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Offering service over volume
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Dennis Distribution is diversifying from its long-term niche of being a meat haulier, but says its approach of simplicity and service won't change.
THERE IS A SMALL corner of Malton. North Yorkshire, which has, so far, been immune to the recession.
Of course. Dennis Distribution has noticed the downward pressure on rates and the upward pressure on prices, but it has not seen the scythe slicing through clients for the simple reason that -people still have to eat:
Up until now, the company has been dedicated to the hanging meat market. a niche the fourth-generation family business settled in long ago.
"Sales have been stronger, partly because some rivals have gone, although we haven't got a massive amount of work from that," reveals commercial manager Andy Slack. But the company has been talking to everyone it meets, and those long, thoughtful discussions have stretched over weeks and months
Branching out
This patient dialogue recently paid off when Meadow Foods in HoIme on Spalding Moor decided to change its current transport supplier and offered Dennis the contract.
It promptly bought four tankers off the previous incumbent, refurbished them and will run them in Meadow Foods livery, transporting vats of cream and condensed milk to manufacturers. It is Dennis Distribution's first nonmeat load. As with existing client Dovecote Park, which supplies fresh beef to Waitrose, it will run the entire logistics account.
-We're very customer-facing," states Slack. "We understand what they want and offer quality and reliability."
Director Katie Dennis says that the firm appeals to those manufacturers who don't want to run their own fleet. but want to appear as if they do.
-Most companies would not be prepared to run just a handful of wagons in someone else's livery. But that is our strength.
"We work in partnership with our clients. We will take the products other people don't want; we'll take loads at any time of the day or night; and we're flexible and light-footed. We offer service over volume."
Slack and Dennis readily admit they "have not got the wherewithal to be running hundreds of loads into regional distribution centres every day': But, says Slack: "We don't conflict with the big boys, either. The stuff we move is not volumetrically sufficient for them and it's often complex to manage. There are lots of drop-offs, different consignment sizes and so on."
This company has already overcome a fair amount of difficulty, not least stepping smartly over the precipice of disinterest and discontent, which family businesses can plunge into when they hit the third or fourth generation.
-We've lost huge chunks of work in the past — it's never been plain sailing — hut we're still growing," says Dennis.
Delays and costs
Rates were driven down in the market about three years ago, after they had crept up slightly; they have stagnated ever since — and as a result, margins are "miniscule': Fortunately, Dennis says: "All our customers acknowledged that we would have gone under if we hadn't surcharged for fuel."
The recession is also causing delays at customer sites, where there are no longer enough staff to unload in a timely manner. -Our drivers can wait around for two to six hours at the smaller cold stores and manufacturers, because they are little factories trying to eke out a living," she says.
As well as downtime at depots, the North Yorkshire roads can also slow things down. "We seem to have been snagged in traffic all summer.'llie A64 should he a dual carriageway, and the only routes south are the Ml and the Al, so if one gets blocked then it's a problem. And then there are tourists — the roads are dire," says Dennis.
Costs have also surged. "Commodity prices went through the roof, meaning that tyres, batteries and all spare parts went up hy 30% to 40%," says Slack.
Despite all of these issues and obstacles, the firm still works.
With 35 tractors and 70 trailers. Dennis Distribution is bigger than a lot of firms in the haulage business, yet it still runs like a small firm in terms of flat, hands-on management, and a selection of simple systems.
The firm's transport software was written locally for Dennis, and it divvies up all the management info needed: the accounts are done through Sage software by a book keeper who comes in once a week.
"We've sat down and identified that we have a strong core business, even though it's small," Dennis says. "And we think we have the opportunities and the team to grow." •