LEILANI LIM TAN
Vice-President
BJ MERCANTILE, INC. By Bernie Cahiles-Magkilat Rigid trucks, haulers and wing vans are indeed for the men’s, but its not exclusively theirs. Leilani Lim Tan, vice-president of BJ Mercantile Inc. (BJMI), the country’s fastest growing distributorship for heavy duty Scania vehicles, does not mince words as she charges the family business. It takes a woman to make this business environment more humane. It is also, perhaps, where men’s chivalry becomes real instead of being threatened when its world is conquered by a woman. This man’s business world has ceased to be one. BJMI Leilani’s family has been in the trucks business since 1974 with her parents started distributing used trucks and construction equipment. But since market preference has moved into brand new trucks, BJMI went with the flow to provide what the customers need. This paved the way for the distributorship agreement with Scania in September 2014 for BJMI to become the official sales and services dealer in the Philippines. Scania was officially launched in February 2015 with the opening of the showroom located in 1132 EDSA Balintawak, Quezon City Scania vehicles are imported from several countries in Europe and even outside but since they come in modular system it does not matter which country they come from. “It is of the same Scania quality,” says Leilani noting that sources of trucks will depend on which country has the available supply for their order. These are mostly tractor heads, rigid trucks like dump trucks, garbage compactors and wing vans. Whatever vehicles they provide, BJMI ensures they all get the same after sales and maintenance support. The trucks are of different applications and for different users. For instance, there have been some orders for garbage compactors for government projects, and some trucks like wing vans are needed for mining and others just for general cargo like cement mixers. It depends on the needs of customers. Economy Scania, a premium brand, has proven to be a good partner for companies, bringing good money instead of being seen as a burdensome capital investment. Scania offers several advantages. Fuel consumption alone is a big issue in terms of logistics cost of companies, but Scania offers the most efficient fuel when handled properly. “Fuel consumption is number one, it is very important to us because 50 to 60 percent of a hauler’s expense goes to fuel so if we can bring that down then it means more money in their pockets,” she adds. The habits – braking and idling – of drivers are big contributors to fuel consumption. “These little things contribute to fuel consumption and some haulers do not know about that so we have that change in mindset,” she adds. “So, what we do is train and coach the drivers so they drive the trucks properly to attain the best fuel consumption,” says Leilani. Another factor is maintenance. Once a vehicle goes into their workshop for maintenance, BJMI makes sure the unit gets proper maintenance so they have parts ready. A unit can be serviced immediately because they have a 24-hour operation, enabling maintenance to be completed the same day. “We also have 24-hour roadside assistance,” says Leilani. This policy has enabled immediate assistance to vehicles, especially for those under fleet management system contract with BJMI. All the Scania trucks have tracking, monitoring and GPS-equipped that owners can check on their unit’s real time. Since these are highly-automated machines, maintenance services are done remotely via computers. These remote diagnoses are made possible as every unit is equipped with sort of a “black box” of an airplane which records everything that transpired in the cockpit before an accident. Similarly, a Scania truck can be diagnosed via that tool. For now, this tool is unique only to Scania trucks. “We can do computer fix although there are still instances that our technicians have to go and see the trucks with the required parts. Our technicians make sure they do not leave a truck until it is repaired and on road-worthy condition again,” she adds. Already, big logistics companies including cement and oil firms are now big clients of BJMI for their Scania trucks. Among the European brands in the country, Leilani said they are the youngest in the market while some are ahead of them by as much as 10 years already. But BJMI is doing pretty well in the market. Aside from the trucks, BJMI is now starting to introduce the buses, which are also customized based on the needs of the client. These are mostly luxury coach buses. BJMI is also starting to introduce Scania power generator sets, which are ideal to power big buildings and industrial complex. For this year, BJMI is targeting truck sales of more or less 100 units. Tan said that 2018 is a slow year because companies have advanced their purchases in 2017 to avoid the higher excise taxes which was imposed starting Jan. 1, 2018. She said that 2016 and 2017 were good years. So far, they have sold more than 300 units of different kinds of trucks for long-haulage, distribution, construction and special purpose vehicles. Competition According to Leilani, competition in this vehicle sector has been “very cutthroat” and “very stiff” because there are also lots of Chinese, Japanese and European brands vying for a still relatively small market. In addition, she said, the market is very cost-conscious making competition even worse. So, there is a need for constant education and constant engagement with customers to let them realize the value of owning a Scania truck. “But once they experience with one unit, almost all of them return to get another one,” says Leilani citing repeat orders. It is just a matter of introducing the brand and once they know it is BJMI, clients feel confident they get all-out support. At the end of the day, it is survival of the fittest. Companies also compete for drivers. Unknown to many, one of the bigger costs of owning a truck is the cost of maintaining a driver. “Hiring good drivers is one of issues why a lot of truckers cannot expand,” says Leilani. Drivers are normally paid of a percentage of a gross income of a vehicle per trip per hour. It is very rare for truck drivers to get a daily wage rate. They are all incentivized. A hardworking driver can earn P6,000 to P7,000 a day or P70,000 a month. There is also a dearth of good truck drivers as there is high demand abroad of drivers for trailers, which require highly skilled drivers. “Government should encourage or set up a program to train drivers for this kind of trucks because one cannot drive these vehicles without the proper training and certification,” says Leilani. BJMI for its part shares in the training when they introduce the trucks to drivers during pick-up because they need to learn the built-in technology of a Scania vehicle, but it is the government that grants the certificates or the number 8 Drivers’ License. BJMI has roughly 25 technicians, who help introduce the new trucks to the drivers and explain the usage of the new gadgets. Some SME owners prefer Japanese brands because they trust in the availability of replacement parts. But Leilani emphasized that they have enough replacement parts and their trucks are highly automated that diagnostics and maintenance are easily done remotely via computers. Leilani also debunk claims that European parts are more expensive than other brands. According to Leilani, their parts come with one-year warranty with longer servicing period while other brands require frequent trips to the shops. “In the long run, we are cheaper,” she adds. No man’s world Leilani gets this question often about how it is working in a man’s world. “I am still alive,” says Leilani in jest. But being a woman is actually an advantage in this kind of business because since most of her sales counterparts and people she deals with are men, they treat her with reserved deference. In the first place, Leilani is not ignorant in the business having grown and raised in this environment for as long as she can remember. “I’ve been basically trained in the office since I was quite young,” says Leilani. She has familiarized with the terms and technical aspect of the business. This was further heightened when in 2003, she fully devoted her work with the family business. At first, it was difficult because it was a bit technical, but she got the hang of it as she learned from associates and clients. She was never shy to ask technical questions and take these lessons by heart. She learns costings, fuel consumption, and technical stuff. “The advantage of being a woman in this job is the men respect the women,” says Leilani. It is also faster to get things done because it is easier for women to persuade men. The disadvantage is that men also tend to underestimate the women until you prove your point. Leilani has experienced discrimination because she never introduced herself as the daughter of the owners of the company or her position in the company, but always as a sales person. By keeping her identity, a secret, clients also become more comfortable and more open to her. Even among the staff, Leilani never sees herself as the boss but just their equal. “I might be their boss but most of the time we are friends,” says Leilani. They do not even put their position on the business cards because all of them should be “Jack of all trades.” This works well because they are a very lean team so they tend to be generalists, making the organization more efficient. If there is a problem they discuss and find solutions which is different in big companies where there are layers of bureaucracies and there is no more direct line. Two of her siblings though are working outside of the company and two including Leilani are with the family business. Leilani’s parents are still active in the company with her mom still serving as the CFO and his dad as CEO. “I look up to my parents as still my bosses, and I am accountable and answerable to them for my decisions although they give me a freehand to made decisions as long as they are justifiable and for the benefit of the company,” she adds. When she has doubts or she happens to hit a wall, Leilani has no one to go to but her parents for advice and guidance. Leilani was trained by her dad in the sales division because she loves to talk to clients even for trivial things. And she feels good when clients warmed up to her and started confiding their business issues. “When I get to that Ievel, am happy already because I can feel they are comfortable with me and the relationship has kind of levelled up,” she adds. But Leilani cited that most of their current clients are still the old clients of her parents who stick it out with them for 20-30 years when they first purchased their first units. Lessons learned Leilani still sees more room for improvement in the next five years. “Obviously, there are things that need to improve and we will continue to grow at a pace that we are happy,” she adds. Their customer base is already nationwide although she sees the need to have local operations in three more strategic areas in the country. There are also opportunities in the future, like going into manufacturing either into assembly and in parts production. This, however, is in the long-term horizon yet. Long term planning is important for Leilani, who believes in the value of patience. “Be very patient, it takes a while to be patient and persistent because it takes a very long time to close a deal,” says Leilani, who works 24/7 and that even if she leaves the office, she is still on call 24/7. “Parents are the best teachers,” says Leilani, who looks up to her parents for being disciplinarians that they are. “We started with nothing so we built this business from ground-up. It was nothing but sweat, blood, hard work and persistence. When we started something, we have to persevere,” she adds. She learned that a family business is difficult because the first generation usually have higher expectations on the second. “I sure hope I have proven myself to my parents, but am never satisfied because no matter how hard you work they always want you to show more because that is the discipline – to make it better. And the end of the day, it is for our own benefit,” concludes Leilani.