A Sydney logistics company has grown swiftly by helping its customers to find new business in Asia – and as they grow bigger so does GT Logistics.
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Entrepreneur: Glenn Turner, Managing Director/Founder
Company: GT Logistics
Business type: Logistics
Founded: 2002
Employees: 12 Staff. Domestic operations in Sydney, Brisbane and Melbourne. International operations in Asia-Pacific and London
Turnover: $2M, first six months of operation in 2002; projected turnover of $10M for full financial year
Head office: Sydney, New South Wales
Contact details: +61 2 9661 8788
The GT Logistics Story
Glenn Turner has spent six months of this year overseas. That is not surprising considering how he plans to grow his Sydney-based logistics company, which specialises in handling any sort of perishable cargo. Turner knows the value of differentiating his company from its competitors. GT Logistics constantly reiterates the themes of personal service, customer focus and innovative technology.
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Key learning points:
- Cultural awareness - If you do business in Asia, take someone along who knows the culture. Having someone who can speak and write the language is a substantial advantage.
- Market research - When starting your business, market research is essential. Do not waste capital by throwing darts in the dark.
- Business planning - Be thorough - and truthful - with your business plan. When seeking finance, be realistic.
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Turner also knows the value of a good business network. And he has found it easier to extend his network in places such as Jakarta and Bangkok than in his own country. Why? “It’s hard for me to get business here in Australia,” Turner says. “I’m 28 years old and people here want to deal with a multinational company. So I go overseas. The Asians are much more receptive to someone who has got an idea.”
By doing his logistics a little differently, Turner is using his overseas network to expand the domestic side of the business. For example, he might find a client in Jakarta for one of his customers in Australia. His philosophy is succinct: if he can grow their businesses, he is helping to grow his own.
By controlling margins, Turner is able to improve service to existing or potential customers: “Let’s say you are an exporter selling tomatoes to Singapore,” Turner says. “The client in Singapore tries to screw you down because you are only just getting into the market. Now, if it’s a client that I’ve got, I can control the freight and I can also provide a little bit better revenue stream for that exporter.
“The easiest way for me to get a new client is to introduce him to a new customer. Win-win. You know what? I use it as leverage. I say, ‘I’ve got a guy who might be interested in buying some meat from you. And they go, yeah, sure.’ But when this guy places his first order with this potential client, I say, ‘Ok, I’ve grown your business, now you grow mine.’ And I’ll ask for the rest of the business that he hasn't been giving me."
GT Logistics also uses new technology in an industry in which even slight temperature fluctuations in the loading/unloading process can damage perishable commodities. The company has set up Web-cams in its chill rooms. A client in Tokyo can dial in via the internet and monitor the loading, unloading and preparation of his product. As well as reassuring the customer, the web cams help guard the company against potential claims for damage, which is a big concern in the industry.
The main markets for Turner’s service are hotel chains, importers and supermarket groups, but Turner will target anyone who is interested. Again, it is a matter of effective networking: “I‘m able to meet, remember and then use it. I go overseas, I play golf with these people, I go to dinner, and I look after them when they come to Australia. It’s about relationship building.”
The company’s emphasis on treating its customers as part of an extended family is mirrored internally. Turner talks frequently with his staff and says he is never afraid to get his hands dirty, which can include loading a truck or mopping the floors of the toilets. The open-door management structure rewards staff who discover ways to improve productivity or save money.
There are now three Australian warehouse operations on the eastern seaboard, including the Sydney head office at Matraville, and a new Sydney warehouse planned for 2003 at Botany. Turner says his goal is to provide state-of-the-art facilities that serve as one-stop shops for exporters.