Join us in this exclusive Q&A session conducted by Chris Porter with MD Steve Wood, talking about Kukla UK’s captivating journey from its inception to the present day. Discover the key factors behind Kukla UK’s success and the strategic decisions made in response to Brexit, including creating an “in-house” customs clearance facility. We also gain insights into Steve’s personal life and how he unwinds and explores his interests beyond the demanding world of logistics.
Steve, considering Kukla’s journey from its inception to the close of 2023, could you provide insights into the obstacles faced and the notable successes experienced?
For a business entering its 8th year, the stability and diversity of our customer base across the beverage sector are a testament to our enduring success. I am proud of our team of 45 members strategically positioned between our Mountnessing head office and the Kukla Customs Division (KCD) in Folkestone. We owe our achievements to their expertise.
As we face the encounters of 2024, aligning our goals with the cost-cutting needs of our customers is paramount. Our key to achieving this lies in continuing to cultivate robust relationships, mutual commitments and service stability with our carrier partners. This ensures a consistent delivery of value while effectively managing risks.
Looking back on 2023, the growth in our client base and orders contributed to a strong year, with a notable year-on-year increase in turnover and orders by 19% and 15%, respectively. This achievement is a testament to our team’s unwavering dedication and I take immense pride in Kukla UK. I am excited about what lies ahead.
A competent, experienced forwarder plays a vital role in ensuring the stability of the supply chain.
From left to right, the team representing Kukla UK at the London Wine Fair in 2023: Managing Director Steve Wood, Business Development Manager Chris Porter, Commercial Manager John Hay, Operations Director Chris Pryke, KCD Director Martin Jacobs and Commercial Director Lynda Simms.
What is the most important aspect of your business necessary to deliver the service upon which you and Kukla UK have built your reputation?
Chris, it’s a question involving some complexity, but the word that stands out is ‘experience’. Shippers rightfully demand value for their money. Our management team, having worked in the industry for quite some time, understands and respects the need for a high level of customer care and meeting or bettering service level expectations.
While advancing technology holds significance, the impact of Brexit and the pandemic has underscored that our business revolves around people. A competent, experienced forwarder plays a vital role in ensuring the stability of the supply chain. Additionally, we emphasise ‘accountability’ and a commitment to going the ‘extra mile,’ principles that are deeply ingrained in our business.
Our preparations for ‘Brexit’ commenced in 2018, marked by our AEO accreditation and establishment of the Kukla Customs Division (KCD), positioning us well for the changes.
Adjusting to the post-Brexit landscape has undoubtedly been a monumental challenge for UK businesses involved in importing products from Europe, with 2021 presenting the most formidable year for freight forwarders. In the three years since, how would you assess the extent to which we have settled into a post-Brexit norm?
It was an extraordinary period that truly put our resilience to the test. From Kukla UK’s standpoint, our preparations for ‘Brexit’ commenced in 2018, marked by our AEO accreditation and establishment of the Kukla Customs Division (KCD), positioning us well for the changes. However, two significant obstacles slowed the transition: market readiness and the onset of the Covid-19 pandemic.
During 2023, we witnessed a progressive rebalancing in the UK-EU market, with short sea, intermodal and road capacity on the rise, perhaps expedited by the global recession. Despite this, the UK beverage sector has effectively navigated through Brexit, with Customs formalities now an established part of the process seamlessly blending with the evolving market forces.
Timely and accurate declarations are paramount, considering the potential costs associated with vehicle waiting time, quay rent, demurrage and detention that can swiftly accumulate as unbudgeted expenses.
In response to Brexit and a surge in customer numbers, Kukla UK made substantial investments, including relocating its Head Office to larger premises and expanding staff. The establishment of a second office, KCD in Folkestone, was specifically geared towards managing and aiding Kukla customers in navigating the administration of their HMRC fiscal responsibilities in a post-Brexit world. How pivotal has creating an “in-house” customs clearance facility been for Kukla UK?
The establishment of KCD has been and continues to be, extremely pivotal. At the time and it is still essentially the same today, recruiting trained Customs brokers posed significant tests. This is because timely and accurate declarations are paramount, considering the potential costs associated with vehicle waiting time, quay rent, demurrage and detention that can swiftly accumulate as unbudgeted expenses. For us relying on an outsourced third party introduced substantial risks and one we were not prepared to take.
As the MD of a successful specialist forwarder, the role demands extensive hours and expertise. How do you unwind when afforded the opportunity to do so and what are your interests outside of work?
All things sport, Chris. While I used to play a bit of golf here and there, these days, I find joy in being a spectator, particularly watching our eldest grandson in action with his local under-7 football team.
As the leader of Kukla UK, is there a message you would like to convey to the readers of Kukla News as we embark on this New Year?
Thanks, Chris. It’s pretty straightforward. We are in good shape and dedicated to building a strong reputation. I wish everyone a Happy New Year and very best wishes for 2024!
Steve, once again, many thanks for taking the time to speak to Kukla News.
