Tag: UK

Nightfreight – The Interview

Nightfreight is a specialist delivery business with a well-established national distribution network capable of handling items of all weights and dimensions. The company made a name because of its specialism in handling ‘difficult’ parcels, but in fact its overall offering is quite diverse covering a full range of delivery options including next day and three day delivery, 2-man home delivery and a dedicated contract logistics service. Earlier this year Nightfreight launched a ‘Pay as You Go’ 2 man home delivery service designed to save retailers up to 50% of their existing transport costs. This new delivery solution is the UK’s only independent shared user network service available to retailers on a pay as you go basis for an unlimited range of products. Nightfreight’s Managing Director Peter Louden talks to WLN.

WLN – Peter, can you summarise exactly what Nightfreight does?
Nightfreight is first and foremost a parcels carrier, with about 90% of our 5,000 customer accounts consisting of network operations made up of classic overnight deliveries and what is often termed “difficult” freight. However, we are also a major player in the two-man home delivery sector and our Deliver2home service now accounts for more than £40 million of our revenue. We also operate a range of other specialist home delivery options and a dedicated logistics service.

The company currently employs over 2,300 staff at over 70 operating sites around the United Kingdom and operates in excess of 1,000 vehicles. Last year we successfully delivered over 18 million items and have a turnover of £140 million pa.

WLN – Can you tell us more about the Nightfreight ‘Pay as You Go’ home delivery service?
The service, is managed through our Deliver2Home division and is targeted at medium and large retailers who are currently using fixed cost resources such as dedicated vehicles and warehousing, either in-house or through a third party, which have to be paid for fifty-two weeks of the year, regardless of usage. The savings, up to 50%, can be made through reducing or eliminating these fixed costs and replacing them with a variable charging structure (Pay as You Go) that directly relates to the number of deliveries required. As a result, retailers will be able to deal with peaks and troughs throughout the year without incurring unnecessary price penalities.

Other benefits of the service include the ability to deal with difficult geographical demands – Deliver2Home offers a daily delivery to 90% of UK postcodes and with varying weekly delivery timetables to all other postcodes areas – guaranteed service levels, a web based booking system and track and trace.

WLN – What is behind your decision to launch it?
Now more than ever retailers are facing increased delivery and fuel costs, customer demand for higher levels of service and an uncertain market. Understandably they need to look to their supply chains as a way of saving money or risk seeing their margins eroded by distribution costs. Nightfreight’s unique ‘Pay as You Go’ solution will enable them to save up to 50% of their costs whilst maximising productivity levels within their remaining in house and/or third party assets.”

WLN – So is home delivery becoming an increasingly important part of your business and how else are you targeting this area?
Home delivery is a growing market, and there’s a clear move towards outsourcing among online, catalogue and high-street retailers. This creates an opportunity for us to expand in this market.

The Nightfreight network has the ability to deliver a wide range of products to anywhere in the UK including anything from lamp posts and digger buckets to mattresses, treadmills and swimming pools. Deliver2home draws on Nightfreight’s experience of handling awkward products to enable retail and manufacturing customers to concentrate on their core activities safe in the knowledge that their products will be delivered by an expert on-time and undamaged.

We also

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City Link announces new senior management team

City Link has announced a new senior management structure.

Heading the new senior management team is recently appointed Managing Director Petar Cvetkovic, who was previously Chief Executive Officer at Target Express, the company that City Link parent Rentokil Initial Plc acquired for GBP 210m in November 2006. Petar has a wealth of experience in this sector and over many years has built a strong reputation as a hands-on leader and team builder.

He is joined on City Link’s new Executive Board by Stuart Godman, Sales & Marketing Director, Operations Director Phil Duckworth, IT Director Linda Van As, Human Resources Director Pat Stringfellow, Support Services Director Ken Johnson and Finance Director Colin Tyler, all extremely experienced in their line of expertise. For example executive Phil Duckworth has a successful career track record in Operations in both businesses with City Link for 10 years and Target Express for 6 years.

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TNT Post – Royal Mail's biggest rival (UK)

According to the latest annual Business Customer Survey from Postcomm, TNT Post has confirmed its market leading position in the deregulated postal market. The survey of 1800 businesses found that, of those surveyed, 38 per cent were aware of TNT Post’s services, beating its nearest rival by a considerable margin (DHL Global Mail – 24 per cent).

The survey also highlighted that TNT Post, which had the largest base of customers among the survey’s respondents, has seen growth across all types of mailing services such as sorted and unsorted solutions.

TNT Post, formerly TNT Mail, was established in early 2003 and signed its downstream access agreement in April 2004 and began operations in late August 2004. Since its launch, it has developed a number of products for customers including Premier, Premier Sort and PremierSort Flex. TNT Post is the second largest UK postal company and currently handles between 190 million to 200 million items a month.

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IT key to DHL green commitment

Logistics provider DHL is using IT as a key part of its commitment to reduce the firm’s carbon emissions by 30 per cent by 2020.
The company owns a huge network of vehicles and warehouses, each with its own constantly changing carbon footprint.
Accurate assessment and real-time analysis of this data is vital in assessing the carbon footprint of a supply chain, according to Karl Feilder, chief executive of DHL neutral services.
Accurate information is very important for DHL. If the information is wrong, the company could end up hedge buying fuel at the wrong time, or investing in innovation where it is not needed.
In some cases DHL estimates that there are as many as 47 companies involved in its supply chain, leaving much space for error in its analysis of information.
A survey of over 1,000 logistics executives by DHL in conjunction with Oracle and Capgemini found that only 38 per cent of respondents were satisfied with their third-party logistics provider’s information technology capabilities.

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GLS invests in French network expansion

GLS has opened a larger new depot at Gennevilliers, north of Paris, as part of EUR 10 million worth of investment in its French network this year.

Located close to the nearby port, the 5,000 sqm depot has 60 docking doors gates and a large sorting area. It is equipped with state-of-the art conveyor systems able to increase sorting capacity up to 7,500 inbound shipments and up to 9,000 outbound shipments an hour and thus improving the company’s productivity considerably, GLS France said.

Separately, GLS France has invested about EUR 2 million in the modernisation of the sorting systems in its depots in Roissy and Fleury to cope with peaks in business activity that can increase up to 20 pct on certain days, thus responding to growing customer needs in terms of flexibility and reliability. Capacity at Roissy will go up from 5,000 to 7,000 parcels per hour.

In Europe, some other major investments are planned such as the construction of new depots in Stuttgart, Germany, and Zirl, Austria as well as the expansion of the existing sites in Neustadt-Glewe and Leipzig, Germany, and in Czeladz, Zielona Góra and Wroclaw in Poland, GLS France noted.

In addition to this investment in production equipment, GLS also aims at optimising its information systems to further strengthen parcel security and tracking transparency.

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