Can 12000 pallets (standard 4 ways & oversize) a year be shifted to a dozen locations UK, for less than £16 per pallet?
MADBAZ:
Can 12000 pallets (standard 4 ways & oversize) a year be shifted to a dozen locations UK, for less than £16 per pallet?
I reckon you will get 50 pallets on a trailer. £800 a load - 240 loads. I could do that with one double decker 
Without giving too much away, 3 deliveries a week to all drops, Glasgow, M6 corridor, London, M1 corridor, pick up every day. oh and £200 only for a full trailer.
To me it’s tight, but someone’s come in at a very competitive price, in fact too competitive!
MADBAZ:
Without giving too much away, 3 deliveries a week to all drops, Glasgow, M6 corridor, London, M1 corridor, pick up every day. oh and £200 only for a full trailer.To me it’s tight, but someone’s come in at a very competitive price, in fact too competitive!
doesn’t sound like a money earner to me,
Nor me but someone has come in at that price and blown our current haulier out of the water, of course the gaffer has taken a huge liking to it.
MADBAZ:
Nor me but someone has come in at that price and blown our current haulier out of the water, of course the gaffer has taken a huge liking to it.
If they’re offering to do it at a rate that you feel is unprofitable then ask your boss how much he’ll like it when they go bang and leave you in the ■■■ with no way of moving your product and leaving you with upset customers. There is more to haulage than simply going for the cheapest quote.
Paul
Already been mentioned, the haulier we have is fairly reliable, damages are up, but MOST of that is down to other depots shifting stock that they’re supposed to write off, not send back to us and blame the haulier 
.
The trouble is the gaffer is mainly a bean counter (he does have the odd flash of common sense), He’s under huge pressure from Group HQ, a saving he’s estimated to be around £30k pa is gonna make the bean counters higher up the food chain a little happier, for now. It may just save laying someone off.
We’re in the process of handing off a contract customer to another depot (closer but not convenient) and because the recession is biting them (customer) they can’t fulfill their order quota (we use 30 litres of diesel to make at best £30 per day), the forecast net profit for this one customer was £50k pa, which is running atm at a net loss. In order for the customer to return a profit means that a depot which can only supply part of the range of items we do (but profitable), will lose this customer too and that will mean a job loss for that depot.
It’s getting really tough out there.
Whilst things are a bit quiet it’s not the biggest surprise to get offers like this. Will the new cheap option suddenly disappear for more profitable work when it picks up and leave you in the lurch? Just a thought…bean counters… I effin hate them! 
Why don’t you just use both of them then you’re not completely screwed if the new firm makes a hames of it. Give 50% of the work to each or introduce the new firm gradually over a period of time till they prove their worth.
I can’t work out the pricing structures you’re quoting. £16 per pallet makes sense but what’s this £200 for a full trailer only business? £200 to take a full trailer from the Midlands up to Scotland ain’t gonna keep anyone in business. The oversize pallets would be a worry as well.
26 pallets X £16 = £416 per loaded trailer, which sounds alright.
Just tell him to post some loads on back load web sites if he wants to save money.
£30k per annum saving on the transport bill doesn’t sound like a large amount to be honest, you rock the boat, don’t be surprised if it capsizes on you.
The £200 is a mixed load to hub. Maybe the prices given are a foot in the door tactic, I don’t know.
The oversize pallets are a pain in the neck, 600mm wide and up to 2.6m long.
I personally think it’s going to backfire, hopefully I’ll be long gone as there’s no class 1 work within our company. Strange though that other companies in the group do there own distribution. I don’t know all the costings but our IBT work across the co costs around £1.3mill, I’m sure 4 artics trundling around the country could do it for less.
The trouble with our co is that the branches with RDC’s have to account for the IBT side of the business out of the branch budget, so each of them use a different haulier at cheapest cost, there’s no co-ordination. We’ve had truck loads of one product arrive to us the same day we’ve shipped the exact same stuff out to the sending depot 
. At the end of the quarter it gets interesting as some depots ship ‘excess stock’ onto other branches and of course charge it to them, makes the sending branches figures look good for the sales director.