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Interview with the Directors

Gary Higgins and Andrew Ramsbottom have both previously held senior management positions in traffic signalling and new product development businesses. Working as Joint Managing Directors of the TSEU Group, they have overseen a sales growth from £2 million to approaching £20 million in the last seven years.

Key drivers - an interview with joint MD Gary Higgins

What do you think are the key drivers in ITS/Traffic Management at the moment?
The marketplace is about responding to much bigger agendas these days, including the environment and energy efficiency, as well as the continuous need to deliver cost effective, high quality services. TSEU is leading the way as it really grabs the environmental agenda.

Can you give me some examples of this in practice?
The introduction of our new 3G Energy Efficient LED head has taken the market by storm. For our clients we can deliver a 70% year on year saving in energy, at a time when these costs have gone through the roof for local authorities. With longer warranties and lower maintenance costs it is hitting all the right agendas.

What else is happening that is shaping the TSEU offer?
All the major contracting opportunities are going to longer-term relationships. Our recent contract wins in Kent and Cambridgeshire have been for 10 year terms. In fact the Birmingham PFI contract for which we are short listed down to the last two, is for 25 years.

The emphasis on the quality submission is growing and this involves dealing with many other critical aspects of the business including attaining environmental standards, actively delivering progressive policies on equality and diversity issues, as well as partnership working.

Looking to the future how do you see the prospects?
At TSUK we are very optimistic. We have streamlined our business and our offer to meet the market requirements, as evidenced by our recent successes. We also believe that the market is beginning to understand the need for 'Intelligent Transport Solutions' and what this entails. The successful companies of the future will be offering end to end services and products that are smart and can deal with major issues such as congestion.

Delivering operational efficiency - an interview with joint MD Andrew Ramsbottom

Delivering operational efficiency in a price conscious marketplace must be a real issue for businesses like TSUK?
At TSUK we start with the basics. Have we got the right products, at the right price and readily available for our customers? If we haven't then what are we going to do about this is the question.

So what has TSEU done in this area over the last year?
TSEU has completely reviewed its supplier base and moved to a consolidated position. This has enabled us to increase quality and also given us the time to build longer term relationships. We have also been working with our suppliers to deal with major issues of importance to our customers such as the environmental impact of our products, waste disposal issues and the customisation of product to meet local requirements.

How has this been achieved?
TSEU has been unique within the traffic sector in driving radical operational change through the business. From a position of fully integrated manufacturing and local supply, this position not being dissimilar to other key players within the sector, the business needed to cut costs and increase flexibility, in order to survive. In any manufacturing business the formula can be relatively simple. Having the right products is fundamental, however ensuring design for manufacture with the opportunity for latent differentiation is critical to operational efficiency, in a market which is demanding lower lead times and costs.

Manufacture and supply chain management is the second key factor for a recipe for success. With a target to grow the top and bottom line, business simplification and focus on core competences became an absolute necessity. Over a period of 18 months the business followed an industry trend of product re-engineering and outsourcing.

Defining core competences can often be the stumbling block, however the TSEU management team pursued their belief that key skills lay in their knowledge of traffic principles and not in the manufacture and assembly of product.

What do you find separates TSEU from its competitors?
We believe it is our ability to respond to customer demands rather than continuing to deliver the same old products. Critical to this has been the role of our Research & Development facility at Fareham. This has always been at the core of our business and gives TSEU the capacity to take on board customer comments and requests and turn these into real product.

In addition TSEU is leading the field in its development of highly sophisticated software products such as Strategic Traffic Management (STM), its Remote Monitoring Units and its new Emulator. All of these products have been trialled with TSEU customers, feedback encouraged and before final product versions are brought to market.

Where do you see the future with regard to operational efficiency?
There will be a continuing drive to cut costs and to manage the supply chain. This will be a complex task as the sector is demanding higher specification products alongside the need to satisfy the huge environmental agenda that is emerging.

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