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Tuffnells gains Independent

1st December 1988
Page 14
Page 14, 1st December 1988 — Tuffnells gains Independent
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Which of the following most accurately describes the problem?

• Tuffnells Parcels Express has taken over fellow Transport Development Group carrier Independent Express with the loss of 110 jobs. It has also closed five depots and the company's Northampton headquarters.

Independent's pink livery is going and all 500 vehicles will run in Tuffneli's green colour scheme. Former Tuffnells deputy managing director Paul Gregory heads the new E30 million turnover operation, in charge of 20 depots and 1,334 employees.

Gregory says that one of his first, and most important, tasks is to take the new Tuffnells into Europe and he flew out to the Continent this week in search of a European partner. TDG's European holding company, Omnium de Stockage et de Transport (OSTRA), is helping him to find a suitable contract.

Tuffnells will look at France first, seeking a contractual link with an established operator. "If you can deliver goods in Europe using someone else's infrastructure, why take your eyes off the ball by setting up your own infrastructure?" asks Gregory. "One thing's for sure, I won't be buying and using my own planes."

Tuffnells, which is more than 75 years old, made £1.1 million profit last year (Independent was in the red) and Gregory is confident that the new opera

tion will be profitable from day one. Tuffnells' return on capital invested was 20.4% last year and, though this may dip slight ly with the merger, TDG will expect it to be regained as soon as possible — certainly before the end of next year.

Gregory will simplify Tuffnells' four-stage, four-zone tariff system and plans to acquire any other likely parcels carriers. He is determined to be one of the express freight's six or seven leading carriers frj the middle of the next decade.

The company eschews a central parcels sorting hub, preferring to trunk demountable box bodies around the depot network. This too may change if Gregory wants to improve Independent's lacklustre overnight delivery reputation.

David Allen, former boss of the two TDG parcels carriers, now heads Express Development Services, and will not take a direct managerial role in the new enlarged company.