CL Synergy (CLS) is a trailblazing logistics company that has been disrupting the industry’s norms for 19 years. Fondly calling themselves ‘The Cool Kids On The Block,’ they stay youthful and hungry, driven by their customer-centric approach and a motivated workforce that believes in working smarter and playing hard. They’ve carved a unique identity in the industry with strategic expansion plans for the future, in crucial overseas markets and a focus on sustainability. What makes them stand out? A proactive approach to embracing innovation. In this interview, Co-founder and Managing Director, Roshan Silva shares insights into their journey towards becoming a global logistics player and driving Sri Lanka’s emergence as a logistics hub.
On challenging the status quo within the logistics industry?
We commenced operations in 2004, a noteworthy 19 years ago, amidst an industry landscape comprising approximately 200 companies in Sri Lanka’s freight forwarding sector. Since inception, we embarked on a global vision for our logistics services, recognizing that the scope of freight forwarding extends beyond the confines of a specific country or region.
Central to our approach were two key focal points: staff and customers. Understanding the critical importance of these factors, the company sought to cultivate an environment that instilled inner motivation among its employees, right from the top management to every individual involved. This passion-driven approach was complemented by a commitment of adherence to fundamental principles.
When engaging with customers, we’ve always placed a significant priority on building trust by understanding their unique requirements. By meticulously executing logistics operations, the company established a reputation for professionalism and reliability. Sales people invested time and effort in researching various technical aspects, often surpassing the customer’s knowledge of their own products and the intricacies of international markets.
Such a proactive engagement proved transformative for several clients.
In essence, CLS’ ability to challenge the status quo has always been rooted in our dedication to both understanding and exceeding customer expectations. Consequently, we were able to carve out a unique identity in the logistics sector, distinguishing ourselves as a customer-centric and solution-oriented partner
How has the culture of family and work-life balance contributed to CLS’ resilience in the logistics industry for 19 years? Additionally, how does the company’s focus on team-building and encouraging smart work and play contribute to a motivated workforce?
Our staff and teams are pivotal to our success as we operate in the service industry. Recognizing the significance of our employees, we have cultivated a unique and genuine family culture within the company. This family-like atmosphere serves as a strong foundation for our organization.
At CLS, we prioritize creating a workplace where individuals are enthusiastic about coming to the office each morning. We believe in providing an environment where employees find peace of mind and a true sense of belonging. To achieve this, we have implemented flexible working hours and seating arrangements, including hot seats, to encourage employees to feel comfortable and at ease while working. By adopting this approach, we have successfully transformed the office into a space that people genuinely want to be in. As a result, we have witnessed a notable increase in staff motivation and a fostering of free-thinking, which have been instrumental in driving innovation within our company
Regardless of their level within the organization, from junior to middle-level staff and seniors, we encourage everyone to think beyond their regular tasks and to implement innovative solutions. Our philosophy is built on delegating authority and empowering our employees. By doing so, we have nurtured a culture of support and trust, allowing our team members to explore new ideas without fear of making mistakes. This open and empowering environment has led to extended hours spent at the office, with employees engaging in discussions and casual corridor talks that often spark creative concepts. These discussions have resulted in a wide range of innovative ideas, including new product introductions, improvements in training methods, and cost-control strategies.
In the competitive forwarding industry with around 400 players, we uniquely maintain harmonious relationships with competitors. Over 19 years, despite a high turnover of over 400 employees, we’ve kept strong ties with past staff. Our team now consists of 129 employees, with a larger network of 350 across group companies, forming a robust, connected family.
This sense of camaraderie extends beyond our company walls to industry events and gatherings, where we continue to meet and share knowledge with former colleagues and peers. The support we receive from these relationships, especially when our staff members are involved in various trade-related institutes, proves to be invaluable.
Our people are undeniably the cornerstone of our organization’s strength and success. The culture of unity, trust, and innovation we have nurtured not only motivates our staff but also allows us to maintain meaningful connections within the industry and beyond.
To foster an office environment that encourages free thinkers and promotes innovation, CLS emphasizes a work-life balance and team-building activities. The company aims to create a workplace that is not overly rigid, allowing employees to feel supported and empowered to come up with creative solutions. This approach includes breaking away from the traditional concept of strict office hours, and the company organizes various activities and events to promote camaraderie and engagement among employees.
How has CLS’ proactive approach to embracing digitalization and developing innovative platforms contributed to a leadership position in the industry?
In navigating the risks associated with innovation, we embrace the notion that higher risks often lead to greater rewards. Taking calculated risks keeps us dynamic and prevents monotony. We understand the need to venture into uncharted territory to stay relevant in the industry.
As the logistics sector evolves towards digitalization, we recognize the importance of staying ahead of the curve. The industry involves both physical and information flow of cargo, necessitating enhanced visibility and transparency for customers. To address this, we invest in IT developments, tracking systems, and real-time accessibility tools. We envision customer needs four to five years ahead to implement cutting-edge solutions, creating visibility and transparency as key aspects of information flow.
Unlike traditional A to B transportation, we now handle the entire supply chain as logistics providers. In response to changing trends, ocean carriers have embraced online booking platforms. As forwarders, we seized this opportunity to develop a one-stop shop platform that connects backend liner systems, offering customers enhanced visibility on rates, services, and vessel schedules.
New product development not only pertains to logistics solutions but also includes research and information about the products themselves. Leveraging our global connections and extensive exposure as logisticians, we are in the process of creating a platform to provide exporters with valuable information, such as duty rates and regulations in different countries, facilitating cost analysis and market exploration.
Overall, our willingness to take calculated risks and adapt to emerging trends in the logistics industry has positioned us as leaders of a new generation. Our dedication to innovation and commitment to providing comprehensive solutions have set us apart in this competitive market.
Can you provide more insights into CLS’ expansion strategy and how the company plans to leverage its international presence to offer innovative services beyond borders?
Currently, our focus lies on the subcontinent, which includes India, Bangladesh, and Pakistan, as well as the Far East, which serve as sourcing and origin markets connecting to the buyer-markets, such as the US, Europe, and the UK. To establish a strong presence in these regions, we have taken a multi-faceted approach. We have set up sales offices in the buyer-markets and operational offices in the sourcing markets. Additionally, we have forged strategic partnerships with various network partners at different locations. For instance, in a country like India, we collaborate with five or six key partners in different states, amounting to a network of over 20 partners.
Our expansion efforts have been prudent, requiring a minimal capital infusion while leveraging the infrastructure and capabilities of our network partners. This model allows us to work effectively and promote our brand and services with the support of our partners and representatives stationed at these locations.
We have successfully launched operations in India and Bangladesh. In addition, our services have expanded to Bangladesh, Australia, Dubai, the UK and the US, where we have established a sales office covering Europe as well. Furthermore, we have imminent plans to launch operations in the US in September, encompassing both operational and sales development activities.
The post-COVID world has opened new avenues for remote work, allowing for seamless communication and conducting meetings virtually. This shift has enabled us to recruit talented staff at these international locations, operating under retainer and profit-sharing models. The progress we have witnessed is encouraging, and we are optimistic about the significant opportunities that lie ahead.
What do you envision for CLS in the long term?
Our primary objective is to position ourselves as a regional and global player in the logistics industry. To achieve this, we are focusing on several key areas. Firstly, we are in the process of migrating our ERP system to a globally-used platform, which will enhance our operational efficiency and enable us to provide white-labeled products and customized solutions to our customers. This technology-driven approach will enable us to remain at the forefront of the industry.
Our goal is to establish the CLS brand in the Far East sector through strategic partnerships with selected agents and implementing a push and pull strategy. This involves building a strong sales force in key markets like the UK, US, and Europe to promote not just Sri Lanka or the subcontinent, but the entire region.
Our sales and customer service team, comprising over 50 dedicated members, is a driving force behind our expansion plans. We intend to expand this team further to support our overseas office expansions. Our existing staff members have been given opportunities to manage new stations, and their passion and dedication are vital assets as we venture into new territories.
In pursuit of our ambitious plans, we recognize the importance of continuous training and recruitment to strengthen our workforce. Our experienced and passionate staff, coupled with our market research and feasibility studies in different regions, will guide us in making informed decisions during our global expansion.
As we look to the future, we are keenly aware of the vast opportunities that lie ahead in the African continent. Countries like Kenya offer numerous business prospects, and we aim to explore and capitalize on these opportunities.
Beyond technology and market expansion, we are committed to sustainability initiatives. Our marketing team is actively involved in driving sustainability programs, which are increasingly valued by customers when selecting a logistics provider. CSR projects, staff development initiatives, and industrial development projects are some of the areas we are focusing on to make a positive impact.
CLS’ future vision involves becoming a prominent regional and global player in the logistics industry, underpinned by technology advancements, international expansion, and a focus on sustainability. Our passionate and dedicated staff, coupled with our strategic plans, are paving the way for a very promising future.
How do you see CLS’ ongoing contribution to Sri Lanka’s development as a global logistics hub evolving in the future?
Over the past few years, Sri Lanka has seen significant developments as a global logistics hub, capitalizing on its natural strategic advantages. Key areas of focus have been container terminals, port infrastructure, airport facilities, road networks, and overall physical infrastructure enhancements. These developments, including capacity expansions at various container terminals such as JCT, SAGT, and CICT, have positioned Sri Lanka to attract larger vessels and increase its capacity as a vital transit point.
In this context, companies like CLS have played a crucial role in contributing to Sri Lanka’s emergence as a global logistics hub. As an active member of the industry apex body, Sri Lanka Logistics and Freight Forwarders Association (SLAFA), CLS has collaborated with other industry players to lobby for necessary developments with government authorities and institutions. By participating in these efforts, the company has advocated for the enhancement of logistics-related systems, automations, and e-documentation processes to improve overall efficiency and attract more business.
Additionally, CLS, as an individual entity, has established itself as a reliable and high-quality service provider to a diverse clientele. The company serves a wide range of industries, including high-value apparel, large retailers, pharmaceuticals, food products, aviation equipment, and mineral products, among others. By delivering exceptional service excellence to its clients, CLS has contributed to retaining and increasing orders for Sri Lankan exporters.
Through its active involvement in industry associations and its commitment to delivering top-notch service, CLS has played a significant role in advancing Sri Lanka’s position as a global logistics hub. The company’s efforts align with the overall industry objectives to enhance Sri Lanka’s logistics performance index, improve connectivity, and promote the country’s attractiveness as a preferred destination for international trade and logistics operations.