How a family business survives the recession
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Essex parcels and pallets specialist Millbray Contracts is on the charge, expanding its truck fleet and increasing volumes and turnover through partnerships with APC Overnight and Fortec.
Words: Joanna Bourke/ Images: Graham Richardson
YOU COULD DRAW a parallel between the season Tottenham Hotspur is having (so far) and the business model at Hainault. Essex-based Millbray Contracts: striving for its highest finish in years after ■ cars of under-achievement.
Phil Gee. MD of parcels and pallets carrier Milli:II-ay Contracts (also an avid Spurs fan), tells CM his company is immensely proud of its volume growth and the growing respect for its brand name. But. equally, he is happy for the business to expand organically.
Together with his father lbny (Millbray, the firm's chairman), they changed tack and ventured into the parcels market in 1995. Gee explains: "There was a gap for a strong courier in our area and the opportunity arose to join parcel network APC Overnight. What started as two vans dropping 20 deliveries daily in Ilford and Romford has built up to a 14strong van fleet delivering more than 750 consignments a day across Essex and north London."
Like father, like son
With a thriving courier business, the father and son duo saw an opportunity to expand their customer base and in
crease business with existing clients by expanding into the pallet sector. As a result, in 2004 Millbray joined pallet network Fortec. "The decision to join was fuelled by customers looking for a one-stop-shop service. Our parcel customers knew they could rely on us and complained at having to deal with several partners. So it made sense for us to offer them all paperwork and services from under one roof, with one point of contact," Gee says.
He adds:"We felt Fortec had a similar ethos to us. whereby there was a focus on quality rather than pressure to cut rates or handle an unrealistic amount of freight.'llyough this we have developed a strong, yet friendly and trustworthy, relationship."
While opening different business arms is nothing new, it's not always a successful move. However, having its finger in more than one pie has helped Millbray to emerge from the recession in an extremely competitive position. Since December 2009, it says it has seen growth rates similar to those pre-recession. Turnover in March was 30% higher compared with March 2009. and volumes were up 11%.
A variety of factors are attributed to the fu-m's growth. First. Gee cites accuracy rates for first-time deliveries via APC at 99.8%. The company is so confident it can prove reliable for customers, he pledges: "We are fast becoming a preferred carrier for home deliveries as we will make up to three delivery attempts to an address for no extra charge. We will absorb the cost, but customers don't abuse this. and instead repeatedly use us and spread by word of mouth how professional we are."
Investing in partnerships
As a result. Gee claims the firm now delivers vital maps and documents to 30% of the UK's maritime fleet, equating to approximately 300 drops a week.
The firm inputs 1,400 pallets and parcels daily into APC's West Midlands huh and Fortec's Watford Gap facility.
"Our partnerships with APC and Fortec mean we never have to turn away a job or leave clients dissatisfied. With the networks covering such a wide geography, we can guarantee all timecritical deliveries are made on time," he says, adding that he is excited at the prospect of what the Geodis (Fortec's parent) brand name can do for the firm.
"This alliance is helping us to win more customers who want a trusted and reliable partner for international deliveries. We can now offer businesses a much improved service to Ireland."
While keen to praise the benefits of having strong relationships with the networks. Gee emphasises that his Millbray employees have ensured business
has run smoothly and profitably. He singles out his father; wife Kerry. director and head of HR; operations director Jim Saye; and sales director Ian Hardie. "This close-knit team has worked endless hours reminding people that we iic still an individual company with family values, and that we are not on a detached corporate level where we won't speak face-to-face with businesses."
Even Gee is prone to escaping from the hack-room grind to go and occasionally do deliveries at peak times.
-I miss heiug in a truck and this al
lows me to see for myself that we are engaging properly with customers and stress that I am an approachable guy."
Expanding with caution I laying to go out and help with the physical distrihution is testament for Gee how busy operations are.
To cope with this growth, Millbray is taking delivery of three now HGVs to complement its seven-strong lorry fleet. However, the lirm will also continue to use a pool of subcontractors to supplement its own vehicles, Gee conclucles:"Although we are doing well, I want to expand at a natural pace ra t her than investing too quickly and heavily in new sites,because although we can see the green shoots of recovery. we want to proceed cautiously."
With the prospect of Gee's son Frank joining the company in the near future. bringing "real business and IT skills': it is clear to see Millbray has plenty of room for steady growth. •
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