D s road transport
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companies go, Hitchinbased WRM Logistics (Contracts) must be one
A
of the largest operators in the Hertfordshire area. It is one of three separate businesses in a £21m group owned by the holding company WRM Logistics. The two others are WRM PaperLink. located in Kendal, and WRM Scotland, based in Cumbernauld.
The business was established as a shared user distribution specialist. In the early to late 1980s the trend was for dedicated distribution," says general manager Paul Kirk, "Thereafter people wanted to pay only for what they used, and that's what we are providing for an increasing number of customers."
From the Parkland Distribution Centre, Kirk and the rest of the management team focus on three major business sectors: food products, domestic construction products and garden furniture. Seven major clients share the bulk of the warehousing facilities, and this is the key to the business. We try to look for compatible accounts to match our business sector profile," he says.
Superior service
One of the advantages of shared user distribution is the opportunity to maximise investment by providing several customers of a similar profile with a superior service from a single site. With several clients on board, additional ''value added' services can increase profit margins still further.
At Hitchin, for example, such services include the repackaging of the warehouse goods before their final distribution. Additional revenue is raised through the storage and distribution opportunities provided to a host of smaller customers. Their business helps take up the surplus capacity, and the reap the benefits of the service designed for the larger clients. There i also dedicated distribution.
At the moment, there are thre major clients in a variety of busines sectors. These are Paperchase Retai Le Grande Electronics and a Tilbury based bulk paper operation known a M-Real. A total of 18 out-based vehicle service these contracts.
The daily activities of the shared use fleet include the collection of in-boun goods for storage and later distributio Tr a range of outlets and destinations Jr; -wide. A mixture of tautliners and xxes are used to achieve this.
In all, the WRM Contracts fleet knsists of 96 vehicles, but the corngad fleets of its two sister compaiiiis take the group total to more than i50. This makes possible a great deal if load activity between the various iperations: up to 14 truck movements night move between the depots. There is therefore a lot of subcon r icting work between the companies n the group, ensuring a healthy workoad for the Hitchin fleet, which often *quires its own subcontractors.
"In the main these are on traction wily. We use their tractors to pull our rulers" says Kirk. Most are regular rperators. but at busy times some vork is contracted out ad hoc.
lutward bound
Aost of the outward-bound traffic
s own-originated. Kirk estimates it over 60% of the work gonerclod for the fleet comes out of the varehouse itself. However, the cornany is not immune to the need to runt for work. Like many other iperators, it has to find return Duds to keep the profit margins lealthy, and these come from a van14 of regular sources. It can also
o 31( the help of its sister companies.
WRM Logistics (Contracts) was s tablished at the Hitchin site in 1995, vi en the parent company bought the 3(al business of TOP Distribution. low more appropriately classed as a rational rather than a local operator, ho new business has not lost touch vi :h the neighbourhood business .o-nmunity, Indeed, Kirk estimates hat up to 50% of the turnover that
o ices through the gate is from local laustries. As an example, he points to God products from two key accounts Lich as Bowman Ingredients and lo^dan Cereals, as well as the contruction products manufactured by co Technologies.
Thanks to the way WRM has valved as a company. Kirk says there ; 3 lot of regional business potential hat could benefit from its services.