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Sharp ■ Informed ■ Challenging
Parcels firm is the latest in a string of transportation businesses to fail
Jobs at risk as Menzies Parcels set to close By Carol Millett
DECEMBER 2023 £10
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Staff at Menzies Parcels are facing redundancy as parent company Menzies Distribution prepares to close down the loss-making business next month. Menzies Parcels employs around 270 staff and provides courier services to the Scottish Highlands, Islands, Grampians and Argyll. It operates 15 depots throughout Scotland and handles around 8,000 parcel deliveries and 800 parcel collections a day. The company stated: “The business has been incurring significant losses over the last two years and, having exhausted all other options, has come to the disappointing conclusion that it is no longer sustainable in its current form. “Therefore, working with our employees and customers, we regret that the last day of business for Parcels Scotland will be 29 February 2024.” Menzies Parcels’ latest annual results, to 31 December 2022, revealed spiralling losses of -£3,221,000 (2021: -£788,000). Revenue also fell, from £22.6m to £19.6m in the period. The news comes in the wake of a Creditsafe report showing a
15.9% rise in insolvencies in the transportation and storage sector during 2023. Notable casualties over the past few weeks include Norfolk haulier Bomford Group, which appointed administrator Kroll Advisory on 22 December. The company holds a licence for 70 HGVs and 140 trailers out of three operating centres in the county. Its last available set of accounts showed that in the year ending 31 December 2021 turnover had fallen 8.5% to £13.3m with a reported pre-tax loss of £618,000. The company said it had been affected by the driver shortage and that operating costs and a reliance on expensive agency labour also eroded its margins. On 21 December, pallet distribution and warehousing firm WH Barley (Transport and Storage) appointed administrator FTS Recovery. Emma Barber, chief executive of the Milton Keynes-based firm, blamed “financial challenges” for the firm’s collapse and said “increasing cost pressures are reaching breaking point for many hauliers”.
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“Freight volumes are down by 10-15 percent with fewer goods being moved around as the cost of living bites,” she added. “Costs are still rising faster than inflation, profits are meagre, and hauliers are saying that customers are not wanting to pay reasonable prices.” A group of former employees have since launched legal action against the company, claiming it failed to consult with them ahead of making them redundant. Shropshire-based WJ Capper Transport also called in administrators last month, only weeks after agreeing a Companies Voluntary Arrangement (CVA) with creditors. Meanwhile Kent-based FORS Gold haulier HMF Services (Transport) called in administrators on 20 December. The family-operated firm, which employed around 26 staff, held a licence for 12 trucks and two trailers.
WINNING WAYS: The 2024 Motor Transport Awards are now open for submissions. Entries close on March 28 and the winners will be revealed at the Grosvenor House Hotel on September 4. After introducing two new categories in 2023, the New Talent Development Award and the Sustainable Transport Award, the 19 categories in this year’s awards are the same as last year. The criteria have been updated, however, so please make sure you read the entry requirements carefully. The MT Awards are open to any own-account and third-party fleet operator running 11 or more commercial vehicles, and small to medium size companies have been just as successful as the larger players over the years. Entries to the Awards remain free and operators can enter as many categories as they feel they have a chance of winning, as long as each entry is different. A recording of a webinar giving companies guidance on how to prepare a successful Awards entry is available at mtawards.co.uk
Focus: business barometer p8 Viewpoint: technician training p10 Recruitment p12 Totalkare profile p14 MT Awards p16
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Former Palletforce chief will oversee firm’s ‘next phase of development’
Conroy appointed new Kinaxia boss By Carol Millett
’Abnormal’ safety breaches deliver ban for transport manager A transport manager who ignored safety measures previously arranged with the police to move an abnormal load on roads in Essex has been banned for life. A dispensation was granted for the company to transport steel tubes measuring up to 50m long under self escort. However, in December 2022, an abnormal load was witnessed by police travelling along the M25 without any of the extra safeguards in place. The company had undertaken six movements in the preceding days, all of which breached the dispensation. The transport manager was fined £5,800 before the case was passed to a public inquiry, where he was banned for life and dismissed from his company role. 15.1.24
company EV Cargo. He left this position after only four months due to “a personal decision”. Kinaxia has also invested over £2m in Iveco S-Way tractor units for its primary division, replacing diesel vehicles in the fleet. Richard Smith, MD of the divi-
sion, said the new vehicles make up 10% of the primary fleet, with more on order. The company has also agreed a three-year contract to provide UK distribution, warehousing and other services for Ansell Lighting.
The DfT is planning to split the Driver CPC into two, with a new National qualification (N-DCPC) for drivers working only within the UK, and an International version (I-DCPC) for drivers also doing international journeys. For the N-DCPC, there will be more flexible options to meet the requirement to complete 35 hours of training every five years. Current training courses must be a minimum of seven hours or two 3.5-hour sessions that must be completed in two consecutive days. Under the new proposals the minimum duration of a training course will be removed and when a course is split the requirement to complete it across two consecutive days will also be removed. In addition, there will be more flexible ways to use e-learning to renew an N-DCPC. Currently, a maximum of two hours of e-learning is permitted per trainer-led course, allowing for a maximum of 10 hours of e-learning in every 35 hours of DCPC training.
Drivers want HGV levy funds spent on truck stops Most drivers want funds raised through the HGV levy to be reinvested into truck stop facilities, according to a survey. Following the reintroduction of the levy in the summer, a poll carried out by digital marketplace SNAP found drivers are unsure where the money is going. In addition, 75% of those surveyed said they wanted to see the money spent on lorry parks – from better facilities and higher security measures to more stops available across the UK. The HGV levy was rolled out again on 1 August, with a new emphasis on emissions, weight and time spent in the country. Rates vary from between £150 to £749 per vehicle, per year. The department for transport (DfT) said it was aimed at making sure lorries made a contribution reflecting the wear and tear of the road network.
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Former Palletforce and EV Cargo chief executive Michael Conroy (pictured) has been named as the new chief executive of Kinaxia Logistics, succeeding Simon Hobbs. The company said Conroy had been recruited to “spearhead the next phase of development for Kinaxia”. Outgoing Hobbs said: “We achieved a great deal despite the challenges we faced, and have brought a great business closer together. Kinaxia is now recognised in the UK market as a fresh and capable logistics provider and is well-positioned for its next phase of growth.” Conroy led Palletforce for 13 years before being promoted to UK chief executive at parent
DfT eyes ‘split’ to Driver CPC
However, SNAP’s survey suggested many are unaware how the money is spent, with 17% calling for it to be used on road improvements. A further 8% said they wanted funds to be used on drivers’ healthcare.
Chave signs up for Yodel digital journey Yodel has appointed Simon Chave (pictured) as its new chief information officer, with a brief to continue the business’ digital transformation. Chave has been a key member of Yodel’s tech leadership team since joining the business in 2020
and has led a series of digital transformation initiatives to improve Yodel’s e-commerce, customer service and operational capabilities across the business. He will succeed Helen Marshall, who is retiring after four years as CIO and almost 10 years at Yodel. MotorTransport 3
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Masters enters New Year with £1m fleet and systems upgrade
Firms flee London over ULEZ Businesses are fleeing London and relocating across the UK in order to escape the capital’s ultralow emission zone (ULEZ), according to ELB Partners. The family-run Croydon haulier said four of its customers had moved out of London since the ULEZ was expanded at the end of August last year, with the everrising costs of operating in the city cited as the reason for leaving. “We’re seeing businesses leaving London and relocating all over the country due to the impact of the ULEZ on their bottom line,” said MD Peter Eason said. “It is really damaging for our
industry, too. Drivers on lower incomes who use older but perfectly roadworthy vehicles are being punished.” Meanwhile, a group of 10 Dutch hauliers has begun legal action against TfL, claiming they have been unlawfully issued with ULEZ fines. If successful, the action could open the door to similar claims against TfL from hauliers across Europe. The 10 hauliers are being represented by Dutch firm Transport in Nood BV. It says around €7.5m (£6.5m) in ULEZ and LEZ fines could have been wrongly issued and have bankrupted some firms.
Warehousing and distribution specialist Masters has started the New Year with a £1m investment into the business as it gears up for growth. The money will fund a series of system upgrades as well as five new rigid trucks and 10 new fork lifts and comes just over 12 months since the Ely-based business and Palletline member was acquired by Knowles Logistics. As part of Knowles’ long-standing relationship with Volvo, which spans over 25 years, Masters has purchased three 26-tonne Volvo FE 320 Rigid trucks and two 18-tonne Volvo FE 320 Rigid trucks. All vehicles will be accompanied by Lawrence David bodies, which feature aerodynamic roofs for improved fuel efficiency and will operate on Palletline collections and deliveries in the Cambridgeshire area. The three new system upgrades will maximise warehouse capacity within the current footprint, help with planning collections and deliveries for customers whilst using the fleet to its maximum capacity, and streamline its financial operations.
From column lifts to brake testers, tyre changers to vehicle pits, air conditioning, oil management and almost everything in between, for workshop equipment, it really is Totalkare. Call us for a quote today.
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15.1.24
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Howard Tenens in expansion drive Howard Tenens has acquired a warehouse at Huntworth Business Park, near Bridgewater, as it continues to expand its business. The company said the property, which is close to Junction 24 of the M5, will be extensively refurbished to provide a pivotal hub for Howard Tenens Logistics and future tenants that are seeking a supply chain solution to service the South West corridor. The facility covers over 120,000sq ft and comes with 14 dock levellers and extensive yard space. Howard Tenens currently operates over 4.4m sq ft of warehousing across the UK.
Logistics firm anticipates continued growth as performance improves
Abbey profits up ahead of sale to Sitra Invest NV By Carol Millett
Abbey Logistics Group almost doubled its pre-tax profit in the financial year before its recent sale to Belgian logistics giant Sitra Invest NV, according to its latest annual results. Reporting its performance for the year to 1 July 2023, the company revealed a 10% rise in turnover to £74.3m (2022: £67.5m), while pretax profit leapt to £3m, up from £1.7m in the previous year. In its strategic report, Abbey Logistics attributed its increased turnover to a combination of factors. These included a more stable trading environment compared to the previous year, which had been dogged by driver availability issues and the impact of the war in Ukraine. It added that other positive forces included a
Photo: SMc Photography
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close working relationship with a “stable customer base” and winning new work in key strategic areas. Abbey also reported strong operating cash flow over the year, with over £4m invested in capital expenditure.
Turning to its purchase by Sitra in November last year, the report said the group is “well placed to take advantage of considerable opportunities for growth in the years to come as part of the wider Sitra Group”.
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Business barometer
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Economic forecasts for 2024 point to muted demand accompanied by a rapid drop in inflation
Flat out? No, it’s just flat
Inflation
The Bank of England’s Monetary Policy Committee (MPC) is tasked with managing inflation, so its latest forecast (‘Monetary policy report’, November) should be the most authoritative. As the accompanying chart shows, the MPC expects Consumer Price Index (CPI) inflation to drop steadily. It should be down to 3.1% in Q4 this year, and reach the 2.0% target in late 2025. Independent analysts, cited last month in the Treasury’s ‘Forecasts for the UK economy: a comparison of independent forecasts’, believe inflation will subside rather more quickly. Their median forecast is for CPI already to be down to 2.4% in Q4 this year. These forecasts were made before November’s inflation figure was published on 20 December, 8 MotorTransport
BRENT CRUDE OIL PRICE 120 Yearly average $/barrel
revealing an unexpectedly large drop in CPI, from 4.6% in October to 3.9% in November. We will soon know if this was a one-off aberration or evidence of a steep downward trend: December’s inflation figure is due on 17 January. Inflation in the price of goods was already at the 2% target level in November, but the overall CPI figure was pulled up by 6.3% inflation in the services sector. The MPC believes that services inflation is due to spike again at around 7.5% this month, before settling into a steady downward trajectory as pay awards diminish.
100 80 60 40 20 0
2018
2019
2020
2021
2022
2023
2024 (forecast)
Sterling’s value
The pound was rather stronger last year than forecasters had expected. The Bank of England’s Exchange Rate Index (ERI) evaluates the pound against a basket of currencies, weighted to reflect the volume of UK trade with other countries. The index, which is based on 100 (its January 2005 value), averaged 79.7 in 2022 and was widely expected to fall to between 77 and 78 in 2023. But in fact, the ERI rose last year, averaging 80.4. The Bank of England reckons it will be 80 this year. The median of the latest independent forecasts, published last month in the Treasury report cited previously, is a 2024 average ERI of 80.9. But this anticipated stability could be undermined by sooner-thanexpected cuts in the interest base rate, triggered by the recent sharp drop in inflation. An early reduction in the base rate from the current 5.25% is likely to depress the pound’s value. The next base rate announcement is on 1 February.
Manufacturing confidence
UK manufacturers ended the year at a low ebb. The S&P Global / CIPS UK manufacturing purchasing managers’ index (PMI) dropped from 47.2 in November to 46.2 in December. This widely quoted survey tracks monthly changes in confidence amongst 650 manufacturers, using a weighted index to reflect key metrics like new orders, output, employment and supplier delivery times. PMI scores above 50 denote an improvement on the previous month; scores below 50
CPI INFLATION FORECAST 5.0% 4.5% 4.0% Annual inflation
Fears of oversupply led to a worthwhile drop in the Brent crude oil price in the last couple of months of 2023, accompanied by a welcome reduction in the diesel price. December’s average oil price was $77/barrel, helping to bring 2023’s average down to $82.60, about 18% lower than in 2022. A typical annual average price for a full load of bulk diesel in 2023 was between 116 pence per litre (ppl) and 120ppl. Major price changes are not expected in 2024, with oil tipped to average $83/barrel again this year. Our basis is the latest forecasts from a range of market analysts. Output from several important oil-producing countries including Saudi Arabia, Russia and Iraq is set to remain capped until the end of March, so further steep declines in the price seem less likely. And despite optimistic rhetoric at COP28 in Dubai last month, global oil consumption is still tipped to rise this year, albeit at a slowing rate. Perhaps the biggest threat to the diesel price – aside from the usual geopolitical tensions – is the fact that fuel duty is scheduled to rise by 5ppl on 24 March. However, Chancellor of the Exchequer Jeremy Hunt is likely to extend the current reduced duty rate as part of a pre-election giveaway budget on 6 March.
3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0%
Q1 ‘24 Q2 ‘24 Q3 ‘24 Q4 ‘24 Q1 ‘25 Q2 ‘25 Q3 ‘25 Q4 ‘25
STERLING’S VALUE 84 82 Exchange Rate Index
Oil and fuel
Jan 2005 ERI=100
80 78 76 74 72 70
2016 2017 2018 2019 2020 2021 2022 2023 2024
indicate deterioration. December’s result completes a year of sub-50 scores for UK manufacturing. The last time PMI topped 50 was in July 2022. “UK manufacturing output contracted at an increased rate at the end of 2023,” said S&P Global market intelligence director Rob
Dobson. “The demand backdrop also remains frosty, with new orders sinking further as conditions remain tough in both the domestic market and in key export markets, notably the EU.” But there was some good news: raw material prices and delivery lead times are falling. 15.1.24
Viewpoint
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Cross-party support welcome T
o the House of Commons last Wednesday evening for the longdelayed RHA Parliamentary Reception, where the great and the good of road transport mingled with ministers and MPs of all parties in a show of support for the industry. Steve Hobson While transport secretary Mark Harper Editor MP was sadly a no-show, roads minister Motor Guy Opperman MP stood in and was Transport fulsome in his praise for the essential work the industry does to support the UK economy and promised he would be a “champion” for the industry in Westminster. Not too many years ago such words might have seemed like empty rhetoric but more recently the government has been putting its money where its mouth is with more tangible support, including chipping in part of a £100m fund to improve driver roadside facilities, £200m for a zero-
emission truck demonstrator programme and £645,000 for recruitment campaign Generation Logistics. OK, it’s small beer compared with the £2bn annual subsidies for farmers, but it is something at a time when road transport is under the cosh. RHA chairman Moreton Cullimore pointed out that Christmas 2023 was the worst since 2008, with volumes down 10% and operating costs up 9%. The cross-party support shown at the reception was especially welcome bearing in mind this year will see a general election, as was the broad support from industry, with senior representatives from Logistics UK, SMMT, UKWA and CILT rubbing shoulders with their RHA colleagues. Collaboration is one of the key themes the RHA is pushing in its 2024 election manifesto and if last week’s event was anything to go by, it is happening.
Time to rachet up technician training A
Caroline Moody MD, Moody Logistics and Storage
second and more serious long-term recruitment crisis is threatening to cause further disruption within the logistics sector. As a family-run firm, we have already overcome the challenges around the nationwide shortage of HGV drivers, having set up our own fast-track driver apprenticeship scheme. Now we face greater difficulties in recruiting qualified vehicle technicians. Our sister firm Heathline Commercials, which repairs and services commercial vehicles, has all but given up advertising for qualified people, instead seeking to take on those who are willing to be trained. The shortage is caused by a significant gap between the numbers of fitters retiring and those who are newly qualified. A survey carried out by Logistics UK in November 2022 involving 207 of its members reported 54% faced a severe problem hiring vehicle technicians. This is a situation that can only have worsened since then. Despite being a well-paid career there is a declining interest from school leavers in the technical trades. However, the main problem is that it takes four years to qualify as a vehicle technician from courses that are essentially designed around 16-year-old entrants. Since setting up our bespoke driver apprenticeship programme, we have had no problem attracting HGV drivers, and it highlights the extent of the crisis surrounding mechanics that one of our Class 1 drivers, Dean Dodd, has now joined Heathline Commercials as a trainee technician. He took the decision because he wanted to spend less time on the road, and we are delighted we got to retain his skills within the business. Heathline was specifically looking for a
10 MotorTransport
trainee with a Class 1 licence and Dean’s experience is valuable in that respect, given he already has practical knowledge of trucks and how they work. Unfortunately, current vehicle technician courses adopt a one-size-fits-all approach and don’t distinguish between those joining straight from school or those switching careers later in life. One solution would be to create more flexible and tailored training programmes for those who already possess higher levels of mechanical knowledge – allowing them to qualify in a shorter time. If the shortage of vehicle technicians is not addressed, the consequences are severe, given that the logistics sector forms the backbone of the nation’s economy. Disruption to the intricate transportation web will result in longer downtime, increased maintenance costs, and potentially compromised safety standards. Rectifying the shortage of qualified vehicle technicians requires a concerted effort by stakeholders and more government investment in retraining programmes for older workers. There must also be a re-evaluation of the perception surrounding vocational and technical education supported by targeted awareness campaigns, school outreach programmes and industry partnerships. If tailored training can be created for people like Dean, it will bridge the gap between theoretical knowledge and real-world application and streamline the qualification process. Doing so will bring more people into the profession.
The newspaper for transport operators
To contact us, email: name.surname@roadtransport.com Editor Steve Hobson Head of content Tim Wallace Events and projects editor Hayley Tayler Group production manager Isabel Burton Senior display sales executive Barnaby Goodman-Smith 020 89122128 Event sales Tim George 0755 7677758 Classified and recruitment advertising 020 89122120 rtmclassified@roadtransport.com Commercial sales director Emma Tyrer 07872 468432 Divisional director Vic Bunby MT Awards Katy Moyle Editorial office Road Transport Media, First Floor, Chancery House, St Nicholas Way, Sutton, Surrey SM1 1JB 020 8912 2170 Free copies MT is available free to specified licensed operators under the publisher’s terms of control. For details, email mtsccqueries@roadtransport.com, or call 01772 426705 Subscriptions RoadTransport@abacusemedia.zendesk.com 020 8955 7034 Motor Transport Subscriptions, Abacus, 107-111 Fleet Street, London EC4A 2AB Rates UK £156/year. Cheques made payable to Motor Transport. Apply online at mtssubs.com Registered at the Post Office as a newspaper Published by DVV Media International Ltd © 2024 DVV Media International Ltd ISSN 0027-206 X
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Recruitment
Photo: Nuad Contributor / Shutterstock
Boosting diversity in the talent pool
With just 4% of HGV drivers in the UK coming from ethnic minorities, the industry needs to work at attracting recruits from a variety of backgrounds. Malory Davies investigates
O
perators are struggling to recruit enough drivers, but all too often they focus on the traditional pool of white, male workers. It’s time to be more proactive in harnessing talent from ethnic minorities. The figures are stark: in an industry crying out for staff, ethnic minorities account for just 4% of HGV drivers. Given that they account for about 18% of the population, it is clear that the industry is failing to attract people from this key demographic. Compare that to the US, where 36% of truck drivers are from ethnic minorities, according to careers website Zippia. “Transport, traditionally, is very white and very male,” says Leigh Anderson, MD of Bis Henderson Recruitment. It’s a comment echoed by Adrian Jones, national officer at Unite the Union, who adds: “Unless companies do something different, that will continue”. There are moves to change this. The Driver Academy Group (DAG), a consortium made up of HGV training specialist HGVC, Logistics UK and Manpower, says that more than 25% of the trainees in its latest Skills Bootcamp intake are black, Asian or from other ethnically diverse groups.
12 MotorTransport
The HGV driving Skills Bootcamps were created with £34m of Department for Education funding, with a target of bringing around 11,000 drivers into the industry. As well as funding the training and testing of new drivers, the programme also aims to attract some of the 295,000 existing licence holders back into the industry. The 16-week courses are run by 17 approved training providers across the UK. James Clifford, CEO of HGVC, says: “It’s no secret that the HGV industry has historically struggled to recruit from ethnically diverse groups. However, the Skills Bootcamps demonstrate that those from under-represented groups do want to become HGV drivers. The job is appealing, and funding and a clear training structure
OCCUPATIONS RANKED BY DIVERSITY Rank Occupation 1 22 29 80 90 125 145
Taxi and cab drivers and chauffeurs Bus and coach drivers Fork-lift truck drivers Postal workers, mail sorters, messengers and couriers Transport and distribution clerks and assistants Managers and directors in transport and distribution Large goods vehicle drivers All jobs
All minorities 53.8% 27.2% 27.7% 19.2% 18.6% 15.3% 14.2% 19.9%
Non-white share 48.6% 18.7% 9.5% 13.3% 7.6% 8.1% 3.2% 12.1%
Diversity (index of pluralism) 0.72 0.46 0.44 0.34 0.33 0.28 0.25 0.35
Source: ‘The two sides of diversity’, a report by Policy Exchange 2017. The report ranks 202 occupations in terms of their diversity.
15.1.24
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WHAT ABOUT THE DIRECTORS? A report by the CBI found that in January 2020, only 178 of the 2,625 FTSE 350 directors were from an ethnic minority background. Across the FTSE 350 companies that supplied sufficient data to the Parker Review, 59% did not meet the target of having at least one person from an ethnic minority background on their board. The report also found that 52% of employees from ethnic minority backgrounds believe they will have to leave their current organisation to progress in their career, compared to just 38% of white employees. There have been moves to increase diversity at board level. In 2020, Wincanton became the first logistics company to sign up to the ‘Change the race ratio’ programme to increase racial and ethnic minority representation at executive level. The initiative was originally launched by the CBI but is now independent. Signatories must agree to four key commitments to change: ■ Set and publish targets for racial and ethnic minority representation on boards; ■ Set and publish targets for racial and ethnic minority representation at an executive level and minus-one pipeline; ■ Publish a race action plan and ethnicity pay gap report within two years of joining; ■ Create an inclusive culture that allows talent to thrive. Some 111 companies have signed up to the scheme, including Aviva, BAe Systems, BP, Diageo, GSK, Microsoft and Unilever.
evidently makes a difference.” But the fact that road haulage has been slow to recruit outside its traditional areas means it faces competition from other, more proactive industries. For example, last year the Construction Industry Training Board launched ‘Pathways into construction’, a £10m scheme designed to attract women and people from ethnic minorities into the industry. It calculated that 16% of workers in construction are female and 7% from ethnic minorities. Stephen Cole, CITB head of careers strategy, says: “With thousands of jobs being created in the coming years, Pathways into construction will demonstrate that we need to stop fishing in only half the pond and diversify the talent pool to meet future skills needs.”
Creating an inclusive environment
So how does the transport industry get out of the rut it finds itself in? Jones points out that the issue of driver shortages has been around for decades. “There is a real opportunity to grasp the nettle and do things differently,” he argues. “The problem has got to solved by the industry.” For Anderson, a key element is creating a welcoming and inclusive environment for everyone. He believes transport operators are not seen as inviting to people from ethnic minorities. “It’s all to do with how welcoming the company is,” he says. “No-one wants to go into an environment where they are different.” He points out that someone looking for a place to work is likely to prefer somewhere where they are not on their own. Anderson reckons that too often transport companies don’t know how to reach out to workers from ethnic minorities: “How do you get to them and how do you target those communities?” He argues that transport companies are looking for good people regardless of ethnicity. “I have not seen any inherent racism in the transport industry,” he claims. But he does highlight the importance of changing the working environment, which can be improved by offering things such as family-friendly working hours. “Loneliness can be an issue for truck drivers,” he says. “We have to think about how to deal with this.” Jones believes larger companies can do more to solve shortages by encouraging employees from other areas of the business to become drivers. “One of the things we are saying to big employers is ‘look at the existing workforce outside of transport’,” he says. “Generally, the rest of the workforce within organisations is more diverse. 15.1.24
REMOVING BARRIERS: HGVC CEO James Clifford believes Skills Bootcamps have been successful in attracting people from ethnic monorities to HGV driving careers by reducing the cost of training
“The fact is that the pool that companies are recruiting from is diminishing fast,” he adds. Employers need to look at how the industry can engage with and offer job prospects to communities that are under-represented. Unite is willing to facilitate that engagement, says Jones. He also argues that increasingly people are not prepared to work in the way that operators have traditionally used drivers. A key reason why public transport attracts more people from ethnic minority backgrounds is the fact that bus services have fixed timetables and working hours, while all too often this is not the case for road freight. The DAG Skills Bootcamps are a notable success in attracting people from ethnic minorities to the industry. “They have taken away a major barrier to entry – cost – removing the financial risk and making it easier for individuals from any background to get their licence and find a job,” says Clifford. “The employer-funded route, with the DfE offering 70% funding for employers to upskill staff, has also had a positive impact.”
Equal opportunities
There’s been a move away from ‘closed-shop’ nepotism that was quite common, with ‘refer a friend’ schemes and the like, to a focus that is much more on skills, attributes and equal opportunity. “There’s still work to be done and we will now be working hard to get these trainees onto the right training scheme and into an interview with a local employer,” says Clifford. “Advocacy is important. Diversity is something we’ve talked about since the launch of our Skills Bootcamps programme. “We’ve been ensuring there’s an equal message for everyone, irrespective of who’s applying. It’s reflected in our marketing and advertising and it’s part of our strategic vision. It’s also on the broader agenda within the sector. “We know that HR departments care much more about diversity and inclusivity now.” Clifford goes on to say that, while government has a role to play, “the industry also needs to look at how to retain drivers”. “While some of this is down to pay and conditions, we know drivers want to be in a career where development is possible,” he says. “We believe industry and the government can do more to better structure and streamline HGV driving careers, making it clearer about how to get into the industry and how drivers can develop.” Clearly there is an opportunity for the road transport industry to broaden its recruitment base, but if companies fail to act decisively there is a real risk that they will miss out. “There is a cliff edge coming,” warns Jones, “where there won’t be enough bums on seats.” ■
DON’T CALL ME BAME BAME (black, Asian and minority ethnic) is still a common acronym used to describe people from ethnic minorities. However, the term has been dropped by the government after it was criticised for grouping together diverse ethnicities and the implication that it reflects a singular or homogeneous ethnic identity. The fact that the term ‘BAME’ has come and gone so quickly reflects the rapidly changing political landscape. Words and expressions that were acceptable 20 or even five years ago are now often considered inappropriate. Staying up to date with these changes can be a challenge. According to the latest government advice these expressions are acceptable: ethnic minority, black people, black ethnic group and mixed ethnic group. These expressions are not considered acceptable: BAME, BME, non-white, blacks, mixed race and mixed people. MotorTransport 13
Totalkare profile
Your ultimate space saver
FIT FOR PURPOSE: Mobile lifts can be designed to meet the specific needs of your workspace
Whatever your workshop size and set-up, product specialist Totalkare has all the tools to ensure you use your space to its maximum potential. Chris Tindall reports
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obody has ever complained of having too much space; in fact, it is usually one of the first limiting factors. However, with the right mobile equipment it is possible to maximise the space you do have and ensure every square foot is utilised. Steve Braund, marketing manager at equipment expert Totalkare, says a commercial vehicle lift is probably the biggest workshop investment you are going to make – both in terms of money and space – and so when that space is not being used it’s going to waste. Mobile Column Lifts are very flexible and most premises offer multiple places to create a lifting station area. If it’s a newer, smaller workshop and there’s likely to be a future need to alter the layout, then the extra flexibility afforded by a mobile lift gives you options. Totalkare’s Mobile Column Lifts work almost anywhere in a workshop in configurations of up to eight, with lifting capacities bigger than most fixed installations. “However, if you aren’t using them, they can simply be wheeled into storage to clear a bay for other services, instantly boosting the capacity of your workshop,” Braund explains. If you’ve decided to dedicate an area as a flexible workspace, then you’ll need mobile testing equipment and diagnostics that you can easily bring to the vehicle – not the other way around.
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Totalkare’s cable-free petrol and diesel Emission Analyser has been designed to meet the latest DVSA requirements for the car, bus and truck markets. It also incorporates a Wi-Fi-enabled PC able to run its own programmes, and offers remote operation for up to 100m from the unit workstation. Or perhaps your workplace requires the setting up of a temporary brake testing station, such as Totalkare’s Mobile Brake Tester. This DVSA-approved tester provides a high level of customisation to meet specific workshop requirements, with its standard model capable of testing up to 16,000kg axle load and able to be used on asphalt, concrete and even on uneven gravel, sand or dirt. For heavier axle loads, an upgraded version is available that can test up to 20,000kg. For smaller workshop operators, it can often feel like you’ve already maxed out on all the available space at your disposal. But as Braund points out: “We know there’s one untapped space that often gets overlooked – and that’s the outdoor areas of your premises. If you have a courtyard, a car park, or a loading bay, you might not be using it to its full potential.” Totalkare’s Mobile Brake Testers are designed to work on uneven ground and because they’re mobile they can be set up in a suitable outdoor location at a moment’s notice, freeing up space indoors to carry out other simultaneous services. “Similarly, the galvanised version of our Mobile Column Lift is perfect for outdoor use too,” adds Braund. “Designed for use in wet conditions, the G8AC Washbay Column Lift can also be safely used in an outdoor environment, even when it’s raining.” ■ 15.1.24
motortransport.co.uk
CASE STUDY: K2 RECOVERY TAKES TOTALKARE LIFTING & TESTING EQUIPMENT K2 Recovery, a prominent Northamptonshire-based provider of vehicle recovery and workshop services, has recently enhanced its Kettering workshop with state-of-the-art equipment from Totalkare. The workshop upgrades include an electro-hydraulic two-post lift, a heavy-duty four-post lift, a diesel smoke meter and a headlamp tester. The 5,500kg capacity two-post lift features a base-free design, making it an ideal solution for fixed-post lifting needs where the flexibility of a mobile vehicle lift is unnecessary. Specifically designed for vans, minibuses, pick-up trucks and small heavy vehicles, it complements the heavy-duty four-post lift, which boasts a 25,000kg capacity and is suitable for vehicles up to 33,000kg. The four-post lift, available in surface or recessed mounted configurations with drive-on/drive-through options, is a versatile addition to K2 Recovery’s workshop. In addition to the lifting solutions, K2 Recovery has incorporated a diesel smoke meter and a headlamp tester from Totalkare. The diesel smoke meter serves as a diagnostic tool for the maintenance of diesel engines, ensuring improved fuel economy and environmental protection. With the increasing emphasis on clean air zones in the UK, routine testing of diesel engine emissions aligns vehicles leaving the workshop with the latest requirements. The Totalkare headlamp tester plays a crucial role in checking both the orientation and intensity of vehicle headlamps, ensuring compliance with DVSA standards. Given that headlamp aim is a common failure item during annual tests for HGVs and public
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service vehicles, the tester contributes significantly to the workshop’s commitment to maintaining vehicle safety. Dave Bown, managing director at K2 Recovery, expressed the need for equipment upgrades due to an expansion of the business, stating that the new additions save time and money while allowing the continuation of high-quality services. Adam Bowser, sales director at Totalkare, highlighted the quick lifting times of the equipment, emphasising their role in enhancing productivity and meeting compliance standards consistently. The upgrades position K2 Recovery to efficiently handle increased vehicle throughput and maintain customer satisfaction.
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MT Awards 2023 winner profile Home Delivery Operator of the Year
Streets ahead In hard times for the parcel sector, DPD has set its sights on new domestic and international markets while continuing its drive to be the UK’s greenest delivery company
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GOING GREEN: Electric vans are part of DPD’s strategy to be net zero by 2040
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hen even a company as buoyant as DPD describes current market conditions as “tough” you know these are challenging times for courier firms. Winner of our 2023 Home Delivery Operator of the Year award, the group saw revenue fall by 5% last year while pre-tax profit was also slightly down, to £300m from £302m the year before. But put those results against Evri’s, where profit slumped by over 50%, and you get a better sense of perspective. Low customer confidence, high inflation, the higher cost of living, the war in Ukraine and a post-pandemic fall in online demand have all taken their toll. But as the saying goes, it’s not so much the problems you face as how you react that’s important. In DPD’s case that has simply meant widening its focus while increasing market share. “Yes, these are challenging times,” Tim Jones, director of marketing, communications and sustainability admits. “Inflation and higher interest rates have had an impact on our market. But what that obliges companies to do is to look for other opportunities, perhaps in sectors we haven’t been in before. Healthcare is one. It will always be a crucial market with lots of specialist delivery needs.” DPD already has prestigious healthcare clients, Jones adds, and is confident it can find more. “High inflation
and high energy and fuel costs are making things tough, but business demands we look for new opportunities,” he says. “There’s still a significant market out there and it will always be competitive. We’d have been looking at new sectors anyway. We also want to explore how we expand into new international markets.” Jones insists DPD is still “years ahead” of where it planned to be at this stage and that small variations in revenue are not a significant factor in its wider strategic direction. The company’s 20,000-strong team delivers 410 million parcels a year for 7,500 customers, including leading brands like River Island, IKEA, Marks and Spencer, Selfridges and Next. Turnover remained stable at £2bn last year – up nearly 50% since 2019 – with profit almost 100% up on pre-pandemic levels. It has also achieved a “world class” NPS rating of 76.
Game changers
Jones rejects claims that, in such a highly congested market, it has become more difficult to differentiate DPD’s offer from those of its rivals. The point brings him round nicely to why he thinks the company again won out in the Home Delivery category. “Customers are very aware of the different carriers and they select them based on their own criteria,” he 15.1.24
Partnered with
says. “There are a lot of players and it’s up to us to raise our game. The fact that we’re winning awards, and lots of them, is testament to that. “Those customers want the USPs that we offer. It’s all about right-first-time delivery, that’s what they want and it’s why we’re successful in this awards category. It’s also the choice in the notifications that they have, it’s the convenience of the one-hour time slot, it’s the in-flight options and it’s the quality of the service. We always say service is number one and that’s what we sell.” Setting itself apart from other carriers is “an obsession”, Jones says. Perhaps the strongest indicator of customer loyalty is that a large percentage of the company’s top customers have had deals for five years or more. Last year DPD also notched up new business wins from the likes of Hornby Hobbies, Arena Flowers, Moonpig, North Face and Claire’s Accessories. In addition, it signed three- to five-year contract renewals with numerous clients, including John Lewis, ASOS and Currys. The company also looks to stay close to its major retail customers through its Executive Sponsorship Programme. Each of its 10 senior leadership team members is aligned with 10 different customers from its Top 100 and ensures their voice is represented in the boardroom by visiting each one at least twice a year. The main theme to emerge from the most recent visits was requests from CEOs and supply chain directors for DPD to “put some cherries on the cake” and to personalise the experience with ‘Tiny Noticeable Things’ (TNTs). To this end, last year saw DPD introduce three new customer-facing initiatives to improve the end recipient experience – ‘Pinnacle’, which extends the hub sortation window; ‘Pinpoint my address’, for more right-first-time deliveries; and ‘More Time Needed’, for home shoppers with accessibility issues. Each of these aims to give DPD that important point of difference from competitors.
The emission-free robots are currently navigating pedestrian routes seven days a week to deliver in two areas of Milton Keynes. In the first six months of operations, they successfully delivered 1,500 parcels. One initiative Jones is particularly keen to highlight is EcoLaunchpad, which began in June. The plan has been to work with innovative companies with fresh ideas on cutting carbon emissions in transport, delivery and buildings. DPD has partnered with innovation specialist L Marks on the project and the two companies have called for applications from candidates interested in tackling key challenges. These include the further decarbonisation of DPD’s fleet of HGVs, through alternative fuel and electric vehicle (EV) solutions, and the reduction of its collection and delivery emissions via EV charging stations and alternative EV solutions. DPD also wants to cut carbon emissions from its 100 buildings, using innovations that can be retrofitted into its current depots and installed in any future sites. The group is looking to design and build depots in the most sustainable way possible. “EcoLaunchpad is great, it’s something different,” Jones concludes. “It’s been a way to find new and innovative companies who have got the ideas and need to partner with larger companies to find real solutions.” However, he won’t be drawn into speculating what the long-term answer is for DPD’s long-distance fleet until more research is conducted. “It won’t always be HVO but it could be part of the solution,” he says. “We need to work with companies in our incubator labs to find those solutions. But if you had said to me six years ago that we would have 4,000-odd electric delivery vans operating in 2023 I’d have said that’s crazy. We’ve already come a long, long way.” ■
Green agenda
It’s well documented by now that DPD is also on a quest to be the UK’s greenest delivery company. “Nearly everything we do is down to customer demand and they want us to be greener,” Jones explains. “The whole sustainability piece is an investment. We want to be net zero by 2040, which will require investment and change in the way we do things.” The company has looked at many solutions for decarbonising its fleet of 1,000 HGVs and believes that the best one for now is hydrotreated vegetable oil (HVO). “It’s been a big win for us,” Jones says. “It can go in the diesel tank with no conversion and it’s 90% less pollutive than diesel.” However, as he readily admits, HVO is not the longterm solution and is significantly more expensive than diesel. “In 10 years’ time there will be some radically different solutions to the ones currently available, but that’s about as specific as I can be,” he smiles. “Distance is the problem at the moment and that’s why HVO has worked for us, because we can go to Scotland and Cornwall without refuelling. “There isn’t an economically viable tractor unit yet that can pull our trailers but the world changes quickly. We’re looking at hydrogen and that’s why we’re also keen on the robots that we featured in this entry. Half our depots could operate robot fleets. Its scaleable and very exciting. It’s all about keeping innovating.” 15.1.24
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MT Awards 2023 winner profile Operational Excellence Award
Tanks a million! In the highly specialised world of tanker haulage, Abbey Logistics stands out for its commitment to meeting the complex requirements of customers INCREDIBLE BULK: The Abbey Logistics team, led by head of liquid operations Peter Cunningham (holding trophy, right), collect their award from Palletforce chief operating officer Mark Tapper (far right)
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bbey Logistics Group is a leading logistics service provider and one of the UK’s most recognised and respected road tanker transport brands. Operating throughout the UK and Europe, the company provides road tanker transport haulage and logistics services to bulk liquid and powder customers across a wide variety of sectors. Abbey Logistics has an excellent and growing reputation in the plastics and polymers, minerals, animal feed, construction and warehousing sectors. Abbey’s operations department is fundamental to the success of the business and its customers, consistently going above and beyond the call of duty to ensure that the products and services are delivered on time and to the required quality to satisfy its customers. Unlike packed or palletised products, bulk products must be stored post production and prior to use in tanks or silos. There are strict rules, accreditations and regulations covering product integrity, segregation and compliance, which also apply to bulk road tankers. These factors reduce storage options for customers and increase planning constraints for bulk distribution operators. Life at the limit The combined effect of these constraints creates a challenging distribution operation for customers, which requires a high degree of flexibility and outstanding
WHY ABBEY? Specialist tank specifications, previous load restrictions, tank washing protocols and drivers’ skill create complexity but do not reduce service levels. Drivers are highly skilled and trained to use each specific tank type and handle each product type. Just in time deliveries are normal and critical to production – 93,000 loads are delivered annually, managed compliantly with the requisite SCOPA, TASCC, FORS, BRC and kosher requirements. The 289 products delivered over the last six months all require specific tanks, discharge equipment and driver skills. There are very few set piece movements within the operations. 400 vehicles, 700 tanks and 600 drivers are planned daily. Abbey operates the service required by its customers 24/7, 364 days per year. Agency labour cannot be used to load or deliver product, unlike palletised goods. Bulk storage capacity is frequently restricted. This increases demand volatility. Abbey has managed to adapt and successfully navigate the market challenges, provide flexible, reliable services and peak volume capacity, identify cost reduction and cost control, and most importantly, become a resilient supply chain partner that manages adverse events and lets customers focus on production and sales without constraint while focusing on efficient and continuous improvement reporting. 18 MotorTransport
service levels. Failure stops production of the constituent ingredients and products, or the finished product. There are several supply challenges. These include the availability of raw materials, limited bulk finished goods storage, non-conforming product, production issues, factory shutdowns, short shelf life products and restricted loading capacity. Similarly, there are constraints on bulk tanker distribution, including the need for tanks to be product specific. In addition, the previous product must be compatible, tanks need to be washed internally, drivers must be competent where tank type and product is concerned and product-specific discharge equipment is required. Add demand challenges to these – including the volatility of vendor-managed inventory, short order lead time, unpredictable demand, just-in-time deliveries, restricted delivery windows, high volume demand, low storage capacity and site access restrictions – and it’s clear that Abbey’s operations department needs to keep a number of plates spinning simultaneously. Against that background, the operations department can claim several delivery achievements. The team efficiently controls a fleet of 700 tanks, consisting of 14 different types and designs. Each tank is divided into up to eight customer, product or accreditation based sub-categories, creating hundreds of actual tank specifications. Planners balance customer supply and demand with the correct tank assets, while reducing waste mileage to a minimum. Planning skills and knowledge are key to reducing the frequency of internal tank washing. This cuts down on waste, waste mileage, downtime and cost. Further efficiencies are achieved by cross-training drivers to safely load and unload different tank types with various products, reducing planning constraints and boosting flexibility and capacity. 15.1.24
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The operations team manages a fleet of 400 tractor units fitted with specialist product discharge equipment. The planning teams optimise their use across the business divisions, allocating units fitted with the correct kit. Each combination consists of a tractor unit, a tank, product discharge equipment, telematics, an in-cab driver interface and tipping equipment. Many are also fitted with auxiliary equipment such as product heaters. The fleet team maintains every component of each combination to exceed customer and compliance standards. Any component failure removes the combination from service, potentially with the product on board.
Driver dedication
Skilled drivers who are able to load and unload tanks are key to a successful operation. Orders can change continuously, even when a vehicle is loaded and on its way to a customer, so good relationships between planners and drivers are essential. Abbey Logistics manages these changes 24/7, 364 days a year, and continuously achieves high service standards, regardless of demand, volatility or changes. It carries approximately 65% of bulk food delivered in the UK, including fats, oils, glucose, sugar, flour, salt, chocolate, water and other beverages. Our judges said: “This was a slick and relevant presentation. Abbey has an excellent compliance record, delivered 98% on time and in full, and understands and excels in a complex sector.” The business also collected the Team of the Year award, prompting CEO David Patten to say: “The team here are exceptionally proud to have received these two awards in recognition of our hard work and dedicated staff to support our industry and valued customers. “It is always a pleasure to watch how our people, business, customer relationships and processes all continue to grow and develop in our sector. As we look to the future, Abbey will continue our journey to be the best at what we do.” ■
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CASE STUDY: TARMAC CEMENT AND LIME The operations challenge from Tarmac Cement and Lime was to cost-effectively meet customer demand and service level, regardless of supply location, weather and volume variations of up to 760%. The operation involves moving 59,000 tonnes per year, consisting of four product types and involving customer and production feed deliveries from six loading locations using one planning office covering five operating centres. The Abbey team delivers includes customer and factory demand planning, stock transfers, live planning and order changes, daily reporting and KPIs, efficiency and payload lead, and third-party contractor management. Abbey provides a reliable and flexible route to market. On-time delivery is running above 97.5% on 30-minute delivery windows. There are no sales or delivery constraints. The customer can accept orders daily two hours later than competitors, leading to reliable delivery the next day and creating a commercial advantage. Abbey offers an efficient and price competitive distribution solution. The budget distribution cost per tonne is consistently achieved. A full KPI report pack is provided along with supply chain visibility. Members of the planning team are located in the customer’s office, resulting in a quick response time. Industryleading payload is achieved, increasing product sales. The Abbey/Tarmac partnership has notched up several key achievements, against a background of a range of volatility factors such as adverse weather conditions, high volume concrete pours, rail freight failure or disruption, as well as demand and distance to delivery location. Those achievements include the team managing a return to full capacity in one week following a complete outage. The planners consistently achieve high volume and time sensitive deliveries on demand, which are critical to the success of large construction projects including ports, roads, runways, wind farms and other high demand construction projects. The team immediately transferred rail deliveries to road without service disruption, following rail outages including derailments, landslides and industrial action. The team consistently achieves financial and service KPIs regardless of volume, location, distance, adverse weather, product availability and numerous other constraints and challenges. The team is constantly involved in replanning the fleet to achieve the optimum service and financial performance. Last but not least, the team successfully finds and manages alternative work for up to 88% of the core fleet when orders are low.
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