ADL plans expansion
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• Associated Deliveries Ltd, which distributes products for 22 national and international companies mainly in the grocery and confectionery field, is to spend £500,000 on the acquisition of new depots and vehicles and on improvements in the existing 14 distribution depots.
The company is to cease operations as a non-profit making organization principally oriented towards the exclusive needs of subscribing member companies. ADL will in future operate freely in the market place, offering services and expertise to a large number of potential users.
A fundamental restructuring of the company, formerly limited by guarantee, into a private limited company, has been arranged. The company becomes a wholly owned subsidiary of Associated Deliveries (Holdings) Ltd, which is itself now divorced from the immediate operational control of ADL while remaining custodian of the loan capital on which ADL's ability to expand has hitherto been based.
ADL, operating some 200 vehicles, stems from the wartime Biscuit Delivery Pool. The organization was backed by a consortium of companies requiring a non-profit making set-up to provide a joint distribution service. All participating firms accepted that by acting together their total distribution efficiency would improve. By delivering a number of products from one vehicle economies are made for users and customers.
Market research by ADL shows that companies manufacturing fast-moving consumer products whose yearly home trade tonnages range from 2000 to 20,000 tons could best profit from the type of service available. The aim is that 20 per cent of all goods ordered shall be on sale within two days of the order being received at the ADL depot, 90 per cent within five days and 100 per cent within seven days. The service includes storage, stock rotation, security and documentation.