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Vans move up the used supply chain An increase in

14th March 2013, Page 35
14th March 2013
Page 35
Page 35, 14th March 2013 — Vans move up the used supply chain An increase in
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online shopping has led to vans replacing trucks in the supply chain Words: Alex Wright, MD of Shoreham Vehicle Auctions New supply chains have emerged, changing from 100% B2B to incorporate B2C transport, following the escalation of online shopping — and now the transport industry has to evolve by taking smaller vehicles on to the relatively unregulated LCV market.

Consequently, we see the dynamics of retail changing trends at auction, which becomes more prevalent in the lead up to Christmas.

For two years running, we have seen 3.5-tonne vans with higher mileages, because they worked short-term delivery contracts over the peak festive period, deflected by rental companies in January — usually a time when supply of these vehicles is sparse.

But now traders are anticipating this trend and are quick to secure these vehicles when they do arrive, so we also see extremely high conversion rates.

The latest National Association of Motor Auctions (NAMA) report reveals that 3.5-tonne vans came to auction with an average age of 17 months — three months older than in December and four months older than November. The accompanying mileage was a massive 40,432, compared with 17,845 in December and 20,797 in November. The under two-year-old sector saw 365 LCVs sold in January, a 58% increase compared with December, when 154 vehicles were sold in this age group. November was even lower, with 129 vehicles coming under the hammer. January 2013 was also the highest volume since February last year, when 508 of these vehicles were sold at auction, underlining this new trend.

Although shops such as Jessops and HMV have disappeared from the high streets, casualties of internet shopping, we should also acknowledge the benefits of expansion to the transport industry. • CHRISTMAS BOOST In the past, LGVs took Christmas deliveries from the warehouse to the shops. As today's consumer increasingly opts to shop online, deliveries are now made to people's homes and workplaces by the 3.5-tonne delivery van.

LGVs will mainly deliver items from the initial distribution points to the internet companies' warehouses, where the 3.5-tonne vans then pick up the items for home deliveries. Meanwhile, rental companies are fulfilling the short-term hiring of the under two-year-old 3.5-tonne vehicle to facilitate this requirement.


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