Framptons Company Profile

Investing in expensive heavy trucks can only be justified where they are guaranteed to run every day — ideally 24 hours a day — and hauliers must try to limit their exposure to risk.
That’s the opinion of Paul Frampton, director of Shepton Mallet-based Framptons, who points out that in his business, heavy trucks cost the most, but make the lowest margin.
Adding to that is the Catch22 situation that companies must buy decent, modern trucks if they are to attract and retain drivers and ensure good fuel economy. “There are no low cost options:’
That is the reason why the company — which was set up in 1889— has changed radically over the past five years. He took the decision to reduce risk exposure, and Framptons has now changed from a predominantly international haulier to a regional one-stop freight shop which is part of the Palletline and Hellmann networks.
Now the business offers a diverse range of services, including pallets, parcels, a courier service, UK full and part loads and freight forwarding, explains Frampton. While the international haulage business accounted for 90% of sales five years ago, now it’s only
10%.
“We realised five years ago that UK international haulage wasn’t going to sustain us
because costs were so high — and we realised we would have to change. We’re in a rural area and because of that we thought we would have to have a diverse offering — we need to sell our products to all businesses in Somerset.
‘~ln future, we’ll only invest in heavy trucks where we can be assured of at least every day use — if not 24 hour use. We can’t have 20 heavy trucks on the spot market — it’s too uncertain as the margins aren’t there.
“We’re now investing in areas
of the business where we are ensured of continuity and reasonable levels of security such as Palletline, Hellmann, contracted work with manufacturers where we have established contracts, warehousing and freight forwarding.”
The company’s client base is a good guide of just how much the business has changed in the past five years: in 1997, Framptons had 20 accounts, with two key accounts; now, it has about 250 active accounts, the largest of which is a
contracted account which is worth only 10% of total sales.
The move has paid off, and the business’ figures justify the change. As an example, profit on sales for last November was 11% for the general fleet, but contracted business accounted for 16% profit on sales, the Hellmann and Palletline businesses 17% profit on sales, and warehousing 20%.
“In five years time we won’t run heavy trucks unless I have arrangements which guarantee the sort of returns I can make on the shared user areas of the
business which are consistently increasing in volume.
“We want contracted work, and if larger organisations feel they need us they must give us contracts which are attractive enough to make the investment required.
The other problem Frampton experiences with heavy trucks on the spot market is that they are very busy at month-ends, but can be quiet for the other three weeks of the month.
uThis happens all the time —
and we can’t find subcontractors when we are busy as they are busy too. The cash flow effect on haulage because of this peak is ridiculous. At least with the shared user systems our vehicles are only fuller and used better towards month-ends
However, he admits there is “terrific opportunity” for growth in the logistics sector.