UK Lynx logistics set to surpass the parcels
The Solutions division set up by Lynx Express last year will be bigger than the company’s overnight parcels business in three to five years, according to chief executive David Burtenshaw.
The UK parcels market was likely to grow at a sluggish 5% by volume this year, Burtenshaw said. Lynx won more than £12m (€17.6m) of express parcels business in what had been “a turbulent year for some of our competitors”.
But many operators were predicting a 10-15% increase in overheads thanks to the Working Time Directive, employment costs, insurance and fuel. Some of this could be absorbed by efficiency gains but Burtenshaw said: “We will be looking to customers for the rest.” The parcels slowdown means carriers are diversifying and Lynx brought in logistics specialists last year to build on its expertise in meeting more complex distribution needs.
The Solutions arm has won business from the likes of Xerox and IBM, and saw a 10% increase in revenue during the year.
Lynx was competing successfully with the integrators and major postal companies, Burtenshaw said. “We’re not burdened by bureaucracy. We listen to what customers say and develop solutions on a bespoke basis.” Lynx’s overall turnover was 8% up at £160m (€235m) in the year to 30 September and profit increased 24% to £5.2m (€7.6m).
International operations increased 28%, the Partsflow in-night spare parts delivery business 22% and parcels 8%.
The company continues to expand its air linehaul operations, adding a second Eindhoven flight into Coventry earlier this month. It also flies three times a night from Frankfurt and once from Paris, and international director Nick Basford told IFW the company was mulling a Hamburg flight after approaches from customers.
Because combined air and road delivery is often required, Lynx has moved its Partsflow hub to Coventry airport.
Deferred US parcel delivery, launched in collaboration with the US Postal Service, was “growing in line with expectations and is now carrying several tonnes a night, ” Basford said. Shipments included books, textiles and goods ordered over the internet by US customers, and were originating in northern France, the Netherlands and Germany, as well as the UK.
Mail is seen as another area of major future potential. Deregulation of UK mail could open up an £8bn (€11.8bn) market to competition, and Burtenshaw said Lynx had been in negotiation with UK postal regulator Postcomm for several months.
He announced a second, £3.5m (€5.1m) parcel sorting hub in Nuneaton which will double capacity to 400,000 parcels a night by February 2004.
Meanwhile, £3m (€4.4m) is being invested in IT, including a new branch management system, improved internet systems and replacement barcode scanners, allowing the company to provide real-time PODs.
Posted: 31/03/2003
