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RE THAN UST METAL

18th February 1999, Page 106
18th February 1999
Page 106
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Page 106, 18th February 1999 — RE THAN UST METAL
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Which of the following most accurately describes the problem?

The FM will be a welcome NFC company was bought — and now the dust has se contract hire arm offer you

) BRS's fleet. The former ,ontract Services a year ago L can Volvo's rental and

PHIL CHAPMAN, MANAGING DIRECTOR, ORS

BRS is a resource provider, and one of the things we are looking to do is help our customers manage risk better — rental is certainly an excellent way to minimise business risks without being financially exposed.

In times of economic uncertainty, renting vehicles (le taking them for a period of up to one year) becomes more of an attractive option; it completes the set of vehicle acquisition methods available. With the purchase of BRS. Volvo has a unique position among truck manufacturers in being able to offer the complete range — from one day's rental to long-term contract hire with a supporting range of options on finance, insurance and maintenance. We're here for customers to offload their risk onto us.

At BRS, our role is to provide resource when the customer needs it most. Increasingly, logistics companies don't really want to own and run trucks — they are moving up the supply chain — and we are in the best position to provide the resource they need. And as the well-documented driver shortage becomes more of a reality, then contracting out the resource requirement will become more at-tractive.

We'll go wherever the customers are. BRS have enough people with the skill and competence to manage vehicles and drivers on a local or national basis. Prospective drivers are knocking at our door and we can offer them a great variety of work; first rate training through Volvo; and a more competitive employment package than they might get working for some transport companies.

The rental market is at its most turbulent in the ten years I've been in the business. BRS has a much bigger fleet now than we did with NFC — we've almost trebled it in a year — and it's a lot newer with most trucks on R and S plates. However, prices have fallen to such a level that only the very strong have a future. White hot competition is good for the customer — even if the rental companies long for the market rates of four or five years ago!

As well as competitive prices, custom( demanding increased flexibility from r providers — they want to have resourceE able on tap and pay for them when the them. It's something the industry is try get its mind around.

Resource solutions: that's our busin BRS. We've got to offer an array of servi customers demand increasing flexibili need to help them reduce their costs an pete more effectively in their markets. here to help.

BARRIE CLOAD, MANAGING DIRECTOR, VOLVO CONTRACT SERVICES

you think of Volvo contracts as just nother contract hire company or finance louse you would be very much mistaken. "h ink of Volvo Contract Services as a risk 'gement company. We're here to work :ustomers, to understand how we can add and to deliver what we say we will deliver. at means we need to have an open mind and embrace all aspects of the business whether it be financing, maintenance, fuel or driver issues. After all, people look to Volvo for more than just the metal.

We believe we have a portfolio of products that is the broadest in the industry. We can offer a host of products which we can mix and match to develop solutions for our customers. Not many service providers in the industry can supply a funding product with insurance and maintenance. Add to that capacity management or a driver management programme and you can see how our services can be flexed to provide real risk management for the operator.

We have recognised that Fuel and drivers are the areas that hold the key to operating efficiency for the industry and by providing highly

trained drivers who are skilled in fuel-efficient driving, total costs will come down. You may pay more for them but in return you can expect more from a better-qualified driver.

And with there being a dearth of drivers, it will be harder to find ones that meet your business needs and expectations; two-thirds of the cost of operating a vehicle is tied up in drivers and fuel, so the savings and peace of mind this can provide could be substantial.

Another area of the business where we are very focused is uptime. Trucks have to be maintained of course—but not at a time when they are supposed to be working. Customers are getting more involved in activities other than pure transport — such as logistics — so fewer companies want to be involved in maintaining their fleet.

We will provide known costs with guaranteed uptime so that our customers can deliver a premium level of service to their customers and that for us is what it is all about. The greater the "certainty" that we can deliver for our customers, the more difficult it is to change from the Volvo product.

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