Rugby reviews 'irrational and inefficient' schedules
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• by Kevin Swallow Rugby Cement has called in logistic experts to sort out its distribution network, which some hauliers say is leading to irrational and inefficient delivery patterns.
Rugby has told its Independent Contract Hauliers (ICHs) that TNT International Logistics Services has been invited to analyse its "current methods of operation and costs". Rugby managing director Stephen Eastwood says this is something that all businesses should do to ensure optimum business performance.
Rugby centralised its planning and shipping operation more than two years ago. The ICHs, which handle 55% of Rugby Cement's haulage, say that although there is enough work, the planning and shipping team is failing to make it profitable. The hauliers claim that the new system, coupled with high fuel costs, means they are wasting valuable driving hours, struggling to make ends meet and "working from hand to mouth".
They add that a 2.4% annual rates rise has not covered increasingly random trips zigzagging across the country, which is forcing up fuel and maintenance costs. To make matters worse, they say, Rugby has frozen its fuel rates and closed its on-site fuel tanks, forcing the ICHs to buy more expensive diesel from Key Fuels.
The ICHs' complaints about planning and shipping issues have been described by Rugby Cement as "of a systematic nature". But the company has warned the ICHs and casual hauliers that decisions on distribution are to be carried out in accordance with the contract and are not open for debate.
In an effort to improve its planning and shipping system Rugby is investing in a computerised scheduling system. However, Eastwood says it's too early to make any definitive comment about the future organisation of its logistics operation.
TNT's review will take up to six weeks and its involvement has fuelled speculation that it will take on the whole distribution operation.
Rugby Cement declined to comment on any problems experienced by ICHs.