UTi Turkey: Turkish delight as growth prospects look sweet

UTi is in the business of global integrated logistics, offering some of the world’s biggest companies the transportation and warehousing services they need to get their products to its destination safely and effectively.

Careful planning and attention to detail are essential in achieving this goal. This results in the customers receiving the best possible service as UTi takes a close look at their individual requirements, including a review of their competitive environment and current supply chain arrangements.

This thorough approach is replicated in its operations around the world. U.S.-based UTi has about 400 offices and 200 logistics centres, covering a total of more than 24,6 million square feet, in 62 countries. In addition, UTi has 140 exclusive network partners in other 82 countries.

UTI TURKEY
With the benefit of a location that is close to both Asia and Europe, UTi Turkey is poised on the brink of greater growth.

Established in 1999, UTi Turkey operates from four sites, including Mersin, Izmir, Ankara and Istanbul, where it has a 70,000 sq feet logistics centre. UTi offers a wide range of transport solutions and services, including air freight, ocean freight, and road transport and warehousing, which has attracted well known global clients as well many local ones.

Vice President of Balkans and Central Asia region, Abdullah Yesil, has witnessed a number of significant changes within the industry over the last decade. Some of these have presented substantial challenges, but the company has overcome obstacles and celebrated many successes.

One of the main hurdles initially was factoring in varying customs requirements to their plans, as Yesil explains: “When we first started up, there were no nationwide compliance procedures in Turkey. Customs requirements differed from one area to another, so there was no consistency. To sum it up, it was a headache.”

Fortunately progress has been made since then. “Thankfully, customs requirements have now been standardised and therefore far easier for us to factor into our planning. It is no longer quite so time consuming,” he reports.

There are other dilemmas to contend with, however. “The fast moving pace of global business is an ongoing challenge,” says Yesil. “Markets and their requirements shift constantly. We have also seen a trend emerging where some clients are offering shorter term contracts. This can have a knock on effect on our investment plans.”

But he also sees much scope for growth. “There are many opportunities for us, due to our location at the crossroads between Europe and the emerging eastern Europe and Middle Eastern markets,” Yesil observes. “We expect this to have a positive effect on Turkish ports and on our business over the next few decades.”

He also believes that a restructuring of the market could be beneficial. “There are many service providers within the logistics market here who are operating independently. It could be constructive for us all, to collaborate.

“We are hoping to partner with some individual service providers such as international trucking companies, domestic delivery companies and warehouse operators, integrating their services with ours, so that clients benefit from a seamless, one stop shop operation.”

ADDING VALUE TO THE SERVICE
UTi Turkey has around 100 employees, whose specialised skills and knowledge are key to the success of the business: “We prefer to hire people with university degrees in social and administrative sciences or with specific logistic qualifications,” says Yesil.

He fully acknowledges the substantial value the team contributes to the overall UTi service. “Our people are the biggest asset we have,” he emphasises.

“We have a very strong team and we have had lots of positive feedback about our focus on and commitment to developing good customer relationships. Our clients often comment on our outstanding ability to listen very closely to what they tell us and act on it, to make sure we deliver exactly what they need.”

THE FUTURE
Although turnover reached an impressive level last year, UTi Turkey has not been immune to the effects of the recession. “The economic downturn put a lot of pressure on us last year,” acknowledges Yesil, who has nearly 20 years’ experience in the transportation and logistics industry.

But they focused on their key competitive advantages, of good client rapport and a highly skilled team to maintain their position. “We found successful ways of mitigating the impact of the recession on the business,” says Yesil. “We worked hard at further strengthening our client relationships and we also made it our goal to keep all of our employees on the payroll, rather than making anyone redundant.”

And the company is optimistic and positive about its next steps: “We are planning to

grow,” says Yesil. “We have set growth targets as per our journey called ‘Client as One’, for the next five years.”

He also estimates that turnover in the year head will rise significantly and is clear about the way forward: “We will continue to differentiate itself from the competition through our focus on client relationships and tailoring solutions to clients’ needs.”

New services are being launched, including the recent “gateway” solution, where cargo originating in Hong Kong and Shanghai is routed through UTi’s Istanbul hub, on to destinations such as Azerbaijan, the Czech Republic, Croatia, Hungary, Poland and Greece. The goal is to improve clients’ supply chain management, by reducing cost and transit time.

Yesil also appreciates that the size and structure of UTi as a whole is advantageous to their ambitions for the future, as he states: ‘Being part of such a large corporation helps us secure global clients’ business. We find they prefer to buy from companies who have a similar global presence.”

He concludes: “Our philosophy now and for the future, is to work as a team, to deliver outstanding performance, service excellence and value, so that clients continue to view us as the logistics company best suited to their needs.”

FACTS AT A GLANCE
COMPANY NAME: UTi Turkey
VICE PRESIDENT OF BALKANS AND CENTRAL ASIA REGION: Abdullah Yesil
OPERATIONS: Global logistics
HEAD OFFICE: Istanbul
EMPLOYEES: 100

www.go2uti.com