Collicare has emerged as a leading logistics provider by focusing on sustainability, innovative solutions, and a strong corporate culture. In the interview, Allan discusses how the company has tackled challenges like high employee turnover and low margins, all while driving forward the green transition.
Here are his top insights for businesses looking to achieve profitable growth and establish long-term competitive advantages.
1. Challenge the Giants with Sustainable and Flexible Solutions
Collicare has grown by positioning itself as a challenger to larger players in the market. Allan Nielsen sees this as one of the key drivers of the company’s success. By focusing on sustainability and alternative solutions, Collicare offers customers greater flexibility and more options.
“We have positioned ourselves as a challenger to the larger players in the market. By focusing on sustainability and offering alternative solutions, we’ve given customers flexibility that attracts them,” says Allan.
He explains that larger companies often remain constrained by their systems, requiring customers to adapt to their ways of working. Collicare, on the other hand, prioritizes analyzing the root causes of customer challenges and providing meaningful solutions. This approach has allowed the company to not only challenge the market but also gain significant market share.
2. Balancing Growth and Profitability
Achieving both growth and profitability is particularly difficult in a low-margin industry. Allan highlights three critical success factors:
- The right organization: The team must be large enough to meet demand without incurring excessive costs.
- Targeted sales: Focus is placed on markets where additional volume is needed to minimize empty transportation and maximize profitability.
- Customer segmentation: By diversifying across seasons and segments, risks are minimized, and stability increases.
“We’ve been very intentional about identifying our pain points and finding solutions that strengthen the business without inflating costs,” Allan explains.
3. Investing in Sustainability to Gain a Competitive Edge
Sustainability has become a cornerstone of Collicare’s strategy. The company made early investments in green solutions and alternative transport methods despite higher upfront costs. Allan sees this as a long-term strategy driven by the inevitability of the green transition.
“We calculated the risks early and realized that the green transition must happen. By focusing on sustainable and innovative solutions, we saw it as an investment where time is on our side. We believe it will give us market share in the long run,” Allan says.
For some customers, green solutions are a decisive factor, even if prices are higher. For others, sustainability gives Collicare a competitive edge, enabling them to match competitors while promoting a greener image.
4. Factoring and Synced Credit Terms Keep Cash Flow Stable
Managing liquidity is one of the biggest challenges for rapidly growing companies. Allan describes three strategies that have proven effective for Collicare:
- Factoring when necessary: Temporary liquidity solutions are used during seasonal peaks to maintain a buffer.
- Matching credit terms: Aligning payment terms with customers and suppliers reduces cash flow risks.
- Organic growth: The company has avoided large loans or acquisitions that could burden cash flow.
“We’re still growing organically, which means we’ve avoided large loans or payment plans that could hinder growth. This allows us to balance growth with positive cash flow moving forward,” says Allan.
5. Building a Strong Culture Reduces Employee Turnover
High employee turnover was one of the challenges Collicare faced when Allan Nielsen took over as CEO. The solution lies in building a strong culture centered on creativity and inclusion. The goal was to create a work environment where employees feel involved in decision-making, are empowered to tackle challenges, and genuinely enjoy their jobs.
"It’s also about finding the right attitude in employees rather than solely focusing on experience," Allan explains. "We look for people who are solution-oriented, service-minded, and willing to go the extra mile."
6. Take Risks and Accelerate Through Challenges
Another key to success has been the ability to make clear decisions and take calculated risks. Allan explains that Collicare has sometimes needed to act quickly on investments, even amid internal debates about potential risks.
“We’ve learned not to brake our way out of an uphill climb. Instead, we accelerate through it by investing in innovation and new solutions,” Allan says.
This approach has enabled Collicare to develop unique products that competitors don’t yet offer. By acting boldly where others hesitate, the company has not only addressed changing customer needs but also unlocked new market opportunities and solidified its leadership position.
