Girteka Logistics Manager on Crises, Difficult Solutions and Challenges After Reaching 1 Billion. turnover in euros

He started his career in another logistics company

At last week’s executive conference, EBIT E. Liachovich began the history of the company that he now leads from the beginning of his own career in the transportation sector.

He alluded to the meeting in year four, when he first worked for another small logistics company and worked there for a year, until it became clear that the company was planning to close.

“Still, I’m grateful for the start and for realizing that there are much more successful companies on the market. And for the fact that transportation is interesting, that you can work and earn money here, and for me, a student from Twenty years living in a bedroom, that was the most important thing at that time, ”he said.

Later, E. Liachovičius said that he decided to continue his studies and entered his master’s studies in transportation, which was a little coincidence and determined his later career at Girteka Logistics.

He said he saw a job offer on the college bulletin board, because Girteka was looking for a transportation manager at the time.

“After a brief conversation with Girteka’s director, Mindaugas Raila, I became the fourth employee of the company.

It was a real job for me, most importantly, with a very entrepreneurial, hard-working, demanding manager and a true entrepreneur ”, he said about M. Raila and described his new job at that time as a great achievement, although he believed that in the future they still face great challenges.

“Once again, at that time both Girteka and other Lithuanian transport companies felt very good, margins were high, there was a feeling that Lithuanian transporters form the base and dominate the transport market.

At that time, while studying at the university, we obsessively repeated to ourselves that Lithuania is also the main transit country between East and West. I started visiting my clients, I started traveling abroad, I started buying books on transportation. I realized that both the first and second things are not right. Lithuanian carriers represent only a small part of the transport market and, unfortunately, Lithuania is not a country between east and west. “My world has changed, but with the change of the world came the crisis of 1998,” he said.

We had to make tough decisions

As he said, at that time “Girteka” about 90 percent. The business volume was generated from shipments between the West and East, and soon, when the crisis broke, the company also felt a decrease in freight traffic, and customers stopped settling accounts with the company.

“So we were in debt to all the carriers, subcontractors and those carriers who demanded their money quite intensively,” recalled the manager, adding that at that time really difficult decisions had to be made.

“The easiest way would have been to close, but we chose another way: we really wanted to save the company and be in business, so we decided to work and pay off the debts.

Along with that decision, I received an offer to buy 10 percent. Girteka shares. At the time it was neither small nor big money, all my savings, but for me, a 23-year-old man, it seemed normal, so I invested with courage, ”said the manager, and what happened next simply called a miracle.

According to him, the company continued to receive orders, and after two years it was no longer in debt and could boast an excellent reputation.

“Then the ambitious growth began and we realized that our clients make us grow, so we decided to only work with direct clients. We follow that decision today.

I remember well when the Vice President of Logistics of one of the largest companies in the world visited us. I had an interview with him and over dinner I asked him if he had ever been to the Baltic countries.

He replied that he did not, and that so far he did not know much where he was. Then I asked him why he was here or visiting the carriers, and he said no, that it was his job to visit the most important partners and that we were the largest service provider for them in Europe. However, I also remember your other words that in Lithuania we do not appreciate what we have. Germany is proud of the automotive industry, France is proud of its wines, Switzerland is proud of its watches and we have fantastic international transport in Lithuania ”, he told conference attendees, clarifying that today Girteka Logistics together with other companies from transportation generates about 13 percent. Gross domestic product of Lithuania.

He also responded with his personal property

E. Liachovičius said that he became the director of the company in 2008 and assured that he remembers perfectly the day when the founder of the company moved from the headquarters and handed over the position to him, the new director.

It is true that his beginning as a new manager was not easy, because he came with new responsibilities in 2008-2009. crisis.

“It just came to our notice then. We keep buying tractors, we keep investing in growth because we believed there would be a recovery after every crisis.

Again, 2009 – Girteka wants to buy trucks, banks are not very willing to finance the transport sector. They asked for a personal property guarantee for the trucks they bought.

I remember a conversation with my wife. I tell him that he will have to go to a notary, have passports and sign a contract with the bank. But we did it very bravely because we believed in him. Mindaugas Raila and his wife did the same, ”said the manager about signing the personal property guarantee at that time.

Still, he said, that value paid off, as the company continued to grow and growth accelerated further after the crisis.

“It just came to our attention then. The company has doubled in 2 years, tripled in 3 years, and it was the most impressive period of my career.

In 2013, we crossed another psychological threshold of one billion dollars. Rotation of Litas. We were the biggest in Lithuania. It looks like it could stop, but it would convert that money into euros. Little.

In a billion. You are invisible in Europe, “said the technician, explaining that another goal had been born: one billion euros. Turnover in euros.

Still, things didn’t turn out so well, growth stopped. As stated, the company grew only between 10 and 15 percent. per year, which were not good numbers then.

“Our growth rate, which is still considered normal, is 25%. Per year or doubling the company every two years”, – revealed E. Liachovičius and said that he realized that the biggest limitation for that day was only them themselves, so all the managers went to improve their knowledge and learn.

“METRO. Raila went to study at Harvard, I received an executive MBA, followed by a study in Japan and later in the United States, a visit to the main American transportation companies. I also had to visit the largest in the world.

In America, 10,000. trucks are not a surprise, a big trucking company there, 5 and maybe 10 billion. dol. income per year.

We have realized that we have a lot of similarities with them, because there is similar economic potential and it is only a matter of time before, of course, if the European market is regulated as a single market, there will be reasons for large companies to be here too . It inspired us strongly.

Along with that, we realized that we can do much more than just grow a business. We can change the transport industry both in our country and in Europe, “he said.

Take on new challenges

One billion Girteka Logistics achieved a turnover of EUR in 2019, but this was no longer the most important thing for managers.

“It just came to our attention then. It will be about digital tracking. Digital tracking). To inspire our clients who add traditional businesses to digital businesses, we want to digitize traditional businesses.

We already have more technology in our truck than in many offices, ”he said.

Summing up, E. Liachovičius added that each of us probably has a story that takes people forward in life.

“Our motivation depends only on the size of our horizons and, most importantly, it is possible and necessary to create a large company in Lithuania that could change the entire industry,” said the head of the logistics company at the end of the report.