A train of ideas

For Andrew Tinkler at Eddie Stobart Ltd, thinking out of the box is the only way to run a business. And he has the results to prove it, including an integrated transport system that saves energy, contains costs and ensures the optimal transport for the job at hand.

Enlarge photo
Andrew Tinkler Photo: Phil Sampson

“When I moved into Eddie Stobart in 2004, we were a haulier, moving goods by road. Today, we’re a road-rail operator.” Andrew Tinkler, chief executive.

TEXT: PHIL SAMPSON

Not every company chief executive has a train set in the corner of his office, but Andrew Tinkler is not your average boss. Since starting off as an apprentice in the building trade he has worked his way up to become one of the UK’s top businessmen. Today he leads Britain’s best-known haulage firm, Eddie Stobart Ltd.

The vision is an integrated transport system

Tinkler’s business empire covers interests in road and rail. And if things go according to plan, water will soon be added to the list. It’s all part of his vision for an integrated transport system, in which Eddie Stobart plays a leading role. “It’s the way forward, no doubt about it,” says Tinkler.

“But to achieve an integrated transport system you have to be prepared to think out of the box. When I moved into Eddie Stobart in 2004, we were a haulier, moving goods by road. Today, we’re a road-rail operator.”

Saving fuel is key

The rail part of the business began when the company introduced a daily train service between central England and Scotland for supermarket retailer Tesco. Tinkler says that the company took 28 trucks off the road, saving 2.1 million litres of fuel a year. “That’s the equivalent of taking our entire fleet of 1,000 trucks off the road for 2.2 weeks a year,” he says.

Tinkler has purposely sought an in-depth understanding of the costs facing his business. “We used to price jobs by the mile, but I felt there had to be more to it than that, as every contracat we held was different,” he says. “We took a long, hard look at the risks involved in running transport and developed a business model based on hourly running costs.” Four key factors emerged: loading time, running time, unloading time and non-productive time – in other words, running empty.

Improve utilisation

The next stage was to investigate how to do things differently. Introducing rail service for Tesco was part of this, but the really different part was the concept of shared transport – specifically clients sharing transport provided by Eddie Stobart. “The train runs to Scotland for Tesco and returns with loads for other customers,” says Tinkler. “That adds an extra dimension to our efficiency in operation and minimises our non-productive time.”
The shared transport concept works in terms of road transport as well, Tinkler says. “We back-load from other customers whenever possible,” he says. “In just two years, this has taken our utilisation from 71 percent to 82.5 percent. My target now is 90 percent.”

Introducing new services

The next stage in Tinkler’s integrated transport plan will be to introduce a waterborne service. Another company within the Stobart Group currently operates a container terminal near one of Britain’s west coast ports.

“The planning application for a rail link between our facility and the dock is already in,” Tinkler says. “The aim here is to provide a complete service that will see feeder ships from ports such as Rotterdam carrying goods for our UK import/export customers.”

For Tinkler, air transport is a little further away. “That’s for the future,” he says. “Today our focus is on road, rail and water.”

But whatever the transport mode, at the core of Tinkler’s plans are the people in company. “There is a huge and continual effort to improve the service we provide,” he says. “This involves all our staff – drivers and traffic planners alike.

“It is essential that everyone in our team fully understands the nature of our business,” he continues. “That’s vital to our on-going development and success.”

10 tips for transport operators

  • Identify and cut out waste.

  • Get your paperwork right.

  • Work closely with your customers and introduce the shared transport concept to them in order to maximise utilisation.

  • Look at your carbon footprint and improve utilisation. That’s where the quick gains are.

  • Eliminate risks from your cost base as much as possible.

  • Train your people to the highest standard.

  • Invest in IT.

  • Beat rising fuel prices together with your customers.

  • Build partnerships with suppliers.

  • Make sure you pick the right product – truck, trailer, whatever – for the job.