New UK logistics company launched
A new logistics company has been launched in the UK market. Innovate Logistics, part of Innovate Holdings Group, has been created from the merger of five companies specializing in temperature controlled warehousing as well as value added activities such as packaging. It has a turnover of around €45m from its existing revenue streams, warehousing of 163,500 sq m and employs 581 staff. In addition to some road based distribution, it has its own rail operations running its own fleet of wagons mainly for the movement of steel products.
The company has plans to grow rapidly over the coming years. Although at present it has a fleet of 70 tractor units and 110 trailers, it sees transport as a key area in which it wishes to develop. The result will be an integrated distribution operation which will bring it into competition with many of the UK’s largest logistics operators. However presently it also partners with a number of its larger rivals, providing them with specialist facilities. Its largest clients are Unilever (ice cream and frozen foods), Corus (formerly British Steel) and Nestlé.
Entering the market at this stage will provide the company with certain key competitive advantages over its rivals. Whilst many companies have been left with ‘legacy’ cold stores and distribution centres which are positioned at non-optimal locations, it has been able to site its new build facilities to take advantage of the UK’s road and rail network. Also by ensuring that its new sites comply with environmental legislation (for instance by using environmentally friendly coolants) it is less likely to incur major refurbishment costs in the future.
