Geodis backs formerly ailing United Carriers

GEODIS HAS PLEDGED ITS support for the formerly ailing United Carriers having opened a £1m hub extension at its Smethwick, West Midlands hub.

‘When we took it over it was clear that we neded to increase service levels, build traffic and reduce costs,’ said Francois Branche, general manager of Geodis Groupage and Distribution last week. Lack of space at the hub had caused a collapse of service levels at the end of 1999, he said. Geodis took over United Carriers in May 1999 and has since then:

¥Completely replaced the ageing 450-truck fleet with new vehicles and trailers in the new livery. This has helped reduced operational costs by £3m a year, 30% of the line haul costs.

¥ Decided to concentrate on the multi-parcel 30kg to 300kg market. This is heavier than many parcels companies but lighter than the pallet operators.

¥Ended the three-day service that used to make up the majority of its business and will move instead to next-day delivery. It is also launching a flagship Elite service with very high service levels which is planned to be 5% of its business.

¥ Improved its IT systems to allow proof of delivery to be seen via the Internet.

¥ Added 27 extra doors at its hub to give more space for the 50,000 parcels going through the system each night, and allowing it in future to add ten to 12 new depots. It now needs only one sortation each night which enables the hub to be used as an additional Birmingham depot during the day. It has also developed regional hubs and allowed direct moves between depots.

¥ Changed much of the management, which is now headed by managing director Jean-Marie Dutoya, and changed the name to Geodis United Carriers.

Dutoya says: ‘Excellence as standard is now our watchword. ‘That is not just among the senior management team but it is in the blood of this company.’