12
SOUTHERN TECH 100
TM GreenTech – delivering ‘smart'
full-circle supply chains GreenTech Distribution is Britain's fastest growing private company – it's also a surprising company in modern business terms, writes John Burbedge
The High Wycombe-based ‘smart' wireless device distributor topped the 2015 Sunday Times Virgin Fast Track 100 league following an average growth in sales of 248% per year to £48.9 million last year.
I was privileged to be invited by Christopher Dean, Barclays head of TMT for the South East, a sponsor of our Southern Tech 100, to attend a business meeting with its client GreenTech.
Not only did we discover a company that has adopted 21st-century technology and taken links out of sector supply chains with its disruptive modeling, but also one that adheres closely to traditional business tenets such as controlled growth, financial prudence, and credible trusted customer relationships.
‘Control', ‘prudence' from Britain's fastest growing company? How are they managing that? It appears the short answer is: ‘Very well.'
Richard Crawley is a hands-on CEO with significant business drive and financial acumen, gleaned from working with Peter Jones of Dragon's Den. “Things have been tight, but I've never lost money in any single trading month in my past 10 years. I treat business monthly. I'd 'have kittens' doing things quarterly or half-yearly.” GreenTech tends not to have long-term creditors. Instead, it gains discounts by paying invoices early.
MD Clive Merrick, a self-confessed ‘business farmer', has an astute focus on operational efficiency: “I'm always aiming to add value for our customer, making sure we deliver all we say.”
Together they lead a loyal experienced management team of 30 with proven talent and similar ethical business values. The business runs with a ‘family' culture of trust, transparency, and team enjoyment of their work.
It may help deliver the virtual world, but the GreenTech business is solidly grounded in business realities.
So, how has GreenTech grown so rapidly?
It wasn't a Eureka moment, but sector knowledge, industry experience and personal contacts that enabled Crawley, Merrick and their hand-picked team to maximise their post-recession opportunity of recycling used mobile devices.
Distribution became key and ultimately they developed a direct, fully compliant, full-circle distribution service for the digital devices of OEMs, network providers, and offering major brands such as Apple, Samsung, Google, HTC and LG.
From left: Barclays relationship director Chris Cole and head of TMT for the South East Christopher Dean, GreenTech's Clive Merrick and Richard Crawley
Ongoing consumer and business demand for new ‘smart' wireless devices, upgrades, returns and repairs has fuelled GreenTech's tripling of its turnover in the past three years and its rapid growth – funded by the company's re-investment of its previously earned profits.
Full-circle distribution? GreenTech has used technology to devise efficient and automated processes for delivering products from original manufacture right back to component and materials harvesting. GreenTech now securely handles millions of ‘smart' products, providing reuse and recycling services – from new to returned, refurbished, reconfigured, data-wiped, decommissioned, disassembled or destroyed.
GreenTech gains income from every part of the product life cycle.
Its end-to-end distribution platform and systems also helps its major player clients with their e-commerce, security, media marketing, product supply continuity, and customer service capabilities.
And future growth?
Strategic and sensible one suggests. While highlighting GreenTech's latest contract win, partnering another major mobile network operator, Crawley stated: “I've seen many businesses grow too quickly, bringing in too many new people and then the company culture disintegrating. We have a 10-year plan in place, but we simply aim to replicate what we do and grow through well-controlled incremental growth.”
Barclays is a trading name of Barclays Bank PLC and its subsidiaries. Barclays Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register No 122702). Registered in England. Registered number is 1026167 with registered office at 1 Churchill Place, London E14 5HP. June 2016.
businessmag.co.uk
The views expressed in this article are the views of the author alone and do not necessarily reflect the views of the Barclays Bank PLC Group nor should they be taken as statements of policy or intent of the Barclays Bank PLC Group. The Barclays Bank PLC Group takes no responsibility for the veracity of information contained in the third party guides or articles and no warranties or undertakings of any kind, whether express or implied, regarding the accuracy or completeness of the information given. The Barclays Bank PLC Group takes no liability for the impact of any decisions made based on information contained and views expressed.
THE BUSINESS MAGAZINE – THAMES VALLEY – JULY/AUGUST 2016
Company: GreenTech Distribution CEO, Richard Crawley; MD, Clive Merrick
Origin: Founded 2010 Southern Tech 100: Ranked 20
Specialism: Fast, cost-efficient full-circle distribution of ‘smart' devices
Main business focus: B2B, partnering with global brands Turnover: £48.9m
Employees: 30, plus warehouse staff as required
Location: High Wycombe (HQ), Distribution via UK and European centres
Merrick also mentioned 18 months already spent gearing-up for growth with complementary sector investments in European businesses, and an eye on India.
GreenTech may well be a full-circle distributor, but it's certainly not running around in circles.
Advice from GreenTech on successful growth
Financial control is key, says Crawley. Keep a strong balance-sheet. Ensure good cashflow. “Not being able to pay your bills is like looking at a heart attack.”
Identify the quality customers that you really want to trade with. “You can live off the crumbs of a giant. Just find the biggest giant.”
Don't take on every deal on offer. Don't lose valued customers that you have already got. De-risk your issues: insure against debt, stock, liability etc. “I want to be able to sleep at night. I have spent 10 years building up my business. Why take unnecessary risks?”
Don't over-promise, advises Merrick. “Structure yourself to make sure you do deliver otherwise it might be the last order you will get. But, try to solve your customer's hard problems that others don't, won't or cannot.”
GreenTech:
greentechplc.co.uk 01628-527584
Barclays:
christopher.dean2@
barclays.com 07775-546703
chris.cole@
barclays.com 07775-540109
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