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Small just won't do

7th July 2011, Page 3
7th July 2011
Page 3
Page 3, 7th July 2011 — Small just won't do
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Which of the following most accurately describes the problem?

Those of you who have been around for a while might see the creation of Harlequin Logistics as a case of 'been there, done that, got the t-shirt'. Its creator Paul Smith founded Jigsaw Solutions in 2002, and the idea of the consortium has been around for some time, albeit in different guises Ling Alliance and PartnerLink spring immediately to mind so you could be forgiven for rolling your eyes this time.

CMwould argue, however, that the logic behind this attempt is a little bit different than nine years ago: the market has changed. The major 3PLs rule the roost among the very largest UK transport contracts, leaving regional family hauliers who buy and run trucks nothing more than glorified subcontractors unless they run niche fleets like tankers or car transporters.

What entices CM to the launch of Harlequin a business that hasn't even signed its first contract is the promise to revive the fortunes of the regional family haulier.

Pause to think how many hundreds of hauliers have seen their revenues remain static (or fall) during the recession; seen their costs rise because of high fuel prices and been unable to plough investment into the business to expand their fleet.

No one has the cash, nor inclination, for widespread mergers [other than Stobart) to offer to customers the capacities and scale a 3PL can promise. Consortiums are the way to go. Paul Smith finds himself not just launching a new business but, inadvertently, resurrecting the good name of regional family hauliers in the UK. CM wishes him all the best. Christopher Walton

Commercial Motor the official UK journal of the International Truck of the Year and International Van of the Year Awards


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