THE NEW NIGHTFREIGHT DELIVERS A RECORD PERFORMANCE

One year on from a management buyout (MBO), Nightfreight has
refocused and streamlined its overnight freight and parcels delivery
service, repositioned the company, achieved market leadership in the
mixed parcels and IDW (irregular dimension and weight) freight niche
and delivered an impressive set of trading figures in a very competitive
market place.
• Sales increased by 13.7%
• Profit up by 32.8%
CEO Robert Kelly, who led the MBO, is upbeat about the Midlands-based
company’s performance over the past 12 months: “We
recognise there is still a long way to go but by freeing ourselves
from the shackles of a plc, with the backing of Barclays Private
Equity, we have made impressive strides forward over the past 12
months.
“Rather than aiming to be a conventional carrier providing
overnight deliveries of traditional square packages, we have
successfully refocused the business to become the leading player
in a distinct market niche, namely the mixed parcels and IDW
freight sector.”
Back in early 2001, the MBO plan was to restructure the group to create
a more cohesive, less fragmented business around two core divisions,
freight/parcels and logistics.
The Group was restructured: four subsidiary Boards were combined to a
single Operating Board to guide decision making: and six new regional
directors were appointed to strengthen management within the
freight/parcels division.
The loss making forwarding division was sold and replaced by a
European Gateway service. This is operated from Nightfreight’s three
hubs using its network of 50 depots to provide UK collection and delivery
services for European customers.
A range of quality initiatives were launched to drive service
improvements across every part of the business to bring Nightfreight
closer to its customers and make it more responsive to their needs. An
independent research agency was retained to track customer opinion on
a six monthly basis. Feedback is noted and action taken as appropriate.
Within the freight/parcels sector, Nighfreight’s strategic rationale
identified the overnight delivery of mixed parcels and IDW freight as the
area with the greatest potential for development and growth.
Most carriers focus mainly on small parcels which are managed by
automated handling systems but cannot deal with automated freight.
Nightfreight, however, has developed a hub and depot network that
combines limited automation with manual handling sortation.
Customers with a mix of parcels and IDW freight are often forced to split
their parcels and freight deliveries between two or more carriers.
Nightfreight has developed its service to take both.
“We have become a niche player in the delivery of documents,
parcels and IDW freight,” added Robert Kelly, “and have achieved
market leadership in the mixed parcels and IDW freight sector.
”This No1 slot is not an assumed position but is fully verified by
independent market research commissioned in November 2001 and
completed in March this year. This research identified key players
in the UK Overnight Awkward Freight Market, estimated the market
size and established Nightfreight’s market share.”
Nightfreight’s freight/parcels division has seen year on year consignment
values increase by 12.7% over 2000, to an all time record level as the
Group continues to increase its market share.
In the logistics division, both Pacemaker and network logistics have won
new contracts and gained additional business from existing customers.
Pacemaker provides specialised handling and two-man delivery of IDW
products, such as furniture and vending machines. This includes
installation, removal and scrapping of old products, repair,
replenishment and on-site training.
Nightfreight’s network logistics service, under contract, combines group
network delivery capabilities augmented by additional fulfilment services
including dedicated transport, warehousing, stock control, call centres
and e-commerce.
To endorse its intentions to be number one in its class and to help
accelerate its growth in market share, Nightfreight felt the need to
sharpen its image and visibly make a statement to the market. “Our
recently launched new look clearly elevates us to where we want to
be – right at the top of the IDW freight and parcels market,” says
Robert Kelly. The new brand image encompasses new vehicle livery,
branch signage, interior design for the entire network of hubs and depots
and can be seen across all printed material.
Concludes Robert Kelly: “The strategy is right. The restructuring is
almost complete. The new image reflects our vision for the future.
Our 2001 performance has exceeded both our and our backers’
expectations. Service quality is improving and customers continue
to respond favourably to our initiatives. The business has
developed a strong momentum and a foundation for future growth
and development has been firmly established.”
– ends –
Notes to Editors
Nightfreight is the UK leader in the overnight delivery of documents, parcels
and freight of irregular dimension and weight. It operates a fleet of more than
1,000 vehicles, a 150,000ft hub at Willenhall in the West Midlands and 50
depots nationwide. The Willenhall based overnight parcels, freight and logistics
specialist offers its customers a mixed parcels and freight capability which
combines limited automation with manual handling and sortation.
Freight is defined as being of Irregular Dimension and Weight when it is longer
than three metres and/or is unsuitable for standard conveyor systems (two
metres wide with 90 degree bends requiring uniform labelling for reading bar
codes) and/or requires mechanical lifting equipment and/or manual handling.
An application to register IDW as a Community Registered Trade Mark is
pending.