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Modern shared-user networks come at a price. But, as Tim
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Maughan finds, they can make for full LGV loads and increase that bottom line.
any upL cit,t;,, lament the loss of camaraderie in road transport.
• Where, years ago, hauliers were happy to help othe I companies out — especially with back Iklads al ILI ttb., klkt: an iiit.redingly COMpetili itliti k tjiiiIs tilL da.4:, 01 backdre iiitgL:ly gone.
But this does not mean that operators need to woi k alone. Online shared-user networks allow operators to post individual trips, which can then bL taken oil by other (31k:fakirs.
The .liansport Exam ige Group (1 LG) is such an outfitand it consists of the Courier Exchange and the Haulage Exchange.We visit its London HQ. Managing director Lyall Cresswell is one of 15 staff working from this site:five other staff are located in Nottingham.
Cresswell used to run a freight-forwarding company. but sold it in 1999 when he saw the "opportunities for online road transport marketplaces". So in came "a bespoke (IT) solution, which we developed from the ground up". There is a definite buzz about this office, located in a high-rise building in Willesden, north-west London. Given it is a wet Monday morning, this is encouraging.
"It's a bit like the stock exchange," Cresswell remarks — and he has a point. Individual haulage trips stream through the computer system. As the 'stock' moves, staff administrate the site, and sales personnel drum up new business. To date, there are 2,000 members in the TEG network . each of them posting individual jobs and taking other jobs on.
Cresswell guides us through the system , A road transport lirm in the Heathrow district, for example. needs to get a consignment to Manchester, But for whatever reason, they want to subcontract the load," he says. So the company posts the vacancy. Other TEG members contact the poster.The party wanting the goods moved then chooses the most suitable operator to do the job. a decision made according to price. location and SO on.
Freight exchange liquidity
Cresswell reports that on the spring bank holiday alone,1,000 individual transport opportunities were displayed on the TEG website.ln the whole of May,20,000 jobs passed through the system.This activity, or "liquidity" as he refers to it, is the lifeblood of a freight exchange. Similar set-ups have failed, he says, because they have lacked this liquidity.
He stresses that his company takes no part in individual deals theTEG is simply a 24-hour conduit to allow disparate hauliers to co-operate.
Annual membership fees differ, depending on the size and nature of the fleet, although Cresswell says hauliers and couriers pay in the region of E1,000.
A spokesman says all operators are vetted before they can join up.They must also show a good deal of commitment to the organisation before they are allowed in.
Much like the recommendation system on eBay. operators award stars to fellow members, depending on their performance.
There are clearly defined complaints procedures, too. When a member expresses his grievances by e-mail, the other party should respond within two working days. Unprofessional members can be struck off: Cresswell confirms that this has happened in the past.
Member management Luke Davies is TEG operations manager, but his work is more akin to an account manager. An operator may post 10 separate jobs on the system; eight may be taken up by fellow members. but two may remain unfulfilled. So the operator rings Luke to see if he can find a couple of members willing to take on the loads. "We want to make sure everyone gets value," he says.
Paul Walton, head of sales, says his team draws in fresh 'businessbut we aren't a hard sell". Potential members must fax copies of their 0-licence.along with other records, across to TEG personnel.
Cresswell emphasises the culture of the TEG. Owing to the team nature of the work, it is a big departure from traditional hireor-reward drops. New members must be prepared to accept the concept, he says. "They need to understand the benefits of working collaboratively. The system is win-win for everybody."
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