Seasonal gear
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Tjeggett Freightways is one of the grandaddies of freight. Set up by the three Linney brothers in 1963 the company is run from unprepossessing huts on an industrial estate in Enfield. But this nofrills operation employs 350 staff, including 150 directly employed drivers from eight UK operating centres.
The Linney family is still at the helm—the name Leggett was bought by the company years ago, and stuck with because it was well established. Its offices are conspicuously lowtech—the only word-processor in evidence is used for internal business, everything else is paper based.
Yet the company is one of the leaders in mail order and catalogue trade. Early December, when CM paid a visit, at the height of its busy period, was bound to be fraught. Time is at a premium and cousins Leigh and John were working flat out.
Both are keen to boast of their blue-chip customers with whom they work in partnership—including Index/Littlewoods, Woolworths, Superdrug, Argos and Great Universal Stores.
The company's trading strength comes from its innovative approach to the mail order and catalogue industry. Leggett has carved a niche as a dedicated carrier in this sector. It has pioneered partnership deals in which it is given nominated carrier status by retailers. Leggett is allocated delivery slots and it is Leggett's responsibility to contact suppliers to the mail order/catalogue houses and secure delivery deals for these slots. So far it has around 10 deals.
John Linney believes his company is the industry's leading light in piloting this system of supply chain management partnerships. "No UK haulier is doing it on the scale we are," he says. Because it has been operating in this way for the past 10 years it has become expert at selling the advantages and can demonstrate a strong track record. Leggett boasts that it can deliver in the mail order sector within 24 hours of being allocated a slot.
Goods inwards
For the catalogue/mail order operation the system means better control of the flow of goods inwards from suppliers. This is important with companies keen to adopt a just-in-time approach. No one, from manufacturers to retailers, can afford to have their capital tied up in unsold goods or unproductive space, hence the need to switch to JIT which results in smaller quantities of goods being delivered more frequently. For both the retailer and the manufacturer the benefit comes from being able to specialise in what they are good at, leaving the headaches of a delivery operation to another specialist.
The haulier gains from the clout of being an approved carrier having been vetted by the retailer who also gives him a list of suppliers to approach for work. By carefully matching supplier/retailer needs, the haulier can maximise load size and minimise the number of pick-ups. For added flexibility goods can be held in storage until required.
Leggetts is well off in terms of storage space having more than 93,000m2 available, although the company prefers not to store because of the additional costs of unloading and reloading, the risks of damage the longer goods are in transit and problems of accessibility.
The company is not a bulk haulier, but is always looking for return loads to maximise income.
Leggett aims to standardise all the elements of supply chain management as far as possible by using regular-sized pallets and its own standard documentation.
What does not appear to be standard is its price per pallet. That depends on the customer, the load size and many other factors. Leigh believes price per pallet is not a key issue: "We might come in with an offer to deliver at a higher price than rivals but the
manufacturer will be happy because he has the certainty of knowing his goods will be delivered on time."
To both the manufacturer and the retailer in this chain, Leggett represents "one ass to kick". If it fails to deliver on time and as agreed then it loses its preferred carrier slot and all the benefits of economies of scale which had accrued. Leigh Linney admits it provides a strong incentive for the company to stay on its toes. "We are only as good as our last delivery and if we foul up that can send a shock wave back to the supplier."
Just as the concept of supply chain management arose out of recognising the needs of the retailer, Leggett has been quick to find other outlets for its services. It operates an import/export forwarding business which is now being used to bring in goods from abroad for Littlewoods.
It also retains some more traditional contracts—with electrical companies Bush Hinari Alba, Sony and Goodman.
Catalogue operation
Planning its mail order and catalogue operation starts months before Christmas. Leggett has been working on it since July. As work grows to a peak, the company can hire additional vehicles and drivers to add to its 100-artic and 50-rigid fleet. Currently it has 12 tractors and 12 rigids on hire.
One of Leggett's greatest assets is the family. Twelve family members are in the company bringing a wealth of experience. "We try not to talk shop when we are away from it," says John, but you feel they probably talk of little else. Keeping it in the family brings huge benefits to a company. The haulage industry is littered with stories of firms which foundered once the brains moved on or once a key director took himself and the company secrets off elsewhere.
The fleet is predominantly F.RFs. This year it had intended to replace its hired vehicles with ERFs but the high volume of business meant the 13 new ones were used to expand the fleet: more orders are in the pipeline for ERF. Why that marque? "They are tailor-made to my instructions," says John, "their long-term assessment is very good on things like miles per gallon, they hold up well in terms of maintenance and spares are easy and reasonably cheap to come by" Vehicle and depot security is not a problem partly because of high security but also as the business is operating 24 hours a day six days a week. An enviable position.
L by Kathy Watson