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HOW STOBART DOES IT

14th May 2009, Page 22
14th May 2009
Page 22
Page 22, 14th May 2009 — HOW STOBART DOES IT
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Which of the following most accurately describes the problem?

Mark Dlchlian, analyst at investment advisors Edison, has tracked the success of Stobart Group in the general haulage arena. The business model in the market usually goes as follows: if a customer wants some haulage, a fixed-term contract to provide 20 vehicles to move goods from one place to another, it is put out to tender, but it is not efficient if business changes, Dichlian says.

"Stobart is different because it offers a flexible model. It carries goods for a number of customers in different directions. It guarantees a time and place. If the service is not used, you don't pay. You get a performance guarantee. But Stobart will charge customers for any delays — so there are some risks," he says.

Stobart is transparent on fuel prices and passes rate changes straight to customers, Dichlian says. So, with the recession creating uncertainty for all businesses, customers will tend to favour this model more, he says.

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