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156 
FURNISHING TRANSPORT FOR FURNITURE
Page 79
Page 80
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A Brighton manufacturer has found that running his own transport fleet helps to enhance business — but back loading just doesn't pay,
By Johnny Johnson
IN SALES TERMS, selling British furniture to Swedes must rank second only to selling refrigerators to Eskimos. But this is the measure of achievement reached by a Brighton company, Jaycee Furniture Ltd, and what, is more it has found that using its own transport has been a telling factor in its success. Some of the credit for the company gaining the Queen's Award for Industry, this year, must be given also to its planned transport policy.
Only in one transport sector has the company been unable to achieve its objective but many operators have found that back-loading is not as attractive as it might first appear, particularly from Continental sources.
Jaycee manufactures high-quality reproduction furniture and the company has grown quickly since 1966 when it occupied its first factory in Woodingdean, Brighton. Now, it exports over two-thirds of its production to Germany, France, Holland, Belgium, Austria, Italy, Sweden, Switzerland, Canada, the USA and Australia and only to the last three countries does it use containers, deliveries to all the others are made in the company's own vehicles.
Its fleet comprises eight tractive units, 11 trailers. seven rigid pantechnicon type vehicles, and a boxvan. Three of its tractors are Volvo F86s, three are Ford D800s and two, which are used for local United Kingdom work, are Seddons. There is another similar Volvo on order.
The trailers are mainly of York manufacture but there is a Merriworth flat which is used to transport timber between the Woodingdean and Eastbourne factories.
The Bedford CF boxvan and the Ford pantechnicons are used for internal United Kingdom deliveries.
Return loads With the advent of operators' licensing in 1968, which opened up the possibility of former C-licence holders to carry for hire and reward, Jaycee counted itself fortunate, at first, in securing return loads. The revenue to be derived from transporting shoes from Italy and toilet rolls from Sweden could have made a significant contribution to its own transport cost economy which would have an obvious effect on the price of its own finished product.
However, it soon found that it was being denied the convenient use of its own transport.
Delays of one, or even two, days in picking up the return loads, added to the time spent in delivering them in the UK, seriously affected the availability of the vehicles. This more than offset the financial contribution which the traffic made to the vehicles' operating costs and the company was reluctantly compelled to abandon the practice.
Though Jaycee now runs the fleet for the convenience and guarantee of delivery that own transport operation provides, it is still cost conscious and mindful of the effect that transport costs can have on the price of the finished product. The company is, therefore, constantly examining areas in which _transport economies can reasonably be made.
One of the principal savings it has been able to make, because it operates its own vehicles, is in the elimination of packing.
High-value furniture is susceptible to damage and scratching and this makes packing essential if the traffic is to be subjected to the handling hazards normally encountered by unaccompanied export traffic.
There is no real alternative to the use of containers for the furniture destined for countries such as Australia, the USA and Canada. Packing must therefore he used. However, Jaycee is experimenting with stout brown paper wrapping for this traffic in place of the cardboard cartons previously used.
It has been found that furniture carried in its own accompanied vehicles to Continental destinations travels quite well unprotected, apart from felt jackets and over-blankets. The resulting saving has been considerable.
Choosing the ferry service which places its vehicles on the Continent at the most convenient point for its sales outlets has given Jaycee the benefit of another transport cost economy.
Cheapest fuel Despite the proximity of its factories to Newhaven, Jaycee uses the DoverBelgium crossing. Transport manager, Keith Beetlestone, told me that Belgian fuel is now just about the cheapest in Europe and, on agency cards, the company pays only about the equivalent to 20p a gallon for the fuel which drivers buy on landing in Belgium and again on the return journey.
Thus, by controlling fuel costs wisely, the company is able to contain what is without doubt the largest of the running cost factors and maintain the cost of the furniture at a competitive level.
A saving in turn-round time is made by the drivers allowing the staff of the ferry vessel to wash their vehicle during the crossing.
Apart from the time saved, this is useful because the company attaches great importance to the clean, smart appearance of its vehicles. Mr Beetlestone told me that the delivery of the company's product in remote European towns, for instance, by a vehicle which bears the Jaycee logo and which has obviously come a very long way to make that delivery is very good for business.
Since the Community transit system became generally available to British operators, in January this year, Jaycee has used it for exporting furniture to Continental destinations in preference to the TIR Customs convention.
TIR approved All the company's vehicles are TIR approved so that all are available for operation to non-EEC countries for which the TIR convention must be used. For operation under the Community transit system the only requirement as far as the vehicle is concerned is that there should be points on the vehicle to which seals can be attached.
Documentation, too, is simple. During the transitional period of Britain's membership of the Common Market, the company uses Community form no.T3L which has been given the UK Customs reference C.1123 — the reference by which it should be requested from the Customs and Excise office.
The reduction of Customs duties on British exports to the original Common Market countries began on April 1 this year, and they will continue to be reduced at the rate of about 20 per cent a year till July 1, 1977 when all such duties will be abolished.
UK Customs form C.1123 certifies that the goods to which it refers are eligible for the reduced rate of duty.
Although this system is still optional for the British operator and the TIR convention may be used if preferred, it has obvious advantages and the operator need not be a member of the appropriate transport trade association to participate as with TIR. Nor is there any need for the vehicle to be given formal approval by the Department of the Environment inspectors.
In a fiercely competitive environment Jaycee has proved that operating an ownvehicle fleet sensibly and paying due regard to costs can be of inestimable value in promoting and retaining business.