Cash Flow and Collaboration

It was a normal day; up at the crack of dawn, out of my apartment by twenty after six and down at the on-site Gym 'n' Swim, ready and eager for doors at six thirty.

It's like a ritual, three weeks in the swimming pool and the fourth week pounding the gym; at my age you have to keep your health in check - do the things you like or even the things you hate, but eventually the pain turns into fun and fun turns into real pleasure. Or am I addicted?

So I'm there in the pool on my 30th length, at mid-point. Another 30 to go but I feel good, I feel strong, focused on technique trying to keep my timing on my breathing, getting faster by the second, competing against myself and anybody else in my way. They aren't aware but they are my competition. I'm the first in the pool and the last of the early-birds to leave. I can't show weakness - I cannot give in and be defeated.

Beijing, here I come, just like an Olympic swimmer on the final length. Goggles steamed up now, awkward waves masking my vision but the pressure is on to beat the clock. The crowd's going wild with metres to go and seconds to spare. Going after the world record with the end in sight. A quick glance to the left and right and I'm clear, where is the competition? In my head - I'm an Olympic champion with a personal best, but I clock the time and it's time to go.

This is the usual start-of-the-day routine for me on four or five days a week depending on my work schedule. It allows me to stay one step ahead of the game. What I mean is, it allows me to take control and be ready for action when the situation arises. It allows me to plan through and prepare for a hectic schedule, it gives me the inner strength and confidence to tackle any messy situation or any unforeseen problem that may rear its ugly head, because, in my line of work, you never know what you're gonna get from one day to the next.

I'm on the move now, on the train scrolling through emails on my Blackberry, answering what I can and addressing the important issues. Things seem to be going so well, but then my cell rings. I didn't take the call. I'm kinda fussy like that. I don't think it's appropriate to air your business in public; you never know who's listening and you never know who you're annoying, so as a rule I just don't entertain it. I intend to return the call as soon as possible once the crowds have gone. However, if you withheld your number and didn't leave a message, there's no chance I'd call you back. Well it couldn't have been that urgent, buddy, now could it? On this occasion the calls kept coming, so I reached into my pocket and had a look to see who it was.

It was the office downtown. It was important, it was urgent. The phones were going crazy, the customers were getting angry, my team was coping - but only just - given the circumstances: Our service provider in London, England had placed our account on "STOP". Stop! What? Well that could only mean one of two things. Either that we hadn't paid our bill or that UK HMRC had our consignments under investigation and had detained our shipments. I hoped it wasn't the latter, and to my relief, it wasn't.

I know, it's nothing to be proud of; we have a little cash flow problem. So little that our account is now on hold until immediate funds are transferred into the UK account and the balance is brought up to date. Well, obviously I was aware of the cash flow problem, but I always maintained that we paid our suppliers and service providers on time, and especially our overseas associates that we rely upon heavily - their location, local knowledge and experience is paramount to the survival of our business. What I mean is …. well, let me explain our business and what we do.

We are international freight and courier forwarders, based in Philadelphia, USA. Our clientele is vast on the global circuit and the majority of our business is destined for the UK and across Europe. We send our consignments into the UK but we do not have our own offices there as this is far too costly for us. So we use partners to provide the services that we lack, but which are essential to the business. This particular service provider arranges the customs clearance and onward forwarding delivery on our behalf. They invoice us daily, providing full tracking details. Their standards are high and we have no complaints about their service. I think they could be a little cheaper, but hey, I'm in no position to rattle their cage because they get the job done, just as we need it. Because they maintain the relationships with UK HMRC and they understand our requirements and our own customers' requirements in turn, we allow them to communicate with our customers directly, who then gain the full benefit of their expertise.

But there is a problem and I have to fix it. I need to take stock of the situation and put the wheels in motion. Am I embarrassed? Yes, but I'm more annoyed with myself that I allowed this situation to run out of control. But, thanks to my swim, I'm cool and calm, and I gather my thoughts as I need to make that all-important phone call to London, England to exchange words, to apologise, but most importantly, to try to get things back on track. So I make the call and they were having none of it. I didn't take it personally - business is business, after all - since I didn't really have a leg to stand on. All that really mattered to me at that point was that I had a lot of screaming customers wanting their P.O.D's from consignments that should have been delivered yesterday, so I knew I had to grovel and plead, give assurances and put measures in place and get those funds transferred immediately.

Customs Clearance Limited are a very fair company. In all the time we've used their services they've been upfront with us and very transparent. We know where we stand with them that's why I'm so disappointed with myself in allowing things to go this far. I couldn't pay all that was due as cash was really tight. There were payments coming in, but not quickly enough and at the same time I had staff wages to pay, so I had to raise the funds from my personal finances to fulfil my commitment and obligations. I managed to negotiate a deal that allowed me to pay off in instalments and I'm grateful for the support and understanding they gave me. Even though they had their own concerns, they still valued us as a customer, which I really appreciated, given the circumstances.

Now, I've heard stories of companies going into liquidation due to mismanagement of overseas partners. We could have been another one on the list. Customs Clearance Limited took the time to learn of our situation and offered appropriate understanding and assistance. Their initial approach was to protect their own business by putting our account on hold - and that's understandable - but funnily enough, that did us a huge favour. I couldn't see it at the time but I do now. Now we have payment structures in place and the service continues to be excellent. The wheels are turning again and my customers are happy. Thank you Customs Clearance!

13th May 2008

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