Buying bonanza by BRS
Page 15
If you've noticed an error in this article please click here to report it so we can fix it.
• BRS has emerged from its big shake-up (CM 6-12 June) to place a massive order for 550 trucks worth £15m to update its spot rental fleet.
The order, placed with Leyland Daf, MAN and Mercedes, reflects increased confidence in the economy, according to the company.
But the news coincides with the announcement of 300 BRS job cuts following centralisation of the company's management operation in Bedford. Most of the axed jobs are clerical, although many branch managers at the group's 125 depots will also go.
BRS is expecting its new trucks by the end of September. Commercial Services Division managing director Theo de Pencier says he is "heartened" by an increase in demand for rental, notably in the South-East, and for freezer vehicles and tractor units.
He believes rental is an early indicator of the economy and BRS is now "cautiously optimistic", he says: "Demand for spot rental remains higher than many believe."
The new trucks on order are all acquired with buy-back prices guaranteed by the manufacturers. BRS has retained its twoyear buy-back period for vehi
des up to 17 tonnes, but has accepted three years for heavier vehicles.
The BRS re-organisation is set to take 10 months. It is hoped that some of the displaced branch managers will move into new sales positions.
BRS merges with Tanlcfreight and BRS Automotive. On 1 October four new specialist divisions will be created: consumer and retail; industrial; automotive; and — to be renamed — chemical, petroleum and liquid foodstuffs. These divisions will include contracts worth more than £500,000 a year, accounting for more than half of BRS's £500m revenue.
The commercial services division, headed by de Pencier. will concentrate on local transport contracts worth gloom; rental; third-party engineering, and other services.
The new divisions will be served by an operations structure charged with hitting quality and efficiency targets. But responsibility for profits will shift to sales and marketing.
BRS also has plans to increase its warehousing operation which was scaled down when much of the group's warehousing was switched to Exel in the late 1980s.
0 Exel Logistics has renewed a three-year contract to distribute Gateway's frozen food range. The dedicated contract has created 94 new jobs, including a number of drivers.