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City Link: don’t blame your losses on subbies

10th March 2011, Page 18
10th March 2011
Page 18
Page 18, 10th March 2011 — City Link: don’t blame your losses on subbies
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Which of the following most accurately describes the problem?

WHAT A LOAD of bunkem from City Link claiming that it was their use of subcontractors that caused its losses (CM 24 February).

Its statement must translate to taking on more work than they could handle at prices lower than it cost to conduct it.

It seems to me that small hauliers form an almost perfect market working for the tightest margins.

Big companies are trying to cream a margin out of their efforts, and it is an industry disease. The smart suits have even given the biggest ones a posh name for it – 4PL.

All credit to the big irms that are prepared to invest in their own kit to run their businesses and the small ones that have to.

Mark Carrington MD, King Vehicle Engineering Leicestershire