GIVING OUR VERY BEST

GIVING OUR VERY BEST

RICHARD BOLTE JR, president and CEO of BDP International, says that to succeed, it is very important to listen to customers and then go that extra mile to give the best services possible. He chats with Lee Kok Leong on this and other topics in a wide-ranging interview.



BDP International is one of the leading privately held freight logistics and transportation management firms based in the US. It operates freight logistics centers in more than 20 cities throughout North America and a network of subsidiaries, joint ventures and strategic partnerships in more than 120 countries. The company serves 4,000 customers worldwide. BDP provides a range of services, including ocean, air and ground transportation; lead logistics process analysis, design and management; export freight forwarding; import customs brokerage and regulatory compliance; project and energy logistics; warehousing/consolidation/ distribution; and Internet shipping transaction/tracking management systems.

Q: What are BDP’s plans for Asia?

A: We have just opened a Vietnam office about 18 months ago. In terms of overall footprint in the region, we are pretty comfortable that we are in most of the countries that we need to be. And we have the right kind of staff and support functions. We have been in the region since 1994. So certainly, Asia is not new to us and during that time, we have established ourselves quite strongly in places like China, Singapore, Hong Kong and Taiwan.

Q: And the role Singapore plays in BDP’s network?

A: Singapore is our regional headquarter and it is extremely important to us. As you know, we have a very good reputation in the chemical industry and Singapore is a natural hub for that. And if you combine the fact that it is our regional headquarter and its role in the chemical industry, Singapore becomes one of the most important markets in Asia for us. We have 130 staff in Singapore.

Q: Looking at the crises that are happening in Europe and the US, what impacts, if any, are there on Asia?

A: Well, the good news is that it won’t be as bad as the previous financial crisis because things had changed over the last few years. Plus I don’t believe it is going to get to that level. If there is an actual Greek default and fear grips the market, it could have a potential impact here. But generally, I think the Asian market is more resilient now and local domestic markets have grown over the last three to four years. So there is less dependence on the international market. I think the markets here are much stronger than they were. They are less influenced by what goes on in the west. But still, the west is a very important trading partner and you can’t discount the fact that if there are severe economic issues in the west, then there are of course going to have impacts here. I am not anticipating that by the way. Call me bullish. I think we’re probably like Japan. We’ve entered a period of slow growth or no growth in the west. I think we’ll figure something out. Obviously in the US, we have problems with unemployment, low GDP growth and of course you’re well aware of everything that’s going on in Europe. So these two things are definitely going to be a drag. I don’t personally believe we’ll see a double dip recession. I just think we’re going to see a period of very slow growth.

Q: You think the long term growth in Asia is sustainable without being overly dependent on the west?

A: That’s a great question! I think there will always be some dependence. I don’t know if it is possible to sustain that kind of growth without the west. Now, I wouldn’t say that it will be possible but certainly you can grow more independently over time. As China and other Asian economies rise up, you are going to create more natural trading partners and there’ll be less dependence on the west. No dependency? No.

Q: What factors set BDP apart from competitors?

A: It starts with the culture. We’re a family business and we’re very proud of that. I think it really gives us a tremendous foundation to launch our solutions. If you look at BDP, we’re a very unique company because 75 percent of our revenues are solutions-based and only 20 to 25 percent are from freight products. We’re more like a consulting type operation helping our clients solve difficult supply chain problems and providing solutions that work for them. And that fact alone makes us unusual. The other part of our competitive advantage is our technology that still creates a wow factor. So our BDP smart products powered our organic growth and enabled us to take market share. And then of course the family business creates a very harmonious atmosphere where we’re able to attract and retain talent. At any time you’re running a service business, that becomes paramount. I think family businesses are a bit better at doing that. There are many people with us for 25 to 30 years. I think that is a tribute to the type of nurturing culture that we try to promote. To the Bolte family, this is not just business, this is family. And we try to create that feeling throughout the system.

Q: You are working with five other brothers who are also involved in active management. How do you manage?

A: Have tremendous clarity around roles. If you don’t have complete and

clear lines of what you’re doing, then you’ll get in trouble. We spend a lot of time in succession planning. After my father passed away five years ago, the things that we planned on and the things that we worked for, came to pass. It is mainly on role clarity so there wouldn’t be any jealousy. It paid off , all the work that we did. The other part is that I’m the oldest brother. I’ve been president of the company since 1996. That has traditionally been my role and it is very clear that is the role the family asked me to play. So that really helped in the succession to make sure there were no mis-steps. And having relationships help too. Remember we’re brothers too. We socialize together and outside of work, we have very good relationships.

Q: I assume you have no plans to take your company public?

A: We don’t need to take it public. We don’t need the capital. In our current non-asset model, we’ve been able to run the business for 45 years simply by reinvesting the profits into the company. As long as we remain true to the non-asset based approach to the market, then the capital structure of the company is fine. If we need to go to a more asset based approach, then I suppose we’ll have to look at different capital structures including IPO. But right now, I wouldn’t want the headache of running a publicly traded company. I like the tremendous independence of being a president and CEO of a private company because I only have to answer to my partners. Answering to the markets I think sometimes mis-focus companies. It tends to make you think in the shorter term and also affects the speed and flexibility of decision making. In the economic downturn, if you saw how well we performed coming out of it, it was because of the speed and flexibility with which we reacted to the market.

Q: What factors do you think contribute to BDP’s success?

A: I think we are positioned ideally to ride the waves of globalization. We made investments in Asia when others were not paying attention to China, Singapore and Hong Kong. These were our first three markets. The second factor is, no questions, our technology. Our solutions provide just the level of visibility that’s simply not available in those markets. As we come to new markets, we not only deploy our creativity in terms of our solutions but our technology really helps us in a rapid period of expansion. And then of course, once you start growing you create good career paths for your people so you are better able to attract and retain. A combination of these factors powered a decade of growth. Our compounded annual growth rate over the last 10 years was 13.31 percent. Not even S&P companies can keep up with that kind of pace. I think the markets validate our solutions as we give tangible and real values. The markets validate us and bless us with high rate of organic growth.

Q: What is your philosophy on talent management?

A: I call staff personally. If I’m at my office, I’ll pick up the phone and call them. We have an internal program called Recognize Excellence. Out of the blue, I’ll call and talk to somebody, maybe in Europe, and thank them for their excellent efforts. I’m very big on personal touch and staying in contact and I think the best way of doing that is through a phone call. Later today, I’m going to give a town hall meeting to our Singapore office. I do a tremendous amount of face to face communication with employees. I think that’s the only way to communicate because it’s that face to face that really makes the difference. Inviting people to your home for dinner, make sure that you’re engage at the social level, doing the little things and giving recognition go a long way. I think family business is more attuned to that sort of thing. You’re coming into our family and not just coming into a company. I also remembered growing up and working and feeling like I was excluded from stuff . I always wondered what my father and all his advisors were up to. I never wanted people to think that we were “up to” anything so when I became president, I really focused on the way that we communicated as a family and it really hit on to this personal touch. So if you think about it, how much effort does it take to pick up the phone and call a couple of people?

Q: In your opinion, how can employees improve themselves?

A: In the new global world you need to be bolder and more assertive. As a matter of fact, when young people ask me what is the one thing they can do to further their careers, I always say take public speaking. It will give you the confidence no matter what job you have. The ability to articulate a position very well is going to be a huge factor in your success. If you’re just a wallflower, nobody knows you. But if you’re somebody who can get up and feel very comfortable in your skin, a natural talker, people will automatically think you’re smarter. As a result, people who are more eloquent and confident get opportunities. If you’re very proficient but very quiet and always stay in a corner, sometimes you miss the opportunities. The other part is networking. If you’re going to be successful, you need to network up, to the side and down. And sometimes, networking down is as important as networking up. I think in BDP, you can say definitively we treat people like we want to be treated. I always have tremendous respect for folks that work for us. They work very hard, they do a good job and they don’t deserve to be talked down to. Personally, my style as a CEO is nurturing. I think the more nurturing a CEO is, the more he is going to be successful compared to the domineering one, especially when facing the new younger generation.

Q: What personal attributes do you think contribute to your success?

A: I always thought that having a certain amount of modesty and humility is a good approach. I kind of have a self depreciating sense of humor. I treat people like I want to be treated. I’ve always required that of the management team. I try to be down to earth, and keep my doors open and have a nice easy-to-talk-to kind of style. And I also adopt the nurturing approach as it helps me to look at myself not as a domineering and screaming leader but as a coach and mentor to help you get to the highest possible level in the company. I have a tremendous eye for talent. I kind of intuitively know good people and I will try to bring them into the company. You must have a gut feel for people. I can usually tell within four to five minutes if I’m onto somebody really good.