Tim Pickford – Operations Director here at Dextra Group discusses…
Mention own account trucking operations to an accountant in today’s world and they cringe, but why? Is it a huge cost or is there value to be brought to your business. It’s very easy to see the costs but how much repeat business does an own account fleet actually earn. Over the years own account operations were all the rage, big manufacturers had large branded trucking fleets driven by company ambassadors, fleets that most 3pl hauliers would be proud of. So what has caused the change?
The culture change in the last decade was mainly brought about by changes in the lighting manufacturing process. This was due to manufacturing outsourcing to the far east for cost reductions or the selling off of British manufacturing companies to foreign competition. With processes transferred abroad, the supply chain changed dramatically and own account operations closed in favour of manufacturers subcontracting their global distribution operations to 3pl or 4pl logistics providers.
These subsequently import the finished product in (FCL) full container loads and emptied them into large shared user distribution warehouses which offer bespoke pick and pack facilities. Distribution of product would be on shared user trucks to their final destination. This is all very efficient but has brand awareness and customer focus been lost on delivery, relying on queries to be dealt with through a Customer service call centre line rather than a trained helpful driver? This delivery is short? When is my next delivery? Can you take the empties?
So is there a benefit of a UK manufacturer running an own account transport operation.? The answer is, of course, YES. Bucking the trend in the UK is a strong pocket of manufacturers still relying on their dedicated fleet of trucks to distribute products internationally. So why do these manufacturers still choose to use a dedicated fleet over a 3pl provider?
It’s all to do with value added business and the flexibility an own account fleet can give you that a 3pl cannot. Put a driver into a truck and send him on his way with a delivery. Job done. But is it? If the truck is too large to make the delivery or the goods are on the wrong deck of the lorry and the delivery location has no forklift then things are going to go wrong very quickly with a rather upset client. It’s easy to just specify an 18 tonne curtain-side truck or a tractor unit and trailer off the shelf but is it actually fit for the purpose and cost effective?
To operate an own account operation efficiently you need to understand your business, your customer requirements and your current supply chain demands. This information will determine the equipment specification for your business and specifying the correct pieces of equipment for the job will determine the success of the operation. The equipment specified should fit the operation and not the operation fit the equipment.
Brand the vehicles in the latest livery, place a driver in the vehicle that has been trained by your business and you have front line customer support with a direct link to the office. The delivery driver is often the only interaction the end user will have with the company.
A well turned out truck, delivering well packed goods on time with a helpful driver, will always portray a well organised professional company. A selling point you can’t put a price on!
