Get ready, warns TNT
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• Britain's army of small hauliers must start preparing now for the single European market (SEM) in 1992 — or risk losing business through cabotage to foreign-based operators, particularly the Dutch.
According to Paul Carvell, TNT Contract Distribution division's general manager for sales and marketing, the thousands of small UK operators with one to five vehicles should start talking to their customers to see what their aspirations and plans are for 1992 — and they should also be forging relationships with hauliers on the Continent.
Carvell says: "While there will always be a sector that requires local hauliers, that will come under increasing pressure". He adds that because companies like TNT have already started to develop Continental business links in preparation for the SEM, "the big boys like us are less under threat than smaller hauliers".
Carvell acknowledges that while "it is difficult to buy, you can still forge a relationship with a French or German company, and provided you have a good relationship you have an opportunity for the future.
As acquisition is almost impossible: "If you can't buy, you've got to get into a partnership. You can give them your expertise and get it back from them — 1992 has got to be an opportunity".
TNT Contract Distribution's marketing manager Frank Tunney says: "Even if small hauliers don't link up directly with Continental counterparts they've got to have somebody to do it for them". Tunney warns that the penalty for not thinking about 1992 now could be increased competition through cabotage from foreign operators, which in a liberalised SEM would be permitted to carry out domestic haulage in another community country.
In particular, Tunney cites the Dutch and Danes as the biggest threat to UK operators through cabotage: "They are the merchants of Europe," he warns.
Late last year, TNT Express carried out a survey of large and small distribution companies to see how many were preparing for 1992, (CM 24 November).
Only 14% of firms surveyed with 100 employees or fewer had taken any positive action compared with 42% of medium companies (between 100 and 500 employees) and 62% of big companies (over 500 staff). And only 29% of small companies reported that they planned to change their distribution strategy before 1992.
TNT says the survey highlights the difference in attitudes between large and small operators. "Small firms should not close the door on Europe simply because of their size," says the company.
O TNT's Contract Distribution division is poised to announce a new contract for just-in-time business with a major customer in the Midlands.
Turnover to date for the division is around 2100 million, out of a total TNT turnover of 2300 million — but Carvell believes "we can double the size of that turnover within the next three years — the market potential is there".