CASE STUDY REASON TRANSPORT
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Coventry-based Reason Transport (currently being rebranded from J&J Reason and Sons) found its salvation in the Palletways network five years ago. Initially a general haulier, it had specialised in automotive work but, when Peugeot left Coventry three years ago, the last of the local automotive work went with it.
However, in the price-competitive world of networks, the company still needed a strong differentiator to survive the recession. This it found in its online CRM (customer relationship management) software. Designed by MD Alan Reason's son, who works in the family firm, it offers online booking and reporting.
The CAM system not only gives real-time information, but produces non-trading reports that allow us to see if a customer's pallet numbers are dropping off or rising. I can see the size, frequency and destinations of freight for each customer, which means when I am talking to them I can make it clear that I know the trends in their business as well as they do," says Reason.
The system also allows the company to be proactive in solving any issues or problems often before the customer is even aware of them.
It allows us to add value because we share the reporting function with our customers, so they have easily digestible sales information," says Reason. "I have had customers come to me and say they would like to move to a cheaper competitor, but take our booking and reporting system with them and, of course, we have to say no. It's an investment that offers value, which is why the other guys are cheaper."
Reason believes their high service levels are underlined by their customer loyalty. We haven't lost a customer except through relocation in 18 months," he says. It has 600 trading customers per calendar month. "That's awesome for us," says Reason.
The CAM system is now used by all their clients and 20 Palletways members.
Despite the recession, Reason Transport grew by 32% last year. "Unfortunately, some local haulers failed and, while there's nothing good about that, it did mean we picked up a lot of work," says Reason. "We are expecting similar growth this year."
The long-term strategy is to keep increasing the significance of the pallet network. 'It's currently 50/50 between network and general haulage. But in three years that ratio will probably be 80/20," says Reason. "The network is easy haulage, local and the same thing every day. You just have to do it right."
The Coventry base means it can run its double-deckers into the hub twice a night, and it now also handles north Oxfordshire postcodes.
"The 30-vehicle fleet are all new Scanias, with four 18-tonners just acquired. We have re-concreted the yard, and opened up 30% more space, but in two or three years, we will need a bigger base."
The 25,000ft2 warehouse (with overflow available at Prologis Park) won't be sufficient for long. "The goal is a purpose-built facility suitable for order fulfilment work, which we'd love to do," he says.
Reason Transport is a Platinum member of Palletways, hitting the weekly kPls without fail for three consecutive years. "That's really hard to achieve," he says.