our work and would urge businesses throughout the industry to make similar changes to their operations now in order to improve both environmental standards and their bottom lines," says Potter.

From shopfloor to director Steve Potter's talk of commitment to staff is more than just rhetoric, as the example of Mark Wilson (pictured right) proves: Wilson started his career with the company 19 years ago as a warehouse operative in the NISA Today's operation at Scunthorpe. His ambition, talent and dedication was recognised and harnessed by Bibby and Mark eventually became the contract's general manager. Then, when the operation moved to its new site in 2005, he chose to move into the wider business and took on a general manager role with responsibility for multiple contracts.

Having got to grips with this step,Wilson has since taken on more responsibility, developed his own team and is now one of Bibby's four Divisional Directors.

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