Graeme Hanna and Mark Johnston are in the communications business
but in this fast -growing sector theirs is not a company one would
ordinarily associate with the world of telecoms and the internet.
Because Hanna and Johnston run a transport company which is quickly
becoming one of the most sophisticated global logistics businesses.
And by logistics they don't mean simply moving goods from a-b quickly
and efficiently- they also mean building a team of expertise, which
supplies e-commerce solutions to logistical problems. This is what
they have done with their own business; designed and constructed Internet
software which acts as virtual warehousing for some of the world's
top companies including Nortel here in Northern Ireland.
IFS
is forming virtual partnerships with companies and their double-digit
growth is proof positive that they are getting it right. It is software
which has revolutionised supply chain management leaving concepts
such as 'Just in Time' in its wake and as Johnston points out, making
it more like 'Just in 15 minutes'! "What we've done is develop a system
which holds inventory for companies near their manufacturing base
but is not actually part of their balance sheet", he said. "So when
they actually need something they can log onto our web site, order
and have it delivered as if it was coming out of their own stock room
when in fact it didn't. "At the same time a sequence of events is
triggered which tells the supplier to replenish the stock, raises
an invoice and makes sure payment is made promptly for goods supplied.
"We move the goods down the road, so to speak, and the process is
complete without the company actually having any stock near their
premises but always receiving it to meet demand." This is a quantum
leap in the logistics world and advances a trend towards companies
outsourcing the parts of their business they don't consider as part
of their key competencies. And it is this which Hanna and Johnston,
at the end of the day, are set to capitalise on- the need for businesses
to do what they are good at and leave the rest to someone else.
Graeme Hanna, Group Managing Director, believes the growth of his
company, and the expertise it maintains, is good for Northern Ireland.
"What we're saying to companies around the world is that we have the
capability to run a state of the art logistics business which you
can bench-mark against the best in the world", he said, "and that
we have the necessary infrastructure to cope with any global company
who wants to set up shop in Northern Ireland. "At the end of the day
that is good for us and good for the country.
At IFS we are helping build a logistics infrastructure of global quality
and we have recognised and are addressing the challenges posed by
the web and e-commerce." Both Graeme Hanna and Mark Johnston, and
their Chairman and Founder, Walter Anderson can be justifiably proud
of what has been achieved at IFS. They have taken a company which
began in a caravan in 1967 and turned it into a world class operation
. To give you an example; they look after all of Nortel's logistical
needs and have a fairly unique relationship with Federal Express which
sees them acting as an agent for the American giant in Ireland. "Logistics
is the way of the future and unless Northern Ireland wakes up, other
areas of the UK and Ireland are going to take advantage of the fact
that we are not able to compete on a global stage," said Hanna. "The
move towards Logistics is being driven both by global consolidation
in many industrial and commercial sectors and by the desire for companies
to outsource their non-core competencies. "In this respect, using
the latest technology, and by investing our own time and money in
developing our own software we have produced a web-based Vendor Management
Inventory system and this is the future of our business." Indeed some
of our clients are not ready for the sophistication of the technology
IFS have developed but they see the benefit of climbing on board.
"A true Logistics provider provides all the expertise which is not
part of the company's core competencies," said Hanna..
With over a quarter of a million square feet of warehousing , a figure
which could well double by the end of the year, IFS are imposing themselves
fully on the international marketplace and all without the aid of
a single grant. With a group turnover of around £30 million IFS represent
a considerable Northern Ireland success story. They are adapting well
to the challenge of new technology and have in the process realised
their own core competencies. The company represents 64 per cent of
all imports through Belfast International Airport and of the top 200
exporting freight companies in the UK they were recently ranked at
32. They have partnerships with over 43 global airlines and operate
bonded warehouses that radically reduce the time it takes to get goods
to the marketplace as they pass through customs. It's an amazing,
almost paperless, operation and the company that employs 276 could
well see that rise to 400 if their development plans kick in as scheduled
towards the end of the year. Of course the proof of the pudding is
in the eating so what about this for a fact? If you deliver a package
to IFS by 2 pm and as long as it doesn't weigh more than 70 kilos
it can be delivered to a customer in the US or Canada by 10 am their
time, the next working day. Now remember, if you're a North American
inward investor this fact will be very important to you. IFS are making
the difference and helping to grow Northern Ireland's infrastructure
to make it a world class logistics location. Hanna and Johnston have
their fingers on the world's logistical pulse. That's good for IFS
and it's even better for Northern Ireland.
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