Aspray24 is a family-owned haulage and logistics firm that believes
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keeping control of as many aspects of its business as possible is the way to keep its customers satisfied, efficiencies high and costs controlled
Words: Steve Hobson / Images: Tom Cunningham UK manufacturing had a rough time in the last recession, but Aspray24 has maintained an impressive track record of profitable growth by staying true to its founding principles of providing reliable delivery services for the manufacturing sector.
The firm is obsessive about keeping as much of its operation under its control as possible. This approach includes having a full-time fuel manager tasked with getting the best daily deals on diesel, developing its own routeing and scheduling system after being burnt when a previous third-party software supplier went bust, and doing most of the vehicle maintenance in its own workshops at its 12-acre hub in Noose Lane, Willenhall.
Even more importantly, the company took a strategic decision in 1999 not to join a pallet network or other consortium but to develop its own 13-strong national depot structure to keep end to end control over its customers’ consignments.
Founded in 1982 by Patrick Laight, the company remains privately owned, with chief executive Patrick and his son, MD Stuart, very much hands-on.
Back in 1982, Willenhall was the world centre for the manufacturing of locks and associated hardware, and Aspray24 started out serving this specialist market.
“Manufacturing gave us a springboard to grow rapidly,” says MD Stuart Laight. “The development of next-day distribution in the UK forced our hand and we grew rapidly between 1982 and 1992.” As UK manufacturing began to feel the chill winds of low-cost competition from eastern Europe and the Far East, Aspray24
diversified into logistics and interna
tional traffic. “Our customer base followed the general tide of UK manufacturing, moving to China primarily, and they were saying ‘you do our home market, can you assist with our peak demands and managing the supply chain from receiving containers, storage, pick and pack, etc’ and so Logistics was born,” continues Laight.
After downsizing and trimming any fat as the recession struck in 2008, Aspray24 has now begun investing in expanding the business again.
“In the past 24 months we have got to a stable situation and taken out cost, which was painful,” says Laight. “We then turned the corner and rebranded to Aspray24, which dovetails with bringing logistics and now international into the fold.”
Focus on next-day delivery
When it comes to what makes Aspray24 special, Laight is quite clear. “Our focus will always be next-day distribution, but we can also manage a logistics supply chain and international freight,” he says. “The USPs we have always banged the drum about are independence, inancial stability and our network from Inverness to Lands End. We can carry anything from a Jiffy bag, carton, bundle, pallet, part and full load and anything in-between all on 9am, 10am or am-next-day services.
“Most other companies that front that up, even the large ones, don’t do it in reality. They would put their pallets via one stream, their Jifies via another and their mixed trafic via another. We have a unique proposition for a speciic sector of industry.” While Aspray24 initially focused on its Midlands heartland, this area now represents just 25% of its business, with the rest coming from the remainder of the UK or overseas.
A typical night would see 600 to 700 tonnes of freight move through Aspray24’s Willenhall hub. This would be made up of around 20,000 items, of which 70% would be cartons, 20% pallets of all shapes and sizes, and 10% bundles and bags.
Speeding the flow
The company has invested in an automated sorting machine to speed the low of cartons through the hub and allow later collections – up to 5.30pm in most parts of the country and later for many, while still guaranteeing next-day delivery nationwide. The service has clearly struck a chord with customers as the business has grown steadily despite a blip in 2008/09.
“In 1992 we were doing £11-12m a year,” says Laight. “The takeover that year put fresh impetus into the business and we progressed steadily, so by 2008 we were on £23.5m. We saw the recession early and as a board took proactive steps so although 2009 turnover was 10% down we had taken out 17% of costs and we were still proitable. We knew 2009 would be challenging, but we would be more proitable because we had made the hard decisions.” By reinvesting proits in the network, growth returned in 2010, turnover was up 22% to £26.5m and pre-tax proit doubled to £1.8m. “This year is still very challenging, but I think we will put on another £2m in new sales,” says Laight. “We have segregated our customer base to see how they have been affected and how they will bounce back.
“We do see a sustained, albeit small, recovery in 2011. In January we started six new accounts – all manufacturers – so while we are not doing cartwheels, a lot of other companies would be having a party to celebrate how well they had done. We are ideally positioned for when the economy starts motoring and there are some decent prospects in the pipeline.”
Increase in imports and exports
As well as UK-based movements, Aspray24 is seeing good volume increase in both imports and exports.
“The weakness of sterling has made exports more competitive for UK businesses and this year started like a train for export,” says Laight. “I do think there is more export potential. What is clear is that more of the customer base is operating on a global scale and we want to be associated with either the import or export side.” According to Laight, many manufacturers are still reluctant to hold stock, preferring to use a reliable next-day delivery service instead. “After the UK destocked in the recession, we still see a pattern where nobody wants to hold stock, so people just order what they need rather than putting stuff on the shelf,” says Laight. “There was a suggestion that we would move away from next day, but in fact because people aren’t holding stock the opposite has happened and it is more important than ever to get it on time in full.” Aspray24 is justiiably proud of its delivery record, which stands at 98.5% on time with only 0.2% claims for loss or damage, something that Laight attributes to the company’s policy of keeping control.
Developing a national network
“That is why we developed a national network rather than join a pallet network,” he says. “That has always been our focus – keep control ourselves. It was 12 or 13 years ago that the board decided not to get involved in pallet networks. We did get a lot of interest from them, and still do. That control is one of our major selling points because the end user ideally wants one delivery from the supplier rather than the pallet coming with one company and the parcel coming with another. Our strength is that no matter what the end user orders from that product range it will all get delivered at the same time on one vehicle.” While Aspray24 would never claim to be the cheapest option for many customers – Laight says competitors regularly try to undercut his rates by 20% – the company has invested heavily in IT to manage and control costs.
Operations director Ian Barclay says: “We only have three costs – people, our biggest cost; fuel, which is a big and increasing cost; and our vehicles, which is manageable to some degree because we know the maintenance costs are ixed.
“So it is how we manage those three things that makes the difference – and the bottom of the barrel is pretty close. There is a limit to what you can do with those three variables.” The company also spent £2.8m on new leet last year when many operators were preferring to lease or run vehicles into the ground.
Future problems
“That’s a short-term and a wrong decision and if you can afford it you still replace, because otherwise all you are doing is storing up a problem for the future,” opines Laight.
Aspray24 is a loyal DAF buyer, currently running 300 trucks plus a handful of panel vans and 117 trailers.
“We run drawbars and 38t artics on trunking because, despite the fact a lot of our product is heavy weight, a lot is also bulky stuff,” says Barclay.
“We have 18 drawbars and are getting another couple – they work pretty well at White City for example, which is
a small depot at 13,000ft2 and you want them to get into
the city.
“The prime mover is used as a delivery vehicle during the day but it is a trunking vehicle overnight as well. “They are a real success story in our smaller depots and are doing 180,000km a year.” The rest of the leet is made up of 160 7.5-tonners, 30 11-tonners, most of which have taillifts, 30 18-tonners and 54 tractor units.
Organic growth
The company has also had success with its leet of SDC aerodynamic trailers, says Barclay: “We run doubledecks with sloping fronts on trunking – they have done very well, though they are expensive to run. All our leet are curtainsiders except the 15 panel vans.” With the company’s inancial strength, it could have grown by acquisition rather than relying on organic growth, but Laight says: “That’s not our intention as we don’t wish to be the biggest transport company in the UK.
“It’s about proit focus, stability, continued growth, constantly moving, looking at the next challenge.” ■