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KILLING THE TRANSPORT HASS1
Page 120
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• The distribution boss of north London paper merchant Quaife Paper reickons that he would be "happy not saving money" by switching from owning a truck fleet to contract hire. The hassle avoided by not having to service the trucks and being able to concentrate on core business is worth it alone, says David Coath, referring to his company's switch to contract hire five years ago.
Wembley-based Quaife had run its own, mostly Bedford fleet but in 1984, when it took on a 16-tonner on contract hire from Transfleet to trunk goods from its head office to its six depots around the south of England, it began changing to contract hire as the old trucks needed to be replaced. Although warehousing and distribution director Coath is not sure yet how much he is saving, he is adamant that cost is not the prime concern.
"We're in the paper merchant business," says Coath. "That's where our expertise lies. We haven't expertise in servicing vehicles — we leave that to others." He says moving to outside providers of vehicles makes it easier to budget. "Your costs are known at the start of the year. It helps cash flow predictions. It is impossible to predict when you own a fleet when you will have a major expenditure on repairs. Trucks are a depreciating product; it is better to utilise capital in buildings or stock which appreciates."
• Trunldng work
Quaife now has 18 Transfleet vehicles running out of its Exeter and Wembley depots, 10 from Trimoco at its Luton branch and six BRS trucks at Dartford and Waltham Abbey. It also has four vans on contract hire from Lex and MECV. The rest of its 50-strong fleet is still owned in-house, but three of these are soon to be replaced. One Transfleet 38-tonne artic — with two shift drivers included in the contract — handles trunking work. Quaife also has six 16.5-tonne Mercedes and Leyland Dais; the rest are 7.5-tonne Leyland Dafs, Mercedes and Iveco Fords.
All the truck contract hire deals are for four or five years — the vans are held for two. So far, only the Transfleet contract for the original 16-tonner has run full course, and it has been renewed. The rest of the fleet has an average age of two years.
Coath says three contract hire firms are used because he is not comfortable committing the total fleet to one company. "The ones we choose are more suitably