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A regal export agency for vehicles

11th May 1973, Page 83
11th May 1973
Page 83
Page 84
Page 83, 11th May 1973 — A regal export agency for vehicles
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Which of the following most accurately describes the problem?

by Johnny Johnson

PERHAPS one of the least recognized agencies through which vehicles are exported from the United Kingdom is the Office of the Crown Agents.

The Crown Agents for Oversea Governments and Administrations, to give the organization its full but rather ponderous title, acts as financial commercial and professional agents for about 80 governments, public authorities and international bodies. It does not act for individuals or private commercial concerns.

Its main function is to serve governments and public bodies with supplies, services and equipment which are not available in their own countries. The best use is made of the foreign exchange available by competitive buying by a team of 200 buyers.

Shopping mound Normally, orders from its principals are put out to tender and placed after quotations have been received. In supplying road vehicles, however, experience has provided a knowledge of what is available and the price which is likely to be asked. Vehicle purchases are, therefore, usually as a result of direct contact and shopping around.

When the orders are associated with loans from the World Bank, however, the tender procedure has to be followed and they must be sought worldwide. In these cases the Crown Agents will undertake specification, tender evaluation and inspection.

Whatever method is adopted often results in reduced prices or discounts because of the scale of the transactions. Savings made by buying at advantageous prices are passed on in full to the principal.

On average, the Crown Agents are responsible for the export of about 2000 vehicles a year. While freight vehicles and some buses will be included in that total, the majority will comprise special purpose vehicles such as ambulances, mobile X-ray units, mobile workshops, fire-fighting equipment and vehicles for municipalities, including street cleaners and refuse collection units.

Among the vehicles which the Crown Agents procures for its principals are a number of second-hand units. These, too, are bought in the light of experience of what is available and where they are to be obtained in a good condition at a reasonable price.

If a piece of equipment is being bought for the first time, the Crown Agents will collaborate with its principal in deciding the suitability of the vehicle for the job and the best specification to which it should comply.

Many of the purchases, however, involve the supply of units similar to those which have figured in previous orders. This is logical in view of the difficulty in operating mixed fleets. The quality of staff available and the restricted technical knowledge which mechanics and fitters have in some developing countries, inhibits the choice of vehicle types.

In selecting vehicles, attention has to be paid, too, to the availability of servicing and maintenance facilities in the country in which the vehicle is to work.

There is also to be taken into account the existing stock of spares which might be held by a purchaser for a particular make of vehicle. To replace one make of vehicle with another could result in a considerable financial loss in disposing of redundant spares.

Provision of inspection and quality control is also available with a staff of 80 qualified inspecting engineers and technicians operating a worldwide service.

Vehicle manufacture and specifications are so well known, however, that inspection and quality confirmation is usually confined to examination of the completed unit before shipment.

The organization has its own shipping department which arranges dispatch of completed orders with shipping companies and airlines. In 1971, however, an outside broadcast television van was driven overland to Abu Dhabi. Problems were met at several Customs posts and the vehicle was delayed for two weeks at the Turkish border. Running repairs had to be undertaken on the route also.

Special arrangements had to be made to deliver some heavy earth-moving equipment to St Kitts because of limited landing facilities there. The carrying vessel had to be loaded with two dumb-barges which were off-loaded and lashed together to form a pontoon. This then ferried the equipment to the beach where a ramp had been con

structed for the landing. Just some of the difficulties which the Crown Agents must meet and overcome to deliver the goods.

Self-supporting

Funds are held and accounts kept for each of the principals using the Agents' service and each principal receives details of all transactions carried out at least once a month. This means that orders from the Crown Agents meet with ready acceptance from suppliers and the need for suppliers to verify the financial status of the ultimate recipients of the goods is eliminated.

The success of the Crown Agents in its business methods is reflected in the fact that it is entirely self-supporting from the charges made on its services and has no call whatsoever on British public funds.

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People: Johnny Johnson
Locations: Abu Dhabi

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