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Picking up the pieces
Page 40
Page 41
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During the recession, many hauliers have stepped in to pick up the pieces when others have gone under. It's a great chance, but not without its own specific challenges.
Words: Louise Cole Picking up contingency work from failed transport companies takes agility, well-tested procedures and an established presence in the market.
It is unclear if the big wave of business failures is behind us. but with the UK economy slowly picking up, it's worth making sure your local presence is big enough that any client having problems with its current supplier might seek you out.
'There is historical precedent for a smaller wave of failures when firms try to build volume after recessions, particularly if the credit market takes longer to recover its confidence than those demanding transport, and, therefore, additional capacity CM has spoken to two companies who stepped in when another transport supplier collapsed, and asked what the challenges were. •
When transport supplier JDF Logistics went bust last winter, Norbert Dentressangle (ND) was asked by North Yorkshire brewery Black Sheep to take over the account in record time.
Business unit director Dan Myers says: The aim is to protect service levels to the customer's customer, and to react appropriately within very tight timeframes. There is a fine art to it."
You have to look at the critical elements of your operations and make sure they are right. Whenever we take on a new client, we also look at what we call our accelerated project plan, so, if there are issues, we can step up quickly.
"Ideally, you can get to plan contract fulfilment properly and test elements first, but Black Sheep was definitely one we had to take on much quicker than we would have chosen to. We met on 4 November and started operations with stock intake two days later, and deliveries two days after that."
Luckily, one of ND's clients was in its off-peak season, so there was some temporary spare capacity at its Buxton premises. "Since then, however, we've had to buy in more racking to cope with all the product," reveals Myers. "We put our more highly trained and regular staff on the Blaci Sheep work and backfilled their positions in the transfer period.
Black Sheep was formed by Paul Theakston following the sal( Theakston family brewery. Black Sheep produces a range of f iv bottled beers, including Biggwelter and Golden Sheep ale, as v as the original Black Sheep, which are sold in off-licences and major supermarkets throughout the UK.
ND is storing approximately 140,000 bottles of beer at its distribution centre in Buxton. Myers says that usual shipments are between 800 to 1,200 pallets a week, although the peak for beer deliveries is Christmas.
Transferring so much product at once from JDF's Barnsley siti Buxton was not without challenges. "There can be stock issues
"Engaging and involving the custome is crucial. Keep them up to date with progress its critical"
transfemng from an incumbent [logistics supplier] anyway, but you do have to take special note of case-counting and potential damage in a situation like this," says Myers, adding that everyth should be systems-driven. If your systems are right, then you wi be able to handle it.
Myers is personally glad the company took on Black Sheep: "You should try it," he advises. "I make it a policy to be familiar with all our customers' goods and, having been pea tasting with Birds' Eye in the past, I can safely say Black Sheep is one of the more enjoyable products we ship."
Advice for those who may find themselves taking over a contract midstream? "Engaging and involving the client is crud he states. "Keep them up to date with progress and explain whz happening it's critical. They will be much more understanding the challenges involved if they are engaged throughout."