Sharp ■ Informed ■ Challenging
4.6.18
BOOK N OW
MOTOR TRANSPORT AWARDS 2018
MTAWARDS.CO.UK
NEWS INSIDE
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01/02/2018 12:03
Losing its polish
Canute surrenders Tetrosyl to Bibby Distribution p3
Consolidation
Pallet networks need to take the next step
p6
Shocking behaviour
Mick George fined £565,000 for regulation breaches p10
OPERATORS IN THIS ISSUE Bibby Distribution..................................p3 CML F&L (Telford) .................................p7 Canute Haulage Group ...........................p3 Culina Group .........................................p7 DHL ......................................................p7 DPD .....................................................p7 Great Bear Distribution .........................p7 Integrated Packaging Services ..............p7 M and J Haulage ...................................p6 Massey Wilcox .....................................p6 Mick George .......................................p10 Milk & More ........................................p15 Morgan McLernon .................................p7 Royal Mail ...................................... p7, 32 W Gibson (Haulage) ............................p22 Walkers Transport.................................p3 Warrens Group .....................................p7 Whistl ..................................................p4 Wincanton ..................................... p7, 15
FLYING THE FLAG: Montgomery Transport is the first Northern Ireland haulier to be accredited in the DVSA’s earned recognition scheme. Operators in the scheme share performance and compliance information with the DVSA, and in return their vehicles are less likely to be stopped for roadside inspections. Steven McBride, general manager of group company Montgomery Distribution (pictured), said: “This status is difficult to achieve but it sends out a signal to our customers and competitors that we are committed to delivering high standards across the business and leading the way in road safety for everyone.” Montgomery Distribution, Montgomery Tank Services and Montgomery Transport are among more than 40 haulage, coach and bus firms that are part of the scheme.
But Asda and Sainsbury’s suppliers might be affected if merger gets the go-ahead
Transport won’t be cut if supermarkets merge By Carol Millett
No DCs will be closed if the proposed merger between Sainsbury’s and Asda gets the green light, Sainsbury’s group chief executive Mike Coupe has pledged. There could, however, be cuts to suppliers working with both supermarkets, and a reduction in supplier deliveries, according to information supplied by both supermarket chains to the House of Commons Business, Energy and Industrial Strategy Committee. Writing in response to the committee’s request for information on the planned merger’s effect on jobs and suppliers, Coupe said: “I can confirm that none of the synergies in our plan are based on us closing stores or DCs,” adding that the growth of online shopping would result in employing more drivers and in-store pickers.
Coupe said the merger could result in fewer deliveries for some suppliers, as suppliers to the separate businesses streamline deliveries. “Examples of where we have done this previously include working in partnership with suppliers to reduce the number of deliveries to depots. “This means their lorries are fuller and they can reduce costs as well as their environmental impact.” Asda Stores chief executive Roger Burnley echoed this view in his written response to the committee’s request for information on the merger. He said: “As volumes increase, there will inevitably be economies of scale, especially for suppliers that supply Asda and Sainsbury’s with the same goods.” Both letters were published on the committee’s website this week.
The proposed merger of the two supermarket groups, announced in April, is being i nv e s t i g a t e d b y t h e Competition and Markets Authority (CMA). If the CMA gives the supermarkets the go-ahead it will create the UK’s largest supermarket business, with a 60% share of the market. The committee has called on the CMA to “look closely at the effect of this merger on the supply chain as well as the effect on competition in the supermarket sector”, warning that any cost savings “must not come through squeezing those further down the supply chain”. The CMA has published a preliminary invitation to comment on its website and is planning to contact interested parties as part of its investigation. The investigation is expected
to be completed early next year. David Madden, market analyst at CMC Markets, warned that duplication was inevitable if the deal went ahead, adding that the combined group’s distribution network including depots was likely to see cuts (MT 6 May).
Tip-ex review p14 Focus: urban p15 Interview: Joachim Drees p18 Marketplace p20-28 Parcels p32 MT Awards shortlists p34-38
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