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1 GROWTH
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With success comes the need to reinvest, which is why 26 new Volvo trucks will be rolling into the depots of Suttons Group tanker division for the first time this month. Bridget Carter reports.
Mark Haslam 's CV reads like that of someone who has spent a lifetime in the haulage industry. He has gained a BSc in business administration from Bath University, run a depot for major transport player TDG, held down an impressive string of senior roles with logistics giant Wincanton and spent the past year as managing director of the UKTanker Operations division at Suttons Group.And he's still only 36.
His boss Andrew Palmer. Suttons Group managing director, said at the time of his appointment last year:"Although he is only 35, he has a depth of experience and knowledge of our markets."
So it should come as no surprise that since Haslam arrived at the Cheshire-based bulk liquid and gas specialist, he has made great strides in driving up turnover.
The tanker division's latest results claimed almost £33m of the group's total £81m turnover and the September figures are expected to show a significant rise for the group overall.
Contract extension That turno■.er grow th will continue this year thanks to the extension of at least one major UK petroleum contract in the South-East — but Haslam is reluctant to name names without the client's agreement.
The four-year contract extension doubles the existing contract's volume of work, and has prompted the company to spend almost £3.4m investing in 26 Volvo tractor units. The trucks will drive into the firm's Essex,Gretna and Hull depots for the first time this month.
Previously the company had a mix of Volvos and Ivecos, but the strong performance of the Volvos at one of the firm's depots convinced the management team to go with the brand once again.
Haslam says 12 of the new trucks will be additions to firm's current fleet, bringing the total to 250.They will operate on the company's petroleum distribution contracts from the Essex Depot in Grays.
The other 14 vehicles arc upgrades replacing existing vehicles and will operate from the company's depots in Gretna and Hull.These will be for tanker contracts.The trucks at the firm's new Gretna depot will be double-shifted on delivery duties to and from chemical plants at Grangemouth and elsewhere in Scotland.And significantly, the Gretna depot will become the company's first to host a fleet consisting entirely of Volvos. All those tractor units will have digital tachographs.
The group's managing director Andrew Palmer says that Volvo has an excellent reputation for safety. They provide low whole-life costs. In particular, they are economical on fuel."
As with many transport and logistics firms. Suttons is still evaluating the benefits of moving to Euro-5, and this will be a significant factor when the time comes for the next round of truck upgrades.
"Before we place another order, we need to be clear whether we're getting benefits from Euro-5 [and resolve] the debate between SCR and FOR."
Currently the firm is implementing digital tachographs across its fleet. Gretna is its only depot in which all the trucks have these devices and so far things seem to be going smoothly.
Worthwhile investment
Haslam says the company felt the best thing to do was to roll out digital tachographs on a depot-by-depot basis in an effort to isolate problems and tackle them early on.
"It's going very well," he explains. "We have spent a lot of money investing in training. We bought a simulator to help out driver trainers. The investment is worthwhile and our drivers have taken to digital tachographs very easily."
So how has Haslam handled his first year in the role of managing director in the UK Tanker Operations division at Suttons Group'.'
It's been a very challenging year. he says, but one in which the company has been able to recover most of its costs. "We've managed to recover the fuel increases from our customers and we've managed to increase profit by reducing our cost base.We looked very carefully at that cost base to improve our margins."
With strong revenue increases in recent years, the future will see the UK Tanker Operations division focusing more on safety and customer quality, an area that it takes "very seriously".
"We haven't got a target for turnover growth," Haslam concludes,"but what we want to do is improve safety and quality for our customers." •