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Kriaris Cartage Contractors
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Birmingham or Brisbane: wherever you go, "outsourcing" is the buzzword for ownaccount operators. When Queensland-based food and drink producer Golden Circle was faced with replacing its ageing local distribution fleet a year ago, it concluded that the money needed for new vehicles would be better spent on its drinks processing and canned fruit operation.
Warehouse and distribution manager Stephen Whapharn explains: Two things swayed our decision—the cost of running our own fleet and the massive capital we'd have needed to replace it; some
AS1.5m. We can spend that money elsewhere, back into the core business."
So far, so good. The problem was to find a local haulier who could do the same task and then some. Having put the job out to tender and reviewed the bids, GC's choice of local haulier Kriaris, an existing contractor, to handle the 50,000 tonnes-a-year contract was perfectly logical, if not downright obvious, fora variety of reasons.
"It was the lowest," Whapham says with a broad smile, adding: "But there were some good partnership opportunities, especially as it had plenty of trucks heading in this direction," Operations manager Matthew Kriaris takes up the story: "We were already carrying packaging into the plant and looking for a load out. It was a golden opportunity for product in/product out, with half of our local vehicles already accounted for."
Kriaris's local knowledge and obvious synergies helped it beat off competition from much larger competitors, as well as an existing contractor already bringing packaging into GC's main factory. Under the deal, which started in December 1999, Kriaris is now responsible for delivering all GC's products to supermarkets and distribution centres in the Brisbane area---work previously handled by GC's own fleet.
The job involves tightly timed deliveries. 'That was crucial as delays were crucial to us," says Whapham. "Kriaris also provides 4,000 tonnes of holding storage for us off-site."
So far the five-year partnership, which includes a yearly review, appears to be ticking over all right. "During the implementation there were some hiccups," Whapham acknowledges. "But as the volumes we predicted grew it has presented us with a lot of opportunities. By using our partnership with Kriasis more to pick up packaging that was previously brought in at a fixed cost by the manufacturer, we've also gained greater control over our costs, which allows us to pass on savings."
To join its existing 50-strong fleet, which includes International models, Kriaris has brought in two lveco EuroTech MP4500 6x4 tractors powered by 370hp Cummins ISM engines. According to Matthew Kriaris, the International/Iveco trucks "have been very good. The sales and service from the local dealer are good too."
The EuroTechs pull four smartly liveried GC curtainsiders with unusual load handling equipment built into their floors. When combined with a special dock at the GC plant, they allow a full 24tonne/22-pallet cargo to be loaded or
unloaded within eight minutes. When the Kriaris artic reverses on to the loading bay, guide rollers on the trailer's underrun bar and airbags in the dock ensure perfect alignment.
As the pallets are pushed onto the empty trailer they rest on two chains that run the length of the cargo deck and are driven by an electric motor mounted beneath the trailer's frame. The chains move the pallets forward until all 22 are on board. The driver then checks the rear row and he's ready to roll.
To unload the cargo the chains are simply set into reverse and the pallets are carried back out.
These roll-on/roll-off curtainsiders don't come cheap—A$116,000, compared with A$65,000 for a regular curtainsider. There's a weight penalty, too, as the chain drive is pretty hefty. But Kriaris reports that this is not a problem, as the artics seldom ran to their gross maximum. However, the potential savings in turnaround times are massive.
The GC contract signals a new direction into the logistics field for Kriaris, Which was founded by Matthew's father George some 30 years ago when hi started his transport career deliver ing milk. Today the company has i turnover of A$4m with what Kriarii describes as an "acceptable" return
Meanwhile, Golden Circle hai extended its relationship with lveco having ordered three EuroCargr
rigids with dual-compartmen controlled temperature bodies to' soft drinks sales vehicles operatin trial local delivery runs to shops schools and clubs. Using hand-heli computers with on-board data log gers, the salesmen can produce on the-spot invoicing with stock contrc information for daily downloading.
The 3.5-tonne-payload EuroCargoe were supplied by the local Brisbark International/Iveco dealer, whid worked closely with GC on its spec. the concept proves successft Golden Circle might order a furthe 36 vehicles with the sales operatio franchised out. Another opportunit for Kriaris, perhaps?