Sharp ■ Informed ■ Challenging
NEWS INSIDE Ups and downs
Turnover and earnings up but pre-tax loss at Stobart p3
4.9.17
the NEXT GENERATION SCANIA
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Challenging times
Double-edged sword for Gregory Distribution p4
Border control
Northern Ireland/Ireland hauliers fear hard border p6
OPERATORS IN THIS ISSUE Allen Logistics ......................................p6 Derry Refrigerated Transport..................p6 DHL Supply Chain ..................................p3 DPD ....................................................p22 Eddie Stobart ........................................p3 EM Rogers.............................................p4 ETS Distribution ..................................p18 Farmdrop ...........................................p11 Gnewt Cargo .........................................p3 Gregory Distribution ..............................p4 John Raymond Transport .......................p4 Menzies Distribution..............................p3 Nolan Transport.....................................p4 Ocado .................................................p11 Samworth Brothers Supply Chain ........p20 Surefreight ...........................................p6
A supplier of the in-cab device said it had seen a recent surge in hauliers’ enquiries
M1 crash spikes interest in breathalysers for cabs
By Carol Millett
Enquiries about in-cab breathalysers have risen sharply since the crash on the M1 involved an HGV driver found to be over the drink-drive limit. The crash, near Newport Pagnell, resulted in the death of eight out of the 12 minibus passengers after the vehicle collided with two HGVs. AIM Logistics driver Ryszard Masierak was accused of having 55 micrograms of alcohol per 100ml of breath after the crash (the legal limit is 35 micrograms). He has been charged with causing death by dangerous driving and death by careless driving. FedEx driver David Wagstaff, from Stoke-on-Trent, was charged with causing death by dangerous driving and causing serious injury by dangerous driving.
Following the crash, Alcolock GB, a supplier of in-cab breathalysers, said enquiries from hauliers for its Alcolock DS10 breathalyser, pictured, have surged. The device, which retails at £1,000, connects to the vehicle immobiliser and disables the vehicle if the driver is over the limit. Alcolock GB operational director Diane Whittock told MT: “We had a spike in enquiries from hauliers following the crash – mainly from firms that have shown an interest and are now going to order it. We find that happens a lot – people tend to bury their heads in the sand and when something like this happens they decide it is money well spent.” Whittock said sales to hauliers have increased by 25% over the past 12 months, but added: “That’s not enough.
Only 10% of our customers are from the haulage sector, and those that do fit our device tend to be the larger hauliers. But you can’t put a price on reputation.” Road transport solicitor Tim Norris at Ashtons Legal said using breathalysers could help
FRESH FACE: DAF has refreshed its LF range with a new cityfriendly engine, exterior design and optional lowered passenger window to enhance safety. The DAF LF, market leader in the 7.5-tonne to 18-tonne range, can be specified with a 3.8-litre Paccar engine – the PX-4. This has two power ratings: 156hp and 172hp, with maximum torque of 500Nm and 600Nm respectively between 1,200rpm and 2,000rpm. DAF is marketing this option specifically for its LF City range for light, urban distribution. Both 4.5-litre and 6.7-litre engines from 184hp up to 325hp are available. Another addition is an optional lower window in the passenger door to improve passenger side visibility. The new LF (from 8-tonne GVW and with rear air suspension) comes with an advanced emergency braking system, forward collision warning, adaptive cruise control and lane departure warning system as standard. DAF is also offering DAF Connect, its fleet management system, on the new LF.
firms in the event of an accident. “Although there is no duty of care on operators to install devices, they could lessen the likelihood of prosecution by the Health and Safety Executive and they show the operator takes the issue seriously,” he said. However, RHA policy director Duncan Buchanan questioned the effectiveness of in-cab breathalysers. “What if a driver over the limit got someone else to blow into the device? The best approach is zero tolerance.” The UK’s two largest road transport operators, Royal Mail and DHL Supply Chain, told MT they had no plans to install devices. DHL said it preferred to use “a comprehensive programme of drug and alcohol testing”.
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News Extra p8 Highwayman p10 Focus: Urban logistics p11 Pallets p14 Succession planning p18 MT Awards winner profiles p20 Careers p25
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31/08/2017 15:19:09
Innovation and Safety in Road Transport Engineering the 2017 irtec Scottish Convention 5
5 HOURS
RS CP D OU H
Wednesday 18 October, Murrayfield, Edinburgh
Join us for the haulage operations and maintenance conference of the year, of benefit to all interested in technology, safety and policy developments. On top of presentations and lively debate, there will be vehicle displays, networking opportunities and a chance to visit the turf. Highlights include: • Mock Public Inquiry hosted by Joan Aitken • Presentations from BPW, DAF, TEXA and more
Find out more and book: w: irtecscottishconvention.eventbrite.co.uk t: 020 7630 2150 e: events@soe.org.uk
The irtec Scottish Convention is an initiative from the Scottish Development Committee of IRTE, a professional sector of the Society of Operations Engineers.
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30/08/2017 16:05:35
News
motortransport.co.uk
DHL to self-insure autonomous trials DHL Supply Chain will insure itself while running autonomous trucks in the Transport Research Laboratory’s (TRL) £8.1m trial of platooning trucks in the UK. TRL will run the trial, which could see platooning HGVs on major UK roads by the end of next year, in conjunction with DHL and DAF Trucks. DHL Supply Chain MD of transport Phil Roe said running the technology previously unseen on UK roads will not affect its insurance premiums because the operator is self-insured. Roe said the trucks taking part in the trial will be a mix of plain and DHL-branded vehicles, and it will choose volunteer drivers from its trained pool. He said what freight and whose freight the platoon would be carrying in the trials is yet to be confirmed. Roe told MT: “We are delighted to be part of this ground-breaking trial. As the global logistics leader, we recently committed to reduce all logistics-related emissions to net zero by the year 2050.” DAF Trucks will also participate in the trial. Management board member Ron Borsboom said the manufacturer was “honoured” to be involved, and described the trials as “an important and necessary step”.
ELECTRIC DEAL: Menzies Distribution has bought fully electric final-mile delivery firm Gnewt Cargo. London-based Gnewt Cargo runs 100 electric vehicles in the city, and Menzies said the acquisition will support its drive to build a carbon neutral, UK-wide parcel consolidation service while boosting its green portfolio. Menzies MD Greg Michael said it would also give the operator a “stronger, cleaner presence in the London market”. A spokesman for Menzies told MT the Gnewt Cargo name would remain in place, as would its founders and directors Sam Clarke and Matthew Linnecar. Menzies said it was examining opportunities to use Gnewt’s fleet for its own operation, but Gnewt Cargo will continue servicing its own contracts. In its most recently published results for the year to 31 January 2015, Gnewt Cargo recorded a turnover of £2.5m and a pre-tax profit of £100,368.
In the first six months of the year, group earnings rise but pre-tax profit drops
Eddie Stobart results a game of two halves By Chris Druce
Eddie Stobart reported turnover and earnings up in the first six months of its financial year, but the cost of refinancing, its stock market listing and the end of an Irish retail contract resulted in a pre-tax loss. Having completed an initial public offering (IPO) on the Alternative Investment Market in April, the haulier saw revenue climb 7.7% to £287m (2016
£266m) in the six months to 31 May 2017. Stobart said it had achieved £25m of new annualised contract wins during the period, with the majority of the benefit due in the second half of its trading year. It is making a play for business in the e-commerce space, having purchased iForce for £44.9m earlier this year, and the manufacturing, industrial
and bulk sectors. As a result, the company said in its results statement, it had seen a slight decline in turnover at its retail division. Eddie Stobart recorded exceptional items of £6.6m in the period, £3.7m of which was associated with the IPO, approaching £500,000 relating to the purchase of iForce. The remainder were legal and restructuring costs relating to
the discontinuation of its retail contract in Ireland. The haulier made a pre-tax loss of £6.3m in the period compared with a £1.7m profit a year earlier. It has also announced a maiden dividend of 1.4p per share. It acquired the remaining 50% stake in recruitment company The Logistics People for £5m (climbing to £6m based on agreed profit targets).
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www.tigertrailers.co.uk MotorTransport 3 31/08/2017 14:55:11
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More frequent tenders and the loss of a large customer present group with both difficulties and opportunities
Gregory: it’s been a challenging year
By Carol Millett
venture saw turnover rise to a sector with many upward Clients tendering contracts £10.7m from £9m in the previ- aspects. It’s a tough battle and more frequently and the loss ous year, pre-tax profit fell for the sector is extremely competof a large and “challenging” the second year to £237,000 itive, reflecting the UK econcustomer is presenting (2015 £327,000). omy as a whole.” Speaking to MT, chief execGregory said the firm was Gregory Distribution (Holdings) with both utive John Gregory confirmed experiencing an increasing difficulties and opportunities. Gregory Distribution had lost trend for companies to tender Reporting its results to “a very big customer”, adding: more frequently. 1 October 2016, the company, “It was a challenging customer “Businesses are introducing which has 32 depots across and through the tender procurement departments that the UK, said the trend was process we parted company. 10 years ago did not exist in presenting the firm with addi- However this is the nature of this sector. In justifying their tional risk but also creating the transport sector. All existence, these departments opportunities. companies win and lose look to tender work and that The directors’ report contracts, but we are generally process is affecting the dynamrevealed Gregory Distribution winning more than losing.” ics between customer and had lost a large customer Asked how the company is supplier.” towards the end of the finan- progressing in the current Gregory added: “We anticicial year. While the loss would financial year, Gregory said: pate a fall in profit and turnresult in “slightly lower” reve- “It is hellishly challenging. over this year. However we are nue in 2017, the company said This year remains as challeng- a 98-year-old company. We will it expected to maintain profit ing as every year and in some ride this wave, as we have and improve margins since “a ways more so. This is hardly ridden others.” large proportion of this business has been replaced by additional volume from existKAY TRANSPORT FADING AWAY ing customers and new busiKay Transport’s brand and livery is set to be phased out, ness wins”. Gregory confirmed. The group’s structure will be The results show a 6.8% simplified by integrating Kay Transport, which was bought increase in the group’s pre-tax in 2009, into Gregory Distribution. profit to £6.6m (2015 £6.1m), Chief executive John Gregory said: “We were running with group turnover increasKay as a separate business and now we are running it as ing by 5.7% to £176m (2015 one with Gregory Distribution because we generally £165m) in the same period. consolidate the companies we acquire, as we did with These figures include the Framptons.” turnover and pre-tax profit He added: “The livery and the brand will change over from the firm’s joint venture time and will gradually adopt the Gregory brand and our with Scottish haulier Hayton brown livery.” Coulthard Transport. Kalmar Ad Display 67 x joint 206mm T2 Stock AW.qxp_Layout 1 22/08/2017 17:26 Page 1 However, while the
EM Rogers hit by weak pound and cheap Chinese trucks A weak pound and rising demand for cheap Chinese trucks in Commonwealth markets has hit profit at international haulier and truck sales firm EM Rogers. Reporting its results for the year to 31 January 2017, the Northampton firm revealed that while turnover increased from £18.5m to £18.8m, pretax profit fell from £2m to £1.7m. MD David Rogers told MT the family firm, which he runs with his brother John, had suffered from the devaluation of sterling following the EU referendum. “We buy fuel in Europe, and with the pound dwindling since the Brexit vote, on current exchange rates it is costing us approximately £40,000 a month more – that’s more than £500,000 a year we are losing just on the exchange rate,” he said. Rogers said the trend in Commonwealth markets to buy Chinese trucks had also hit the company’s truck sales division. “China is producing
copy trucks at a third of the price of the genuine product, and these have become popular in Commonwealth countries, which is knocking the second-hand truck market. “We would sell 700 to 800 trucks a year in these markets, but that has halved over the past four years.” Rogers also raised concern at the prospect of customs controls post-Brexit, and questioned whether international hauliers would be able to claim back VAT from the EU once Britain leaves. However, he remained upbeat about the company’s future. “The business is going well. We are busy and our margins are OK, so I am as confident as I can be, considering Brexit.” Rogers added that the firm’s Dutch subsidiary may play a more significant role postBrexit. “We have an office in Holland, a hub in Europe and 20 trucks registered in Holland. Depending on which form Brexit takes, that might become a valuable asset to us,” he said.
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4.9.17 31/08/2017 14:54:44
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30/08/2017 16:00:13
News extra
motortransport.co.uk
Anxious hauliers on both sides of the divide insist there should be no return to a ‘hard border’ post-Brexit
Irish border needs direction
By Laura Reeve
There is widespread agreement among UK and Irish parties that there should be no return to what has been labelled a hard border separating Northern Ireland and Ireland after Brexit. Trade on the island thrives on a seamless cross-border arrangement, but with the UK’s intention to exit not only the EU, but also membership of the single market and the customs union, the Irish border is recognised as an issue of special significance in wider Brexit negotiations.
Historic
Part of the Good Friday Agreement included the removal of security installations at border crossings, and today the border is invisible and seamless across its 500km length. There is also free movement on more than 250 roads crossing Northern Ireland and Ireland. Although it is recognised that Ireland is a special case, if the Irish border were to be treated consistently with other third-country land frontiers, management of key road crossings would have to be established, typically including toll gantry-style monitoring. The government’s paper on the subject published last month outlines the UK’s position on four key areas, including the avoidance of a hard border for the movement of goods. 6 MotorTransport MTR_040917_006.indd 6
However, Manufacturing Northern Ireland chief executive Stephen Kelly said: “Terms such as ‘frictionless’ and ‘seamless’ and a ‘soft border’ can be misleading. It is important to recognise that in leaving the customs union it would be inevitable there would be a move away from free movement of goods across the border.”
Unworkable
Surefreight MD Vincent Waddell is also sceptical about the UK’s ability to avoid a hard border. “A hard Brexit equals a hard border with the customs checks to go with it,” he said. He believes that, ultimately, the EU will be making the decisions, and won’t be dictated to by the UK. Nevertheless, his stance is strong: “Anything short of a clear, no-stopping, seamless border would be unworkable.” According to Irish revenue commissioner Liam Irwin, EU law dictates some inspections would be required after the UK leaves the EU, and this could mean between 6% and 8% of freight being checked. The hauliers that would feel the effects of delays more than most are those operating justin-time or next-day services. Allen Logistics (NI) MD James Allen also has concerns. The haulier collects from production lines in Northern Ireland and transports the goods overnight for next-day delivery across Ireland.
He said: “In the old days of a hard border, there was only free travel between 9am and 5pm. There needs to be unrestricted travel 24/7 to make our business model viable.” Regardless of the border solution implemented, there will undoubtedly be additional costs for hauliers. FTA policy and membership manager in Northern Ireland Seamus Leheny said: “If risk profiling needs to be done on goods moving from Northern Ireland to Ireland when the UK is outside of the customs union we could potentially have 500 to 600 lorries being stopped every day. “Those stops could amount to anything from five minutes to half an hour, depending on whether it is a paperwork check or a physical inspection. He added: “The running costs for a 44-tonne lorry, which typically travels crossborder, is £1 a minute and those costs have to be covered by someone.” “With hauliers working to such tight margins, they could not possibly absorb the additional costs. The costs would have to transfer to those
exporters, retailers and manufacturers that want to move goods outside of the UK.” Allen Logistics operates a groupage service as part of the Irish TPN pallet network and frequently runs trailers containing between 40 and 60 consignments. No paperwork is needed, but MD Allen worries each consignment might require its own paperwork for customs after Brexit. Waddell added: “There is likely to be investment in IT systems required, as well as additional administration staff to load the data.” Surefreight’s Waddell fears delays due to customs checks could result in more vehicles and drivers being required to do the same amount of work because drivers’ hours would be wasted waiting at checkpoints. Manufacturing Northern Ireland’s Kelly said any proposed soft border approach “threatens to damage the competitiveness of Northern Irish businesses by adding complexity to already complex supply chains”. Derry Refrigerated Transport MD Patrick Derry said: “Factories we collect from don’t always run on time, and at the moment we can work with this, but if there are checks to contend with everything will have to run like clockwork to ensure timetables are met. When consolidating loads, it only takes one customer to be late to have a
knock-on effect on the entire operation.”
Relocation
Northern Irish operators are not ruling out the possibility of moving their operations across the border. Derry Refrigerated Transport is seeking to open a branch in Ireland as a response to Brexit. Derry said: “We have to make sure our business is safe and our customers are safe so we don’t feel we have any other choice.” One of the solutions to the customs issue being proposed is to have a special status for Northern Ireland, whereby there would be a certificate of origin only valid for goods produced in Northern Ireland. While the FTA is in favour of this concept, Leheny said: “A hard border would increase smuggling. Goods could be repackaged and classed as Northern Irish produce, which would undermine the credibility of local producers.” There are similar concerns over a potential digital solution, whereby pre-registrations and surveillance cameras would be used to allow free trade and movement with the majority opinion being that it wouldn’t work. Waddell said: “I can’t grasp that anything short of stopping at a border is going to be acceptable to the EU. What could cameras achieve? How would anyone know what was on the trailer?” 4.9.17 30/08/2017 12:22:13
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30/08/2017 16:07:59
News extra
motortransport.co.uk
Transaid raised £14,250 at the Motor Transport Awards by auctioning off 24-hour superstar internships
Definitely money well spent By Kevin Swallow
During the Motor Transport Awards international development organisation Transaid conducted an auction to raise money. Gary Forster, Transaid’s former chief executive, was snapped up at the charity auction for £2,250 by Ian Jones, director and solicitor at Backhouse Jones. In total £14,250 was raised. After joining Transaid 11 years ago as a volunteer from Procter & Gamble, Forster spent his first two years in Zambia, followed by two years in Nigeria. He took over as chief executive in April 2011 and stood down this year to travel with his wife Jamie and to take a break from running a major charity with responsibility for a 14-strong team. “My time with Transaid was amazing and we have done many important projects that have made a real difference. We raised more than £600,000 a year from the transport industry, and the last cycling event in South Africa raised £220,000,” he said. “We invest in issues, such as road safety in sub-Saharan Africa. Africa has the fewest vehicles yet a disproportionately high road death rate.” Transaid is running driver training road safety campaigns in Tanzania, Uganda and Zambia. According to the World Health Organisation, in 2013 African countries made up 17 of the top 20 countries for the number of road fatalities per 100,000 people.
Life-changing donations
Forster said: “I would like to express my gratitude to the UK transport and logistics industry which, through their cycling, fundraising and corporate donations, have changed the lives of thousands of people whom they will almost certainly never meet. “Our success has been a team effort, for which I would like to thank my colleagues for their dedication, long hours and energy – together with the amazing support from our partners across Africa.” After a break he and his wife 8 MotorTransport MTR_040917_008.indd 8
plan to walk El Camino de Santiago (known as the Way of St James) across northern Spain. When they have completed this 500 mile-plus walk through 15 Spanish regions to the Cathedral of Santiago de Compostela in Galicia, they will trek across Nepal. On his return Forster is keen to do more hands-on work at the front line with people and organisations. Backhouse Jones is a huge supporter of the charity, said Ian Jones. As a 198-year-old practice that has its origins in transport, the team pulls in the same direction rather than being involved in separate areas such as probate, corporate or libel law, where transport is tacked on the side. Concentrating on transport has seen Backhouse Jones forge close links with the RHA. This led to a non-insurancebacked legal package where operators can get legal advice, assistance and representation
for £56.20 per vehicle per year and £50,000 for any case that goes to a tribunal. “Last year we took more than 4,500 calls from RHA members,” Jones said, “with 95% of issues solved over the phone.” As far as the bid for Forster’s services goes, Jones explained: “We do not take interns, Gary is our first. When taking on somebody usually a law firm would go through a recruitment agency. Recruitment into transport is not straightforward, so we take people on through work experience, or they might be brought in as a para-legal.
Training contract
“If we like the look of them, and they are willing to get up at 5am to go to a tribunal in the back of beyond then we will look to take them on a twoyear training contract. We employ most people that complete the training contract,” Jones added.
DIRTY WORK: former Transaid chief executive Gary Forster (left and above) sets about Backhouse Jones with a duster. And Backhouse Jones’ Ian Jones (above top) and Forster shake hands at the end of the internship; unfortunately Forster will not be kept on
There are 25 qualified solicitors and 25 administrative staff at Backhouse Jones. Newcomers include Charlotte Jackson and Stef Walkerdene. Jackson is a trainee solicitor in the second year of training. She studied law at the University of York and has worked in the regulatory, insurance/litigation and employment departments, with a preference for corporate as a future career. Walkerdene worked as a para-legal before starting her training contract last month. She obtained a law degree at the University of Lancashire.
Forster travelled from south London to Clitheroe in Lancashire mildly apprehensive of what his temporary bosses had in store for him, but he had little to fear. Apart from tasking him with a bit of gentle polishing and getting the duster out, the team of solicitors and administrative staff at Backhouse Jones went easy on their 24-hour intern. As Forster said his farewells, he acknowledged just how hard the team at Backhouse Jones works to support its clients, the transport industry and contribute to help Transaid make a difference. 4.9.17 31/08/2017 10:59:54
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30/08/2017 16:09:53
Highwayman
If you have a story for Highwayman, send it to highwaymanMT@ gmail.com
motortransport.co.uk
GLOBAL AMBITIONS: You can hardly call Europa Worldwide shy and retiring. They’re not backward in coming forward, particularly when outspoken Leave campaigner and Europa MD Andrew Baxter slaps ‘Love Europe, not the EU’ on one of his trailers conducting international groupage. So imagine our surprise when Europa told us about a team-building weekend with its Italian partner (no, not that kind of Italian partner) Bianchi Como, which is based on both sides of the Italian/ Swiss border near Lake Como. It must have been quite the culture shock when they stayed in Dartford. At least they got the chance to have a cruise down the Thames, a VIP trip on the London Eye (pictured) and an apparently lovely dinner in Covent Garden. Nice to see British business building up its international trade partnerships!
Trump scraps OSA screening Code XL
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MT doesn’t often report on events in road transport-based logistics on the other side of the Atlantic. With all the farce surrounding Brexit, there’s enough to plunder throughout the UK and Europe without Highwayman sinking his teeth into Trump… …until now! It’s fair to say that Trump is a polarising character, and the 45th president of the USA has put forward some controversial policies. One of these caught Highwayman’s eye – namely Trump’s culling of mandatory screening of truck drivers for obstructive sleep apnoea (OSA). The Obama administration had proposed screening train and truck drivers for undiagnosed OSA – before an incident in September 2016 when a commuter train crashed into a platform in Hoboken, New Jersey, injuring more than 100 people. The driver was found to be suffering from undiagnosed OSA. In August, the Trump
administration decided it would withdraw the proposal for screening “individuals occupying safety sensitive positions in highway and rail transportation”. Trump’s reasoning for not wanting checks to prevent someone falling asleep behind the wheel of a truck? Because the Department of Transportation could not “quantify the potential economic benefits” of screening. Which is just like asking a contestant on Great British Bake Off to quantify the economic benefits of making a rather tasty cake. It’s not the only legislation the Trump administration has “not continued to pursue”. Long-term plans to mandate the use of speed limiters in trucks have been kicked off the Trump train too. Presumably there are “many sides” (to paraphrase another Trumpian policy argument) to drivers of really fast trucks falling asleep behind the wheel.
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10 MotorTransport MTR_040917_010.indd 10
Image: Rex
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4.9.17 30/08/2017 16:54:53
Focus: Urban logistics
motortransport.co.uk
DfT’s level playing field for alternative-fuel vans MT sister title Freight in the City looks at the latest news from the world of sustainable urban deliveries The DfT launched a consultation last month into whether or not to permit category B (car) licence holders to operate heavier, alternatively fuelled vans. It is a proposal that has been lobbied for by vehicle manufacturers and operators wishing to increase their use of low-emission delivery vehicles without losing out on payload or needing to acquire a category C licence. The DfT proposes that standard licence holders be allowed to drive vans weighing up to 4.25 tonnes if they are powered by electricity, natural gas, LPG or hydrogen. It says this will help level the playing field by addressing the payload penalty that puts operators of cleaner vans at a commercial disadvantage compared with conventional vehicles. Launching the consultation, transport minister Jesse Norman said: “We want to make it easier for businesses to opt for cleaner vehicles, and these proposals are designed to do just that.” Road traffic estimates show there has been a rapid rise in HGV traffic over the past 20 years. In 2016 vans clocked up 49.1 billion miles – an increase of 23% when compared with 2006. Ocado head of fleet Stuart Skingsley said: “At Ocado, we are keen to incorporate the latest low-emission technologies in our vehicle fleet, but we have been unable to do so due to the extra weight of the technology and category B licence restrictions. “This vital derogation would allow us to field the latest alternatively fuelled vans, reducing harmful emissions and improving the UK’s air quality.”
Payload is paramount
Iveco alternative fuels director Martin Flach told MT customers are increasingly looking at low-emission vans. However, for those operating 3.5-tonne vehicles, payload remains paramount, and this has resulted in a lower take-up of alternatively fuelled vehicles. “As a key alternative fuels vehicle manufacturer that believes in sustainable transport, Iveco has been campaigning on this for several years, so we’re delighted with the proposal that has been made,” he added. “If the plan is accepted, we believe it would boost the uptake of ultra-low emission vehicles and improve air quality. The vehicles are available, we just need the government to ensure businesses are being given the opportunity 4.9.17 MTR_040917_011.indd 11
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to make the most of them.” His view was echoed by Chris Jones, head of sales at electric vehicle conversion firm BD Auto, who told MT he was pleased the UK was considering a proposal already in place across other European countries. “In the UK, we are lagging behind our European counterparts, and if we are to address the issues of air quality in our cities then action must be taken to remove any barriers to adopting electric commercial vehicles.” He added: “Many of our customers welcome the proposal and several have already lobbied the government on these reforms in order to place electric commercial vehicles on to their fleets.” Phil Eaves, director of supply chain at organic food delivery specialist Farmdrop, said: “Under these proposed changes, more businesses will be able to satisfy the demand for home deliveries without dirtying the air. As the only online grocery company to operate an electric-only fleet, access to larger vehicles would be beneficial to Farmdrop as we can make more deliveries with fewer vehicles.”
Feeling the weight
Gas supply firm Gasrec has also been lobbying for the government to allow extra weight to accommodate alternative fuel technology, and welcomes the proposal. CEO Rob Wood said: “The driving licensing regime reduces the driver pool available for alternative-fuelled HGVs as they often marginally exceed the 3.5-tonne licence limit for category B licence holders. This places a cost and operational burden on the adoption of
new technology despite the wide availability of suitable vehicles. He added: “These vehicles have the potential to make a significant contribution to improving air quality in urban areas and we support the introduction of an appropriate licence derogation to remove this adoption hurdle.” FTA head of licensing, policy and compliance James Firth said that members were being consulted on the proposals. He said some would like to invest in alternatively fuelled vans, but as a heavier vehicle is needed to move the same payload as a traditional vehicle, it pushes them over the 3.5-tonne threshold and brings with it “a raft of regulation”. “However, many have said that compared to the cost of the vehicles, the increased regulatory burdens are not the barrier to uptake.” Firth added: “It is also argued that, if the case can be made that vehicles up to 4.25 tonnes are safe and do not require an increased regulatory framework, then what propels that vehicle should make no difference, and let’s have that deregulation applied to all vehicles.” Peter Harris, director of sustainability, Europe, UPS, admitted that it had been “a challenge” to deploy alternative fuel and advanced technology vehicles for the range and payload that it required in the N1 vehicle and B driver licence category, because “alternative fuel systems, such as electric, affect the overall vehicle weight more negatively compared to liquid fuels such as diesel”. He added: “Allowing operators to maintain payload at the same level as with diesel will encourage the wider adoption of alternative fuel solutions.”
The FTA now plans to consult with all its members in the coming weeks. Van leasing provider Arval questioned whether extra permissible weight would place more responsibility on van drivers and operators. “The question facing fleets is whether they feel it is responsible to place drivers with standard car licences into a vehicle with a mass that has previously been seen as requiring specialised training, and into something that is 750kg heavier and twice as heavy as the largest cars,” said Arval LCV consultant Eddie Parker. “Across the fleet sector, in recent years the discussion has tended to be about whether the driving standards for larger CVs should be applied to smaller vehicles. This proposal moves things in the opposite direction.” In order to relax driver licensing rules, the UK would need to seek a temporary derogation from the EU Third Driving Licence Directive. Some EU states have already done this to allow category B licence holders to drive heavier vans. ■ The consultation on vehicle weights also proposes to remove a current exemption for electric vehicles to undergo MoT testing. It will run until 18 October.
NEW BEGINNINGS: Renault will launch its own 3.5-tonne electric van early next year MotorTransport 11 30/08/2017 10:48:56
Viewpoint
motortransport.co.uk
Time to leave the dark ages behind A Laura Tallett Director of business and corporate Speed Communications
sk people about the transport and logistics industry, and the common view is that the sector is stuck in the dark ages; unlikely to embrace new technology or innovation. From our extensive work with the industry we know this is not the case. It is time the transport industry changes the negative stereotyping that surrounds it, and takes a leap forward not only as innovators but as communicators. There are some simple ways to achieve this. ■ Ensure your website is visual and tells your story: this may seem simple, but it is surprising the number of businesses that struggle to make their online presence visually engaging. Think of this as your shop front – if the windows are dirty and your doorway is filled with cobwebs, you’ll be discouraging people from walking in and finding out more, let alone parting with their cash. ■ Be a leading organisation from the top down: leadership is hard to define, but an organisation
without it is plain to see. It’s not only shareholders that want to see clear lines of expertise throughout an organisation, it’s other businesses and future employees. To be a leading business, you need to embody what that means: embrace innovation; encourage debate; and challenge thinking. ■ Identify and use your business data: the work logistics does is critical to the economic success of the UK. Its broad reach means the industry has unique access to an incredible range of data sources – use these to your advantage to tell your story. ■ Become a content engine – but don’t clutter: there are so many stories to tell, which could be via any type of content – video, blog, direct mail – and any channel, from social media to online news sites and your own website. Use these effectively, but also efficiently. Don’t overload them. Leave people wanting to hear more from you and your business, because of the quality, insightful content you offer.
The newspaper for transport operators
To contact us: Tel: 020 8912 +4 digits or email: name.surname@roadtransport.com Editor Steve Hobson 2161 Editor-in-chief Christopher Walton 2163 Group news editor Chris Druce 2158 Group technical editor Colin Barnett 2141 Aftermarket editor Roger Brown 2168 Vans editor George Barrow 2156 Urban editor Hayley Pink 2165 Editorial team Ashleigh Wight 2167 Emma Shone 2164 Group production editor Clare Goldie 2174 Chief sub-editor Rufus Thompson 2173 Layout sub-editor Grace Wood 2174 Key account managers Andrew Smith 07771 885874 Richard Bennett 07889 823060 Display telesales Barnaby Goodman-Smith 2128 Group sales manager Julie McInally 2122 rtmclassified@roadtransport.com Sales director Vic Bunby 2121 Head of marketing Jane Casling 2133 Head of events/MT Awards Kelly Farley 2135 Managing director Andy Salter 2171 Editorial office Road Transport Media, Sixth Floor, Chancery House, St Nicholas Way, Sutton, Surrey SM1 1JB 020 8912 2170
the NEXT GENERATION SCANIA
PREMIUM REDEFINED
Driverless trucks will only worsen shortage S Steve Hobson Editor Motor Transport
o after years of talks, trials and technical development we are finally to see driverless trucks on our motorways. Well, they aren’t exactly driverless – this is really just another trial of semi-autonomous platooning, where the following vehicles will still have drivers doing the steering. So all they are doing is turning on the adaptive cruise control and twiddling the setting so they can follow the lead vehicle a bit closer. It is pretty well accepted that the technology exists to control a driverless truck on a motorway – after all the US sent men to the moon almost 50 years ago using largely remote control from Houston. The astronauts on the lunar lander only took control for the last part of the descent – most of the trip there and back was driverless, much like modern aircraft. Otto and Anheuser-Busch also demonstrated a driverless truck delivering a load of Budweiser over 120 miles in the US last year. The biggest stumbling blocks to driverless
12 MotorTransport MTR_040917_012.indd 12
vehicles on UK roads are not technical but legal. Questions remain about who is responsible for the vehicle if it has an accident, will insurance companies still cover driverless vehicles and who programmes the ethics into the machine – in other words what happens if the vehicle has to decide whether to save the passenger, another driver or a bus queue? An even bigger problem is that the UK is said to be short of 60,000 HGV drivers, which will only get worse as we head towards Brexit. With all this talk of driverless trucks, who is going to spend £1,500 training for a job that might disappear in 10 years? So, far from offering a solution to the driver shortage crisis, trials of driverless trucks will just make it worse.
Free copies MT is available free to specified licensed operators under the publisher’s terms of control. For details, email mtsccqueries@roadtransport.com, or call 01772 426705 Subscriptions Tel 0330 333 9544 Quadrant Subscription Services, Rockwood House, Perrymount Road, Haywards Heath, West Sussex RH16 3DH Rates UK £125/year. Europe £160 (€235)/year. RoW £160 ($329)/year. Cheques made payable to Motor Transport. Apply online at mtssubs.com Registered at the Post Office as a newspaper Published by DVV Media International Ltd © 2017 DVV Media International Ltd ISSN 0027-206 X
Got something to say?
If you would like to contribute to MT’s Viewpoint, email steve.hobson@roadtransport.com 4.9.17 31/08/2017 11:42:03
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30/08/2017 16:30:01
Pallets
motortransport.co.uk
Principles of growth
As the pallet sector continues to grow, will new networks join the fray, or will existing networks consolidate? Carol Millett talks to key players in the sector.
W
ith no sign of Principle Pallets launching anytime soon and no word from its founders for some months, the prospect of a ninth pallet network is looking increasingly remote. Yet the pallet network market is growing rapidly. APN’s latest figures show pallet network volumes increased 6% in the first half of this year (see box), so why are there no new entrants into this burgeoning market? APN chairman Paul Sanders (pictured below left) believes financial backing exists for a ninth network, but says a major stumbling block is a lack of potential members. “I’d never say never to new entrants to the market, but the biggest challenge is getting the members,” he says. “I’m sure there are funders interested in financing another network, but are there enough good-quality hauliers to create another network? That’s one of the biggest challenges for everyone, particularly with the market growing at 6% at the moment, so it’s even more of a challenge for a network starting with nothing.” Kevin Buchanan, Pall-Ex group MD, goes further, calling the attempt to launch a ninth network from scratch nothing more than “a flawed plan”. He adds: “Having rebuilt Pall-Ex over the past two and a half years, I know how hard it is to get good quality members. “There’s just not the capacity out 14 MotorTransport MTR_040917_014-016.indd 14
there to be able to start with nothing.” He also questions the incentive for members to leave established networks to join one that can’t offer the same freight volumes. “It doesn’t make economic sense,” he comments.
Dual networking
TPN MD Mark Duggan believes that a lack of suitable hauliers also means a new network could trigger a rise in dual networking, which “is generally not desirable for any network if you wish to provide a sustainable high quality service offering”. Pallet-Track MD Nigel Parkes (pictured right) has some sympathy for potential new entrants, recalling that when Pallet-Track launched it had its fair share of detractors. “So, on principle alone, I don’t want to dismiss it,” he says. “However in my experience it’s an extremely difficult thing to do.” Pointing to recent consolidation among networks’ members, he also asks: “If there’s room for another network, why is sector consolidation already going on?” Like Parkes, Palletforce CEO Michael Conroy believes market consolidation is more likely. “The eight networks should become four at some stage,” he says. “Consolidation will benefit everyone – members, networks and customers. It’s already happening at member level and will inevitably happen at network level.” He makes no secret of Palletforce’s stance on the issue. “We certainly have an interest in consolidating, and I don’t think Palletforce is the only network looking to consolidate. It’s
just that we’re the only network prepared to say that,” he says. Palletline MD Graham Leitch agrees the market trend is towards consolidation rather than expansion, but warns: “It’s a difficult thing to do. The City Link and Target Express consolidation shows just how wrong it can go. So it may well happen but not without a lot of pain,” he says, emphasising that Palletline “has absolutely no intention of consolidating.” Consolidation could kill the golden goose by undermining service levels, Parkes warns,
APN FIGURES ON SECTOR GROWTH, YEAR ON YEAR ■ Total pallets up 6% to 6.3 million in Q2 2017 ■ Total pallets up 6.6% to 12.2 million in H1 2017 ■ Next day volumes up 7.3% in H1 2017 ■ Economy volumes up 5.2% in H1 2017 ■ Full pallets up 6.5%, half pallets up 7.7%, quarter pallets up 5.7% in H1 2017 ■ Q2 trunk trailer utilisation (outbound) 80.0% up in H1 by1% 4.9.17 30/08/2017 11:09:06
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Pallets
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THE PALLET WEIGHT CHALLENGE
arguing that “most members run very efficiently and don’t have under-utilised fleets, so if members are asked to cover more territory they have to invest in extra kit or more drivers, which can put them under strain”. And it has to be a win-win situation for both parties, he says, adding: “For example, we’re very strong in London and the South East. We’re keen to maintain that and other networks are keen to join that. But if I have an operator doing 300 pallets, why would I want them to take on 600? How will that affect service levels? “Nothing is off the table in business but both networks have to win. If one network brings nothing to the table – and let’s not forget these are direct competitors – why would you want to be on the losing end?” Palletways chief operating officer Luis Zubialde argues that rising customer expectations could eventually drive market consolidation. He explains: “It’s all about the quality of service that’s on offer and therefore it will be the market that decides whether or not there will be consolidation. Customers increasingly want service excellence, IT and technological innovation and flexibility. Any network not doing that will not survive in this market.”
Standing out
So how do pallet networks ensure they meet rising customer demands and stand out from the crowd? Zubialde says one weapon in Palletways’ armoury is its ability to offer clients an international pallet network service. “The rise of online transactions means customers’ local or national businesses are evolving into national and international businesses and we need to be able to do the same,” he says. “We have 400 members across 20 countries, 114 of which are in the UK, so our UK customers are guaranteed their consignments receive the same level of service with the same type of vehicle, the same quality driver speaking the same language as the receivers and the same management systems across 20 countries.” Leitch points to Palletline’s ownership structure as a factor giving it an edge on competitors. “We’re the only network owned 100% by our members, which means we invest back into our membership. We also operate on a regional multi-hub basis rather than via a superhub model, which I believe makes us more efficient and puts us closer to our customers.” 16 MotorTransport MTR_040917_014-016.indd 16
Technology is key
Technology is one battleground on which all networks are fighting to take the lead, says Sanders. “The traceability of consignments through the delivery process is becoming an essential. That’s where pallet networks are investing and it is what will determine future growth and market share.” The rise of B2C in the pallet network market is driving technological innovation, he adds, pointing to the growth in residential deliveries. “On average this year more than 13% of all pallet deliveries have been classified as B2C, in 2016 it was 12.8%, and almost 15.5% of quarter pallets are delivered to residential addresses.” Buchanan says Pall-Ex will launch an IT platform this autumn that will see the roll-out of an app-based product aimed at strengthening its B2C service. He declines to give details but says the app will allow Pall-Ex to stand out from its competitors in the B2C pallet market. Technological services, such as a two-hour delivery service to B2C customers, are also a priority for Pallet-Track, which is investing £1m in upgrading its IT systems to meet the demands of the B2C market. Parkes adds: “We don’t manufacture widgets. We provide a service so we have to use every tool in the bag to show clients we are ahead of the field.” Conroy says technology is central to Palletforce’s investment strategy. He points to Palletforce’s patented technology system that enables its forklift trucks to weigh and scan every pallet going through the network. “We’re the only network capable of weighing and scanning every pallet and we are taking that to the next level using camera technology to create what we call the pallet selfie,” he explains. “I often think we move freight but we are also in the data business, and that’s
The death of driver Petru Soimu Pop last November, killed when he was crushed by a 1.1-tonne pallet of tiles during a kerbside delivery, has brought into all too sharp relief the dangers to drivers delivering heavy pallets. The APN is part of an industry group working with the HSE to strengthen current regulations on pallet weights. Chairman Paul Sanders believes the growth of B2C deliveries, which often present dangerous kerbside unloading conditions, makes the issue of pallet weights all the more urgent. “We have to establish what is the safe weight. B2C demands a different service. We’re still using traditional B2B service for B2C deliveries and maybe this review will see in a very different service for B2C,” he says. Pall-Ex MD Duncan Buchanan says progress is too slow, describing the pallet weight issue as a “sword of Damocles” hanging over the sector. “To review this for three years is unacceptable. Our industry need to offer leadership. We need to be the ones to set standards,” he says. On a practical level, Pallet-Track MD Nigel Parkes argues that if women are to be encouraged into the industry clear limits on pallet weights are a must. But without legislative backing some firms will flout the rules to gain competitive advantage, he argues. “We need legislative backing to make sure everyone follows the rules – and consequences for those who don’t observe the law,” he says.
where we will spend more money, time and investment. This is because we see technology as a key enabler for our members.” Duggan is another firm believer in the power of technology, pointing proudly to TPN’s Connect service as evidence. But he’s adamant high levels of customer service will trump technological prowess every time. “Customer service is the game and the whole ball park as far as we’re concerned. Everything else is about enhancing or providing great customer service – if you do not have the underlying mechanisms, members and standards to ensure that freight is delivered in the right condition at the right time, then none of the rest matters,” he says. “There isn’t a business in the UK that would equate saving £1 off the cost of a pallet with the cost of losing a customer. So the best way of differentiating yourself is to say ‘we do this job really well’ and prove it.” ■
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30/08/2017 16:20:42
Succession planning
The
disruptive generation
Jon Elliott took over his father’s transport business at 29. Louise Cole asks how logistics looks to the disruptive generation
T
he logistics sector is known to be short of young recruits and it is particularly lacking in young leaders. Jon Elliott, just 29, has taken over as MD of Leicester-based ETS Distribution and, with a gap of two generations between him and most logistics directors, it is no surprise that he sees the sector in a challenging and unorthodox way. Elliott didn’t intend to go into the family business, studying music production at university. However, six years ago he started working in the business and found its challenges appealing. Like many heirs-to-be, he moved up through the organisation as well as around it to learn the business and started to take increasing levels of responsibility. He admits that, as a new MD, he’s often out of his comfort zone, but a comfort zone isn’t something Elliott sets much store by, for him or the industry. “This is a sector of very established business models. There’s been a lot of evolution and incremental improvement but I suspect revolution is coming,” he says. “Logistics is wide open to disruption. It’s a highly competitive, low-margin, highly capitalised business that will soon feel the effects of driverless trucks, of new technologies, of Uber-style businesses.” He warns that family businesses need to think hard about what forthcoming technologies mean for their futures. “If hauliers stay as
18 MotorTransport MTR_040917_018-019.indd 18
they are, they may carry on another 10 or 20 years, but eventually these well-established business models will be completely disrupted. We are changing our thinking now, away from ‘What do we do?’ to ‘What should we be doing?’” He is referring to the idea of disruptive innovation, where innovation creates new business models and often new markets, both of which displace the existing industrial pattern. Key for hauliers is to identify where the value exists, he says, because the current policies of simply driving cost out of transport is not a sustainable strategy. Elliott argues that the sector needs to turn its approach on its head.
Valued products
“When someone says to me that transport has been culturally or systemically undervalued, then what they are actually describing is hauliers overvaluing their product. We always put too high a value on what we do or make ourselves. That statement is actually saying: customers only value us at x, but we think we’re worth y. Don’t be surprised if people don’t value your service any more because of the wider culture. That isn’t a time to look out but to look in. “In haulage we value our trucks, our way of doing things. But we need to change that. We need to see what our market values us at and precisely what they value and whether or not that value has shifted.” This leads to the necessary heresy of haulage – that trucks may not be part of our future. Elliott’s thinking is threefold – that the business is about profit, not specific tools; second, that the value for his business clusters are in order fulfilment, pick and pack and inventory management, with distribution just a necessary adden-
dum. And third, that vehicles will become more application-specific and probably more costly, when diesel is no longer a contender. Elliott thinks the industry must shake itself free of lots of preconceptions or received wisdom. His starting point – “to work closely with customers and add value” – sounds like a standard stock-in-trade response. The specifics are more interesting. We talk about how Amazon has focused on customer needs and so has moved from retailer to logistics provider and publisher, among other things, to provide customers with services they didn’t even know they wanted. “It’s good not to be tied to sector or product labels,” says Elliott. “It’s not about ‘adding value’ but about creating the value. The transport side of the business often doesn’t get to form relationships with customers, but we need to. We need to be imaginative but realistic. Our industry doesn’t have the financial strength to pivot easily because our capital is tied up in assets. But we can change how we have conversations and ask them: ‘What would it look like if we could do this for you?’” The logistics industry has often been as limited as it is liberated by its concept of a service culture. For instance, 10 years ago, logistics companies would tell MT they could shrink customers’ carbon footprint, but they haven’t said they want that. “We need to shift from doing what our customers ask towards guiding the customer to what is possible,” says Elliott. “It’s a long thought process but we are in a capital-intensive business whose value is waning. We need to reinvent that value and that starts with mindset and leadership.” Technological development will be one of 4.9.17 30/08/2017 15:52:12
motortransport.co.uk
the key aspects of this. ETS has an in-house online ordering system that offers tracking and product visibility all the way to POD capture and that works alongside its Connect system from The Pallet Network. “The challenge is giving customers all the information they want in the format they want it and that’s challenging because what customers want is always changing. There’s no doubt that the pace of change and the investment needed is hard to maintain,” says Elliott. If we take into account the driver shortage and potential – probable – loss of European labour; the impending shift to new drivelines and new ways of managing urban distribution; and the cost and sophistication of business technologies, does Elliott think an epidemic of haulage company failures is possible in the near future, as opposed to the steady attrition the industry has seen? “It’s possible,” he says. “It’s a very fragmented marketplace with lots of small companies and many companies that have built their business models on a value that isn’t there any more or which could be better achieved through a step change – and that step change will be disruption.”
The future of ETS
Since Elliott came into the business almost six years ago, ETS has been reimagining itself. The business his father Philip Elliott built over 40 years was very diverse, and this has been trimmed back and consolidated. The business now consists of four main divisions. Palletised transport and distribution includes pallet network work, Hazchem, full loads and groupage. The sweet spot for ETS is between one and 12 pallets. Warehousing and fulfilment is the focus for the next two years 4.9.17 MTR_040917_018-019.indd 19
because this is where the company can offer and create value. It offers relabelling, pick and pack, order fulfilment, container management and cross-docking activities. Elliott has doubled the size of the warehousing operation to 40,000ft2 and maintained its profit margin while increasing the turnover share from 8% to 20% over three years. “I’m pleased with that. It’s great,” he says. The third division is an extension of this value creation principle – offering bespoke services for print media, such as insert control. Finally the company has ETS online, which offers palletised deliveries for small business and individual users. “Our training division had a very good year in 2014 at the height of the Driver CPC, but we could see the market wouldn’t last. So we closed that and brought our driver-trainer across to focus on working with our own drivers on specific accounts. For instance, we have one contract in which the transport is from a thirdparty site to a customer site, and our trainer inducts the drivers there and also goes to model any protocol or operational changes for them. As a result, we have much better and faster adoption of changes from those drivers than we would have by sending an email.” Consolidation was a first step in implementing the changes Elliott thinks necessary to longterm survival. “We are releasing our ties from our idea of the business by not saying, ‘we’ve always done this’ but, ‘why do we do this?’ From there, we focus on our customers’ businesses,” he says. “We’re still working in an established business model,” he says. “But we’re changing it, shifting it, while protecting our service levels.” ■
THE BUSINESS OF SUCCESSION Effective succession plans are important in any sector but evidence suggests that too few regional transport firms have succession plans in place. Jon Elliott’s advice is as follows: ■ Be open and honest about what you want, personally and commercially. “The worst outcome is that succession happens before one of the parties is ready.” ■ The retiring party has to have other interests to move on to. Walking away can be as hard as stepping up. ■ Make sure you have a strong management team in place who can support the incoming MD. “I recruited both our operations manager and our key accounts manager, and I’m very confident in our team.” ■ Make sure the new MD has an alternative support network. “However close the family, there is a challenge in making it yours when it belonged to your parents,” says Elliott. “And there are situations or concerns that you can’t voice to staff, or even family, when you step up as leader. I’m lucky in my group of friends, but I also hired a business coach and I joined a club so I had external peers to discuss things with.”
AN AGE THING: Jon Elliott (left) is now MD and his father Philip is chairman
MotorTransport 19 30/08/2017 16:20:35
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School of truck Samworth Brothers Supply Chain recognised the industry-wide driver shortage wasn’t going to be solved anytime soon, so found the perfect antidote with its Driver Academy
F
or Samworth Brothers Supply Chain, the challenge of ensuring the business met Driver CPC regulations by the industry-wide deadline of September 2014 sparked a change in the company’s training strategy. While it had always provided driver training for its workforce on an informal basis, the business took the decision in 2014 to go above and beyond its legal Driver CPC requirements, and instead upskill its workforce to boost driver performance, safety and fuel-efficiency. To achieve this aim, it formed a Driver Academy training division. National academy
manager Mark Taylor said: “We did lots of work in the academy’s early days to improve the standards of our existing drivers. The concept of the academy started to grow.” Samworth Brothers Supply Chain realised the challenge facing the industry – a shortage of up to 60,000 drivers – would only become more acute unless action was taken to attract talent into the job. At this time, 72% of the company’s drivers were aged over 45. “It became evident to us that our drivers were getting older, “ said Taylor. “We had lots over 50, only a few under 40 and some over 60. We were losing about 20 a
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LINE UP: (below from left) Host John Bishop; Samworth Brothers Supply Chain national driver academy manager Mark Taylor and team; Steve Agg, chairman of the Governance and Standards Advisory Group, Fors (second right), and MT editor Steve Hobson
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Samworth Brothers Supply Chain runs a fleet of 123 tractor units, predominantly 450hp Volvo FH cabs. “We awarded Volvo a big chunk of fleet at the end of 2015,” said Taylor. “We’ll be almost entirely Volvo by the end of this year.” The company was impressed by the total cost of ownership, driveability and driver appreciation. The trucks are complemented by a fleet of 204 trailers, 57 of which are doubledeck floating trailers. “They are always clean and tidy,” added Taylor, “as they are the only promotion for our brand. The presentation plays an important role.”
year through retirement and people leaving the industry. This was worrying as we had a workforce of 220.” In 2015, the business started to devise a strategy to recruit new drivers. However, attracting the right calibre of driver remained challenging, so Samworth Brothers instead shifted its focus to recruiting additional experienced drivers. Working with an agency, it started to bring young drivers into the business, with permanent contracts awarded following nine months’ satisfactory work on the agency’s books. “This worked reasonably well and we had a number of people come through this programme,” said Taylor. “But given the crisis the industry was facing, we decided to create an academy that would bring new talent into the business and potentially be an entity in its own right – perhaps winning business on the merits of its training.” Taylor was recruited in April 2016 to lead the transition, with a remit to bring in 24 new drivers. The company ceased its agency partnerships and instead developed in house a number of routes for both existing Samworth Brothers employees and external candidates. Four routes of entry are available through the academy – Warehouse to Wheels, Car to Lorry, Bakery to Wheels and the Newly Qualified Driver Programme.
External entry
Car to Lorry recruitment offers external candidates with a clean car driving licence the opportunity to train to become an HGV driver, fully funded by Samworth Brothers. The scheme was incredibly popular. A huge number of applicants had to be sifted through and interviewed, to pick those with the passion and aptitude for the role. New entrants to the academy spend three months in the traffic office or warehouse environment to get a feel for how the business works and for Samworth Brothers to assess a student’s work ethic and reliability. Once this phase has been completed, students move to the licence acquisition training programme to obtain their full HGV qualification, including six compulsory tests 4.9.17 30/08/2017 15:43:10
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SAMWORTH BROTHERS: A HISTORY Samworth Brothers has evolved from a one-man pig-dealing firm founded by George Samworth in 1896 to a chilled and ambient food group with more than 8,500 employees. A total of 19 different companies combine to make up the family business, with Samworth Brothers Supply Chain the only non-food division in the group. The company makes fresh foods from Soreen fruit loaf through to Ginsters sausage rolls and, of course, its famous authentic Melton Mowbray pork pies – it produces 85% of those consumed in the UK. Now a fourth-generation family business, it is headed by Mark Samworth.
to pass, such as Class C and Class C+E practical driving tests. This typically takes around three months to complete, says Taylor, before students move on to a post-licence acquisition training and mentoring programme to build up their skills. Once this stage has been completed, with a driver assessment, students are allowed out on real jobs via the company’s green runs – dedicated easy runs for new drivers. “We test them in a big DC where there’s lots of room to make a fool of yourself and try to get on to the bay; it’s a rite of passage for all new drivers,” said Taylor. “Then we reassess them at four, eight and 12 weeks and at the end of this period they graduate from the academy and we upgrade the runs to amber or red, the latter being the most awkward places.”
Internal opportunities
Warehouse to Wheels and Bakery to Wheels are both internal routes to entering a driving career for existing Samworth Brothers staff. While the training process is much the same as Car to Lorry, the initial three-month probationary period is not necessary and the candidates move straight to their licence acquisition training once the required tests and Driver CPC have been passed. Employees remain in their business divisions and are released from work for training when required. Once their licences have been obtained, they transfer across 4.9.17 MTR_040917_020-021.indd 21
The Samworth Brothers Supply Chain division was founded in 1998 as the distribution arm of the food operation. Now a £50m-plus operation, it employs 500 staff in driving roles, warehouse and office functions. The business operates out of four chilled distribution sites in Leicester, Penrith, Callington and Bristol, transporting fresh goods in a same-day operation, and prides itself on its 97% on-time deliveries. While it undertakes a small amount of third-party work, this is mostly to drive fleet efficiencies on return legs or provide value to its customers and suppliers.
to Samworth Brothers Supply Chain. The fourth route to entry is the Newly Qualified Driver Programme, which allows novice drivers to work through a post-licence acquisition induction, training and mentoring programme in line with the other schemes. Since the new training programmes commenced in April 2016, 59 drivers have been brought through the academy from all four routes of entry. “As a consequence, our drivers’ age profile has got younger,” said Taylor. “But we also take older drivers. One of our Car to Lorry drivers was 50.”
Raised premiums?
Despite younger drivers coming on to the workforce, the company has had no issues with raised premiums from its insurance company. Taylor believes “sensible dialogue” is the key, with Samworth Brothers keeping the insurance firm in the loop throughout the process of creating its academy. “We keep them informed of the number of inexperienced drivers that come through and it has been reasonably comfortable with the levels we are bringing through,” said Taylor. The company has seen no increase in damage claims since the new drivers have come on board. In fact, the company-wide focus on driver training has helped reduce accident rates across the board, improve performance and slash CO2 emissions. The company has been awarded an ECO
Stars five-star rating – the highest possible score – for ensuring its drivers and fleet are running as efficiently as possible to mitigate their environmental impact. External verification of the success of the firm’s training strategy has also come from recognition of individual drivers by industry. Samworth Brothers Supply Chain has scooped top accolades from both Microlise and the FTA for driver performance. “We’re being recognised for what we’ve done, not least the MT Awards, which was a big achievement as far as the business is concerned,” said Taylor. “We’ve got to be doing something right. “It was brilliant to be recognised because we have been brave over the past 18 months in particular and its good that industry sees this as a positive contribution.”
Where next?
“What do we want to do next year and beyond?” asked Taylor. He would like to see another 50 drivers recruited and trained in the next 12 months and he will be exploring how the Apprenticeship Levy can play a role in this. Offering its 10 JAUPT-approved Driver CPC courses to external drivers is under consideration for the next year, said Taylor. “The past two years we’ve focused internally and I wanted to develop our CPC trainers. Our JAUPT audit was extremely good and we now have the confidence and capability to offer it externally.” ■ MotorTransport 21 30/08/2017 15:43:41
MT Awards 2017 winner profile Innovation Award
Solutions not problems
DPD has been picking up MT Awards for years, but it never gets lazy
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ultiple MT Awards winner DPD is no stranger to the spotlight at the Grosvenor House in London, picking up three more trophies at this year’s event. It won the Innovation category for a combination of its mobile app, which allows customers to set their own profile, delivery preferences and track deliveries in real time; and its behindthe-scenes Precise solution, which lets online shoppers select a one-hour delivery slot on the day of their choice, dramatically improving the delivery experience. The judges described DPD as “industry leading” in the field of innovation and said it is focused on the requirements of its customers. They praised the firm for its commitment to constantly measure, monitor and improve its products. Collecting the award, IT director Steve Mills said: “Innovation is at the heart of everything DPD does. To improve on getting parcels delivered first time is the core of our objectives.” DPD develops all its products through its programme office and design team, including a team of project managers who work with all areas of the business to deliver a project’s goals and KPIs.
Behind the scenes
DPD also has a data management system – Universe – which houses all its operational data and is the engine behind both the app and Precise. For Precise, DPD has mapped out a matrix for every UK postcode and depot in its network. This allows DPD to plan the availability of slots, by day, by driver route, and by postcode, so it knows how many delivery timeslots can be made available to the consumer. On the day of delivery, DPD applies the chosen one-hour Precise window to a parcel that is passed to the driver’s handheld device and optimised in their route. 22 MotorTransport MTR_040917_022-023.indd 22
Reflecting on the development of Precise, Mills said the idea came out of an innovation session a couple of years ago looking at how DPD could differentiate itself in the marketplace. “A guy in my team, Vernon Adams, presented the concept of somebody being able, at the point of checkout, to choose their onehour delivery window,” he said. “At the time we weren’t mature enough with our app devel-
opment and some of our other solutions. So we shelved it.” More recently DPD and technology investment fund L Marks launched start-up accelerator DPD Labs, which ran an innovation session where a similar concept was proposed. “We thought we don’t need to outsource this; we could easily achieve it. Not least because some years ago we launched Predict, our 4.9.17 30/08/2017 11:13:24
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Host John Bishop, TruckForce business manager at Goodyear Bob Mason, DPD director of IT Steve Mills, and MT editor Steve Hobson
ground-breaking one-hour delivery window. “It wasn’t the cheapest thing in the world but a lot of the back-end technology was already available.” But to take this limited premium service and make it available to DPD’s millions of end recipients at the time they placed their order on a retailer’s website was still a tall order. “The two biggest challenges regarding Precise were to create a manageable matrix that was easy for the depots to maintain and manage, based around their operation or where their drivers were; and secondly, to try and push it into the retailer’s checkout area – that was the holy grail.”
Availability
Since its launch, take-up has been rapid among DPD’s largest retail customers. “Three highprofile retailers are using it and more are coming on board all the time,” said Mills. “It’s a standard plug-in solution so we don’t have to do any configuration. “Although we had some ideas about Precise a few years ago, it became the logical thing to do after the app. Because everything we did was about giving the consumer, the person who is receiving the parcel, flexibility about how they want their delivery.” Precise is a development of the Predict system launched in 2009, which enabled DPD to introduce the then game-changing innovation of giving recipients a one-hour delivery window on the day of delivery. “In terms of the way we designed the optimisation engine, it was a tweak to an existing rule,” said Mills. “The biggest challenge about Precise is, depending on the volume, some operational inefficiency. But, for the greater good of winning and retaining business, it’s worth making that sacrifice. That ultimately is what it’s about. But the more volume you get, the more efficient you become in operation.” 4.9.17 MTR_040917_022-023.indd 23
Precise has secured Next as a new online delivery customer. “Now we’ve got a proposition that is attractive to it and to its customers,” said Mills. Allowing the end recipient to choose their delivery window has also ratcheted up DPD’s first-time delivery rate closer to the ultimate target of 100% – and zero failed deliveries would also be worth a small loss of routeing efficiency. While not essential to the success of Precise, the DPD app improves the experience for the parcel recipient and gives DPD the all-important contact information. Take-up of the app has been phenomenal, with 1.7 million downloads in its first year and, with the sign-up rate still running at 5,000 a day, two million downloads is not far off. The app avoids the pressure to collect consumer contact data at the point of sale. “Now we’ve got 1.7 million records, we can interact with people, not just as a one-off parcel delivery but for every parcel delivery,” said Mills. “Before it was at a parcel level – now this is at a personal level, whether it’s DPD or DPD Local.” To encourage take-up of the app, there are a range of in-flight delivery options available to users that cannot be accessed without the app, including a 30-minute delivery notification and the option to leave with a neighbour – or avoid a specific neighbour. Users can also get straight through to the customer contact centre by phone or live chat via the app. DPD encourages consumers to turn on location-based services on their phones so it can attempt a same-day redelivery to any recipients who were not at home when expected. “As soon as you turn that on, I can see where you are,” said Mills. “So after a driver has completed his route and is driving back at the end of the day it comes up on his handheld that the following people are now back at home and he can make a return visit.”
Another benefit of the app is that DPD can use push notifications rather than text messages to let recipients know when their parcel is on its way. The personal relationship offered by the app will allow consumers to request delivery to an alternative address provided it is within the territory of the delivery depot. Another development being worked on in the innovation lab is a better system for retail customers to view and book long-distance trailers to collect parcels. “They will be able to book directly off our system, and get additional trailers,” said Mills. “That will be put out to the group, but it’s also a product we’ve built for the market so we are talking to other industries and carriers about it.”
Next time around
Now DPD has perfected its consumer app, next on the radar is a new driver app, designed for use on any smartphone to replace the current Saturn handheld driver terminal. “We’re redeveloping the driver app that will work on a smartphone,” confirmed Mills. “Most manufacturers in the ruggedised space are Android-based. They’re moving away from Windows Mobile, which technically is challenging and that’s what we’ve got. “One day drivers will bring their own device and we’ll give them the app to go off and deliver parcels – we are looking at this for temporary drivers in the peak rather than buying or renting additional devices. To further improve our strategy of getting the delivery right first time this app will allow consumers and drivers to make contact to ensure a successful delivery, especially if the drivers needs more information to aid the delivery.” Even after a frenetic period of innovation, don’t be surprised if the firm is a strong contender for this award next year – innovation runs through DPD’s veins. ■ MotorTransport 23 30/08/2017 11:13:47
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promoting sustainable urban deliveries
Cities are becoming smarter, with rapid technology advancement creating both opportunities and challenges to the traditional freight sector. What will the ultimate urban delivery vehicle look like? How will the harnessing of big data impact operators? How do logistics firms transition to a zero-emission model? Our seminar programme will address these and other topical issues. Alongside this, the exhibition is moving into the Great Hall as more vehicles, equipment and technology emerge onto the market to make urban deliveries cleaner, safer and quieter.
FREIGHT IN THE CITY EXPO 7 November 2017
Alexandra Palace, London
Register for your free place today freightinthecity.com/expo-2017 In association with:
and supported by:
@freightincity
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RHCV Apprentice of the Year named A 20-year-old apprentice from Renault dealer RH Commercial Vehicles (RHCV) has been named as the manufacturer’s 2017 Apprentice of the Year. Gage Sludds (pictured) joined the East Midlands distributor when he was just 16 as an apprentice HGV technician, a scheme that runs in conjunction with nearby Stephenson College. Now a junior technician, Sludds followed his grandfather, who also worked in trucks, into the industry. Sludds said: “Winning Apprentice of the Year is such an exciting achievement – I was very shocked to have won, I didn’t expect it! RHCV has been such a great place to start my career. It’s a real family business and I’m part of a brilliant team that is massively supportive – we all have a great laugh together.” RHCV’s dealerpoint manager David Templeman said the Alfreton-based branch was “thrilled that Gage has won this well-deserved award”. Templeman added that RHCV employs 11 apprentices in the East Midlands and the business was “passionate about nurturing local young talent and helping our apprentices to grow and develop in their careers”.
control, could be beneficial to the business. FleetSource has trained 1,400 A-Plant drivers since 2016. A-Plant director of transport services Shaun Winstanley said: “We knew they were the right provider to manage our driver training in line with our long-term projects and help us achieve our training goals. “They were professional, helpful and met all our training needs, so they were the ideal provider to deliver such a vast training programme.”
Andy Turner joins Axis Fleet Management Axis Fleet Management has appointed a new operations director to support the growth of the rental firm’s market share in the UK. Andy Turner (pictured) joined Axis in July with more than 35 years of industry experience. Of those, 27 were spent at MAN Truck & Bus, where Turner held roles including head of UK network development and head of UK support. Turner joins Axis after a number of new appointments at the business, which hired four new regional business development managers earlier this year. He said joining the business was “an exciting opportunity, and I look forward to developing key operational objectives to ensure we continue to provide the highest level of service to our customers”. Axis Fleet Management MD Mick Ledden praised Turner’s “extensive specialist knowledge of repair and maintenance processes and fleet management systems,” and added: “We’re very excited to have someone of Andy’s experience and reputation joining the business in this senior leadership role.” 4.9.17 MTR_040917_025.indd 25
By David Coombes
The 10-day recruit – failure or success?
FleetSource wins A-Plant CPC deal Construction equipment firm A-Plant has appointed FleetSource as its main provider for Driver CPC training. The plant tool and equipment hire company, which is a FORS gold operator, provides mandatory driver training at its dedicated teaching facility in Chesterfield. However, after a recent review of its transport systems, A-Plant found that more training in various areas, including tachograph infringements and MPG
Staffing Matters
Hiring and firing are two of the more stressful parts of running a business. The mechanics of going through a recruitment process are painful enough, before you add in the prospect of hiring the wrong person. Despite the various solutions, which now flood the recruitment market, we all know examples where the wrong person has been appointed. But how long does it take to realise that? For senior positions there are normally approximately four interactions during a recruitment process. That might seem a lot to the candidate, but to an employer it’s a short time to figure someone out. That is why recruiters are so keen on personal recommendations, why jobseekers should carefully manage their networks, and why recruiters with experience in a particular field are worth their fee. In that short time, the employer wants to know the candidate is good enough technically, the right kind of character to fit with the team, someone they can work with, and somebody who can improve and grow the business. Nobody said securing a new job was easy! But the infamous Trump v Scaramucci case got me thinking. Can you know after 10 days if you’ve appointed the wrong person? In some cases it’s clear. Gross misconduct is always gross misconduct, irrespective of whether the person has been employed for 10 days or 10 years. But should employers expect as much from a new recruit as a long-term employee? You might think a new employee would be on their best behaviour and so it is only likely to go downhill from there, but the first two weeks of a job are stressful and challenging and an individual might be expected to make the odd mistake. Working in recruitment and HR solutions, I see the value in getting the process right up front. Better to take a little more time and care on the recruitment than end up worrying about the legalities of dismissal.
Tel: 0117 9859 119 logisticsjobshop.co.uk admin@logistics jobshop.co.uk @LJSJobs MotorTransport 25 30/08/2017 15:26:04
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