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www.truckandtrack.com Winter 2024/25 Truck and Track 3 CELEBRATING SUCCESS by Barbara Ryan, Publishing Director, Truck and Track This latest issue of Truck and Track focuses on many different examples of success achieved by companies within our industry. High on the list of notable achievers is the United Pallet Network which recently celebrated its 23rd Annual Awards. Taking place once again in the iconic city of Nottingham, I was delighted to receive a pair of tickets for the event which were enjoyed by me and Jilly - a dear friend and a long-standing Truck and Track colleague. Barbara and Jilly enjoying UPN’s 23rd Annual Awards We have included a four-page feature on the event which highlights the 71 UPN members that have achieved Gold Status plus the 58 UPN members who have attained Platinum Status. The event also included fundraising efforts in support of three very worthy causes – St Giles Hospice, the Wildlife Trust and Air Ambulance Northern Ireland. This issue also shines the spotlight on the new Dangerous Goods Regulations which came into effect on 1st January 2025. Our Dangerous Goods Columnist, Ali Karim is busy advising a number of Road Haulage organisations on the main changes in the Agreement concerning the International Carriage of Dangerous Goods by Road (ADR). Also highlighting latest developments, Richard Shreeve, Labeline’s Compliance Manager sets out the requirements for transporting dangerous goods by road and the special changes and updates, including 11 new UN numbers and a host of new special provisions. We’re also pleased to highlight Wolverhampton-based fuel and tank management specialist Merridale Ltd. The company is celebrating yet another record year with increased demand for its high-quality fuel management systems and web-based software – FuelWorks. Merridale also continues to provide software upgrades to many of its existing customers as well as installing record numbers of equipment for new customers. Since we began working on this latest issue of Truck and Track, we learned that John Smith, Chief Executive Officer of GB Railfreight (GBRf), has been made an OBE in the King’s New Year Honours List for services to the rail freight industry. We offer John our heart-felt congratulations for his many years of achievement in an extremely challenging environment. Barbara Ryan CONTENTS Page 4 BUSINESS NEWS 13 VEHICLE WASH SYSTEMS 17 DESCARTES 22 INTERMODAL TRANSPORT SOFTWARE 32 CONTAINER HAULAGE 35 FUEL MANAGEMENT 39 PALLET NETWORKS 47 TRAILERS 53 WORKSHOP EQUIPMENT 56 SAFETY & SECURITY 59 DANGEROUS GOODS 66 PORTS 68 RAILFREIGHT 70 LOGISTICS UK Truck and Track The Haulage & Logistics Buyers Magazine Truck and Track The Haulage & Logistics Buyers Magazine To advertise, contact Barbara Ryan, Publishing Director, Truck & Track Multi Media Limited, via email barbara.ryan@truckandtrack.com Editor: Peter Ager editor@truckandtrack.com 07774 169981 Designed and published by Truck & Track Multi Media Limited Creative Director: Marc Pittaway DISCLAIMER Every care has been taken during the production of this magazine with compiling advertisements, editorial and advertorial. However, Truck & Track Multi Media Limited cannot accept responsibility for material supplied by third parties and excludes all liability either relating to any products and services promoted in this publication or arising from any error, omission or inaccuracy. Nor is Truck & Track Multi Media Limited responsible for the content of external websites. Finally, the views expressed in this magazine are not necessarily the views of its Publishers. Copyright © Truck & Track Multi Media Limited. All rights reserved. TRUCK & TRAILER SOLUTIONS WELCOME TOALLPORTS GROUP allportsgroup.co.uk
Truck and Track Winter 2024/25 www.truckandtrack.com 4 BUSINESS NEWS World Skills UK finalist wins Scania Apprentice of the Year Improver technician and World Skills UK finalist from TruckEast Norwich is victorious, winning the prestigious Scania Apprentice of the Year Award. Toby Hull, who has recently qualified with a distinction from his 3-year HGV technical apprenticeship, was presented with this top accolade at the manufacturer’s annual graduation and awards celebration, held at Silverstone racing circuit. The national awards recognise the highest-achieving apprentices within the network and are run by Scania UK in conjunction with training provider Remit. This year, the final five were carefully selected by Remit and faced several practical and theoretical challenges over two days, designed to test their aptitude, knowledge and skills. Toby said of his win, “The competition was tough and really tested what we’ve learnt so far. It just feels fantastic to win. Since I started my apprenticeship, I had my sights set on winning this award. So, I feel proud knowing what I am capable of and being recognised amongst Scania.” Having made it to the finals last year, Toby was determined to hone his skills. With both a proactive and methodical approach to his work, he used the experience to push himself, understanding the areas where he already excelled, but also where he could improve and learn. This drive, alongside the support from his mentors and team, proved to be the winning formula for Toby to take him to the next level. Group Aftersales Director Martyn Clipston comments, “What a fantastic way to complete your apprenticeship, winning Scania’s apprentice of the year. We’re proud of Toby and how far he’s come since joining us in 2021; his hard work and dedication have paid off. He’s an inspiration for those looking to join our industry and we can’t wait to see his career flourish.” Since receiving his accolade, Toby has competed in the IMI World Skills UK heavy vehicle technology finals, taking on the best that UK has to offer and coming home with the silver medal. This win makes it a hat-trick for TruckEast apprentices, with another prestigious award scooped. Earlier this quarter, recently graduated Louis Rogers received the title ‘East Midlands Rising Star’ at the Department for Education Regional Apprenticeship and Skills Awards, and third-year apprentice Jack Markham won Northampton Logistics Awards ‘Apprentice of the Year’. www.truckeast.co.uk
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www.truckandtrack.com Winter 2024/25 Truck and Track 7 BUSINESS NEWS Louis Rogers named East Midlands rising star at The Regional Apprenticeship and Skills Awards Improver technician, Louis Rogers from TruckEast Northampton has claimed the prestigious accolade of The Lloyds Banking Group ‘Rising Star of the Year’ at the East Midlands, Department for Education (DfE), Regional Apprenticeship and Skills Awards. Now in its 21st year, the awards continue to recognise and celebrate the achievements of exceptional apprentices, employers and champions across each region. Having recently qualified from his 3-year heavy vehicle technician apprenticeship, being crowned regional winner is a true testament to his progress throughout the programme. Louis’ award was in recognition of his impressive progression and the contribution that he has made to TruckEast since joining as an apprentice back in 2021. Thanks to his dedication and development of his technical expertise, Louis has successfully accomplished many things, the most recent to date, achieving Scania’s Customer First Award earlier this year. Reflecting on his achievement, Louis said, “I finished my apprenticeship eight months ago and can honestly say it’s the best thing to date. It has given me the skills and knowledge to progress in my role. But also, the confidence to push myself to be the best I can. I feel very honoured to be a regional winner.” Martyn Clipston, Group Aftersales Director at TruckEast, comments, “Winning the award is a fantastic milestone for Louis and is a great reflection of all that he has achieved with TruckEast so far. Now to be named a finalist in November’s nationals is an outstanding achievement and Louis should be incredibly proud of his success. Louis is a key example of what can be achieved with an apprenticeship programme, and we hope it will inspire others to start on this fantastic career path.” Currently, TruckEast has 25 HGV apprentices progressing on their 3-year programme, and recruitment for their next cohort of apprentices will open shortly. www.truckeast.co.uk Louis Rogers from TruckEast Northampton
Truck and Track Winter 2024/25 www.truckandtrack.com 8 BUSINESS NEWS Westminster Hall Debate MPs call on ministers to help tackle freight crime MPs have urged ministers for more support to tackle freight crime in a Westminster Hall Debate. APPG for Freight and Logistics chair, Rachel Taylor MP, called for a coordinated national strategy to combat the issue, urging greater resources for police, better training and a national awareness campaign. MPs also highlighted the need for more safe and secure lorry parking facilities. Last year, there were 5,370 reported incidents of HGV and cargo crime in the UK which was a 5% increase on the previous year. Since 2020, the direct cost of freight crime has been £306.8 million, with the true value of losses likely being over £1 billion. Rachel Taylor MP said, “Nearly 20% of my constituents work in the freight and logistics sector, so they know better than most how this vital industry is being increasingly targeted by sophisticated and organised criminal gangs. “I called this parliamentary debate to ensure the government knows that tough action is needed, and after their reassuring response today I will continue working closely with them to ensure we crack down on dangerous freight criminals and safeguard this critical industry.” Ashton Cull, RHA Senior Public Affairs manager said, “I’d like to thank Rachel Taylor MP for securing and leading this debate in Parliament. Freight crime is a growing problem in our industry which is putting lorry drivers at increased risk and destroying businesses. “Organised crime gangs see trucks as lucrative and easy targets so it’s vital that industry and parliament continues to work together on tackling the issue. “We need more safe and secure parking for lorry drivers which would help deter gangs from targeting them for their loads and fuel. We’re also calling for new planning reforms to consider the needs of hauliers, and for police to have the resources they need to tackle criminal gangs.” Dan Jarvis MBE, Minister of State for Security, said during the debate that the Government is working with police and industry to improve security and infrastructure. The APPG for Freight and Logistics released their Securing Our Supply Chains report last month on tackling freight crime: https://www.rha.uk.net/ HaulTech boosts efficiency for S R Harradine Switching from pen and paper planning to a transport management system is bringing significant benefits to a family-run haulage firm. Based on the outskirts of Cambridge, S R Harradine is a bulk haulage company specialising in aggregates and muck away. Steve Harradine started in 2000 with just one tipper; today the company operates 30 vehicles and has around 40 staff, including Steve’s wife Joan and their sons Bryn and Rick. “It has definitely helped us to become more efficient,” said Bryn Harradine, operations and transport manager. “It enabled us to grow and have better access to important information - as when I was writing it all in a book only one person could see it or use it at any given time. Now multiple people can get involved, inputting jobs or providing customers with ETAs for deliveries.” S R Harradine moves up to 5,000 tonnes of materials per day in its aggregates and muck away operations. “It has enabled us to grow exponentially and take on more staff,” added Bryn. “We now have five people using HaulTech – two in the transport team and three in the office. HaulTech has also streamlined the way we communicate with the drivers. Previously, I had to text them their work individually, which took up a large portion of my day. Now, the system automatically updates the drivers, and they can all crack on with their days.” A relative recommended HaulTech after the company they worked for successfully installed the system. “At first it was quite daunting as I am not a tech expert,” said Bryn. “But HaulTech sent out a training manager who walked me through the system. Once I’d used it a few times, it became second nature and there’s no way I’d go back to pen and paper now. “HaulTech is like a one-stop shop for us. We use it for everything from adding jobs onto the system through to electronic proof of delivery and invoicing. One of the things we really like is that we can add on more functionality as the business grows. So, when we are ready to go to the next level, HaulTech can help us. “HaulTech has been a game-changer for our company. I would recommend it and, in fact, I already have. Some people from other transport companies asked me and I have told them that if it works for us, it will work for them as well.” www.haultech.co.uk TRUCK & TRAILER SOLUTIONS WELCOME TOALLPORTS GROUP allportsgroup.co.uk
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Truck and Track Winter 2024/25 www.truckandtrack.com 10 BUSINESS NEWS Scotland – RHA welcomes speed limit consultation The RHA has welcomed the Scottish Government’s announcement that there will be a consultation on the National Speed Management Review. Part of the consultation invites feedback on whether the current 40 mph speed limit for Heavy Goods Vehicles (HGVs) on Scottish single-carriageway roads should be increased to 50 mph, as it is throughout the rest of Britain. The RHA has campaigned for this change for many years, most recently during this month’s National Lorry Week, when it highlighted the success of the ongoing 50 mph trial on the A9, together with the evidence of benefits in England and Wales, which moved to a 50 mph limit in 2015. The RHA believes there would be three main benefits of a 50 mph limit for HGVs in Scotland: a reduction in risky overtaking by other drivers, reduced emissions as a result of more efficient fuel consumption and economic benefits derived from faster journeys. Martin Reid, RHA Policy Director for Scotland, Wales and Northern Ireland said: “The Scottish Government should be commended for consulting on the change to HGV speed limits. The 50 mph trial on the A9 has resulted in a reduction in risky overtaking with a resultant improvement in safety, backed up by a decade of data from roads in England and Wales. “The extension of a 50 mph limit across all Scottish singlecarriageway A-roads should be expected to yield similar results.“We also know that lorries use less fuel and create fewer emissions when they can drive at 50 mph, and shorter journeys create savings which can be passed on to customers. “Having HGVs driving at up to 50 mph would be a positive step, and we welcome the Scottish Government’s commitment to this consultation.” Road Safety Manager at IAM Roadsmart, Stewart Mackie said, “As an organisation that champions safer roads in the UK, IAM Roadsmart believes that government policy should reflect the evidence. The report on England and Wales’ move to allow Heavy Goods Vehicles to drive at up to 50 mph on “A” roads concludes that the change from 40 mph has not had a detrimental impact on safety along single carriageway roads. Analysis of the three year trial done on the A9 suggests that the move to a 50 mph limit for Heavy Goods Vehicles on single carriageway stretches has actually reduced collisions, fatalities and casualties from incidents involving HGVs.” HaulTech helps power growth at high Velocity Investing in a transport management system (TMS) has helped a haulier to rapidly scale up its operations. Velocity Transport Solutions was founded in 2016 in Sunderland. After investing in a TMS from HaulTech in 2020, its fleet has grown fivefold, working across ambient, chilled and frozen goods. “We grew from a handful of HGVs in 2020 to more than 15 today,” said Mike Bones, head of transport at Velocity. “HaulTech has certainly played a part in enabling that growth. The transport planning is very user-friendly.” The company is an offshoot of Velocity Recruitment, which is a leading provider of recruitment services to logistics and other sectors across North-East England. It also offers training such as Driver CPC courses. Designed to meet the needs of independent hauliers, HaulTech’s TMS can reduce administrative processes by up to 80%. It also helps haulage companies to control and cut operational costs. The TMS enables users to seamlessly create, schedule, assign and manage jobs through a single point of data entry. It also streamlines invoicing and can integrate with accounting software such as Sage. HaulTech is Velocity’s first TMS and is bringing multiple benefits to its operations. “We have offices across the region and the accounting department is not in the same building as my transport team,” added Mike. “HaulTech provides us with a central register where we can access all the information we need. “The biggest benefit for us is that it streamlines our invoices. It links in with our accounting software, meaning we can move from proof of delivery to invoicing at the push of a button.” Velocity Transport started out by providing traction units and drivers to major hauliers, after a request from one of its valued clients on the recruitment side. Today, it now also offers general haulage operations through its own fleet of tractors and trailers. The company works for a wide range of clients in sectors such as automotive, waste and food products. “HaulTech have been fantastic, we cannot fault them at all,” said Mike. “They are extremely flexible and responsive to our needs. I would definitely recommend HaulTech – in fact, I have recommended it to another haulier in the North-East and they are now also using the system.” HaulTech offers a complete portfolio of haulage solutions, including TMS, WMS, tracking and vehicle cameras. For further information, visit https://haultech.co.uk/ TRUCK & TRAILER SOLUTIONS WELCOME TOALLPORTS GROUP allportsgroup.co.uk
“Transport software took away our stress and continues to save us time. “ www.haultech.co.uk | 01782 66 22 44 | hello@haultech.co.uk Danny Winters, Transport Manager Truckwright
Truck and Track Winter 2024/25 www.truckandtrack.com 12 BUSINESS NEWS HaulTech helps Aggreg8 to double its output A fast-growing aggregates business says that HaulTech’s specialist bulk haulage software has helped it to rapidly scale up. Aggreg8 was founded in 2021 with a focus on reclaiming aggregates from heavy waste. Its facility in Barnston, Essex, sifts waste to enable reuse of aggregates, bringing circular economy benefits to the construction industry. The company started off using spreadsheets but found it hard to scale up as demand grew. “We were using spreadsheets and paper to start with because that was sufficient for our needs,” said Lauren Fryett, office manager. “However, as the business grew so quickly, we realised that we needed a dedicated system to manage it all. “We have enjoyed very rapid growth and HaulTech has played a key part in that. Using the TMS allowed us to double our output by using our existing resources. We continue to grow and are opening a second facility in Cambridge soon.” HaulTech’s multi award-winning Bulk Haulage Transport Software solutions are, says HaulTech, proven to transform haulage businesses. This dedicated TMS for bulk hauliers enables them to reduce administrative processes by up to 80%, minimise operational costs and manage the entire process from job booking to invoice. Aggreg8 has its own trucks for bulk haulage, but also uses a trusted network of sub-contractors. “At peak periods we can be managing 80 to 100 loads per day,” added Lauren. “HaulTech helps us to manage our sub-contractors and our own vehicles, all from one system.” Haultech enables users to record a job and allocate pricing from rate tables, send the job instructions to the driver and automatically generate and email invoices. “We use it for routing our own vehicles and all our drivers have the HaulTech app,” said Lauren. “This means they receive job information on their devices, which we also use to capture proof of delivery.” Aggreg8 looked at other TMS providers before choosing HaulTech. “We felt that HaulTech was the most straightforward. It really simplifies our processes from job booking, planning and routing through to proof of delivery and invoicing. “Most of my office team are trained on HaulTech. They came out to us to deliver on-site training which we found really valuable. They are also extremely helpful if we have any queries. If we’ve ever had a connectivity issue for example, they always react quickly to solve it.” According to HaulTech, the company’s transport management systems are trusted by over 1500+ users across the UK and Ireland, The HaulTech Bulk Haulage System is designed to improve and enhance a haulier’s existing workflow and processes. This enables them to work in a faster, smarter and easier manner. It is part of HaulTech’s proven portfolio of haulage solutions, including TMS, WMS, tracking and vehicle cameras. For further information, visit https://haultech.co.uk/ GB Railfreight agrees extension with Aggregate Industries GB Railfreight (GBRf) and Aggregate Industries have agreed a four year contract extension to move aggregate materials from source points at Bardon Hill and the Isle of Grain enabling the development of some of the UK’s biggest infrastructure projects. The relationship between GBRf and Aggregate Industries has been forged over the past ten years, with a shared ambition to collaborate, drive growth and provide a best-in-class service. The partnership will see GBRf move in excess of five million tonnes of aggregate materials over the lifetime of the contract. These services will reduce the carbon footprint of the UK’s supply chains, helping the government hit its 2050 net zero obligations with ambitions to increase goods moved by rail freight by 75% by 2050. The benefits of moving goods by rail are well known, with an aggregate service removing up to 100 long-distance HGV moments from our congested roads and at the same time reducing emissions by 76%. In total, across all its aggregate services, GBRf moves over five million tonnes of aggregate and sand, in addition to 600,000 tonnes of cement every year. These materials are critical in supplying the construction industry and helping the Government achieve its target of building 1.5m homes over the next five years. John Smith, Chief Executive Officer – GB Railfreight, said, “I am delighted that Aggregate Industries have committed to extending our partnership. This is a long-standing relationship which we hope will continue for many years, reducing the carbon footprint of moving construction materials essential for building homes across the country in addition to some of the UK’s biggest infrastructure projects.” Simon Blake, General Manager (Rail) - Aggregate Industries, said, “Extending our partnership with GB Railfreight recognises the close working relationship forged between the two companies and the importance of shared goals. We value the professionalism, enthusiasm and innovation demonstrated daily by the staff of GB Railfreight in delivering our services. Together with GB Railfreight, Aggregate Industries are committed to providing excellence in customer service and making sustainable construction a reality.” TRUCK & TRAILER SOLUTIONS WELCOME TOALLPORTS GROUP allportsgroup.co.uk
www.truckandtrack.com Winter 2024/25 Truck and Track 13 VEHICLE WASH SYSTEMS Wilcomatic – the UK’s authorised distributor of the world’s leading gantry wash systems
Truck and Track Winter 2024/25 www.truckandtrack.com 14 Wilcomatic is pleased to be the authorised distributor of high specification Otto Christ commercial vehicle and car wash systems across Great Britain and Northern Ireland. Already featured at last year’s Commercial Vehicle show at the NEC Birmingham, Otto Christ’s latest gantry wash system, the NOVA, has more advanced features compared to the outgoing Magnum and Taurus ranges and maintains the legendary reliability of the German manufacturer. The NOVA rollover gantry system is a truck wash solution with three brushes available in three product variants, the Stripe, the Blade and the Stripe with LED displays. Dependent on the specification, the machine dimensions range from 4.82m to 5.15m high and 4.6m to 4.88m wide. The passage width (vehicle width) is 3.4m and the wash height is up to 5m. The housing features new panelling with optional integrated LED lighting and illuminated driver command. Speed of operation – the NOVA is the fastest of its kind. Large fleets require fast and effective washing technology. The big challenge is performing a complete wash on the front, side, roof and rear surfaces of the vehicle in order to minimise operating costs within a short wash time. To achieve this, the NOVA can be operated in a semi-stationary operation (2.5-minute wash programme) and/or in the overrun wash operation. The innovative roller concept of the NOVA provides the perfect combination of quality and quantity for vehicle washing and is therefore especially recommended for cleaning in shift operations at transport companies, as a powerful commercial vehicle wash unit, or for larger haulage companies to wash their fleets. Wash brushes supplied as standard are polyethylene brushes which are the tried and tested standard. In addition, users may choose POWERBRUSH + AND SENSOFIL+ which provide low abrasion on the vehicle paint. They are available in a variety of colours from black grey to flame red and feature increased brush diameter and optimal immersion depth for better wash performance. Oscillating rotor nozzles ensure the dirtiest chassis zones are covered. The nozzles are available in various heights and additional nozzle units, each with three nozzles, can be added in and activated for the middle and upper areas of the vehicle. JETSTREAM is a high-pressure wash option that can be added to the portal frame for vehicles with challenging geometries VEHICLE WASH SYSTEMS
www.truckandtrack.com Winter 2024/25 Truck and Track 15 such as silo trucks and special vehicles. The JETSTREAM high pressure device is also designed to pre-clean very heavily soiled vehicles such as tipper trucks. Four electro-mechanically oscillating high pressure nozzle units per wash system side, equipped with contra rotating high pressure blast nozzles, spray the vehicle powerfully whilst the wash portal moves. The front and rear wash is performed by the integrated swivel device for the high-pressure nozzle units. The manual pre-cleaning effort required by the pre-wash staff is significantly reduced with the JETSTREAM. The UNDERBODY WASH SYSTEM features a stationary nozzle cane (under floor) to clean the vehicle’s undersides while the vehicle is entering the wash hall without losing time. We offer two variants that can be combined with corresponding rotary pumps. The DISCONTINUOUS LATERAL BRUSH ensures the best wash result without leaving wash shadows. It enables continuous and more effective cleaning under the mirrors, and is available in different wash heights and can therefore be individually adapted to any fleet as required. The additional pair of lateral brushes ensures optimum cleaning without losing flexibility. An ACTIVE FOAM DEVICE ensures comprehensive application of the wash chemicals via active foam nozzles. The chemicals achieve longer adhesion for effective dirt removal. An optional polishing application is also available with separate dosing equipment. AEROPRO HIGH PERFORMANCE DRYER: The outstanding feature of the AEROPRO dryer is that the airflow starts being directed towards the front of the vehicle slanted from above. By pivoting the blower units or air outlets, the air current can be directed towards lateral vehicle sections or roof and rear sections. WATER RECYCLING: Water is precious. That makes it even more important to budget it with extra care. Pure drinking water is often too precious for washing vehicles, which is why it makes sense to use a circulation system to recycle the washing water used. In addition to ecological aspects, legal regulations and economic factors, such as the cost for drinking water and sewage, also play a part in this decision. FONTIS water preparation units have been developed especially for use with vehicle washing plants. In their compact form, they combine all the technology including the washing water storage tank, a quartz-gravel filter and a booster pump. The FONTIS can be equipped with an optional chemical pre-treatment stage (flocculation). Find out more about Wilcomatic’s comprehensive vehicle wash systems: www.wilcomatic.co.uk or send an email to sales@wilcomatic.co.uk ! ! ! %&%+ )', (*)% " ! ! VEHICLE WASH SYSTEMS
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www.truckandtrack.com Winter 2024/25 Truck and Track 17 DESCARTES™ Descartes Systems Group, the global leader in uniting logisticsintensive businesses in commerce, released findings from its 2024 Supply Chain Intelligence Report: Escalating Challenges for Global Supply Chain Leaders survey, which examined the most significant global trade challenges facing logistics and supply chain leaders today. The study showed that 48% of respondents identified rising tariffs and trade barriers as their top concern, closely followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing. These challenges and others (see Figure 1) highlight the need among organisations involved in international trade to sharpen their supply chain analytics practices to help build more resilient supply chain networks, including having robust, technologyenabled insights to keep pace with frequent and complex tariff updates, quickly find new markets, secure better sources of supply and acquire timely and high quality competitive intelligence. Results also showed that the impact of top global trade challenges on organisations can potentially vary by factors other than company size, including business growth, country and industry. For example, tariffs and trade barriers were more concerning for companies expecting greater than 15% growth (51%) than for those companies with shrinking/limited to no growth (43%). “Evolving tariffs and trade policies are one of a number of complex issues requiring organisations to build more resilience into their supply chains through compliance, technology and strategic planning,” said Jackson Wood, Director, Industry Strategy at Descartes. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.” Descartes and SAPIO Research surveyed 978 supply chain intelligence leaders in key trading nations across Europe, North and South America, and Asia-Pacific. The goal was to understand the nature of the global trade challenges they were facing and to identify if concerns varied by factors such as country, industry, company size and business growth. Respondents are members of company leadership teams, from management level to Chief Executive Officer or Owner. To learn more, read the 2024 Supply Chain Intelligence Report: Escalating Challenges for Global Supply Chain Leaders report. Learn more about Descartes’ global trade intelligence solutions at www.descartes.com About Descartes Descartes is the global leader in providing on-demand, softwareas-a-service solutions focused on improving the productivity, security and sustainability of logistics-intensive businesses. Customers use our modular, software-as-a-service solutions to route, track and help improve the safety, performance and compliance of delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; access global trade data; file customs and security documents for imports and exports; and complete numerous other logistics processes by participating in the world’s largest, collaborative multimodal logistics community. Our headquarters are in Waterloo, Ontario, Canada and we have offices and partners around the world. www.descartes.com Descartes’ Study Reveals Tariffs and Trade Barriers as Top Concern of 48% of Supply Chain Leaders Figure 1: Respondents’ top challenges in international trade operations Source: Descartes/SAPIO Jackson Wood, Director, Industry Strategy at Descartes
Truck and Track Winter 2024/25 www.truckandtrack.com 18 DESCARTES™ Peak season 2023 was challenging for UK retailers. Cost of living concerns dented consumer confidence, whilst global supply chain problems led to delays and cost increases for retailers. While these issues lie outside the control of any business, continued inefficiency in last mile delivery undermined both customer experience and profitability. According to the latest Home Delivery Consumer Sentiment Study 2024, two thirds (67%) of consumers experienced a problem with a delivery in the three month period surveyed. With 63% of those consumers responding by taking some form of action against the retailer or delivery company, or both, how are retailers gearing up for peak season 2024? Supply chain and economic uncertainty is inevitable, affecting not only customer experience and profit margins but also key strategic objectives such as environmental commitments. The onus is on retailers to control the controllables and eradicate uncertainty from the consumer fulfilment process, especially at peak season, explains Andrew Tavener, Head of Marketing, Descartes. No Second Chances As the third largest market for eCommerce, UK retailers should be leading the way with highly efficient fulfilment processes and an optimised consumer experience. With an expected increase of 7.3% in 2024, the market continues to boom and ecommerce increasingly dominates retail revenue. Yet the last mile fulfilment processes continue to disappoint, especially with the timeliness of delivery: 22% of consumers report a delivery came much later than promised and 21% at a different time. Ensuring a consistent, timely delivery experience becomes even more difficult during times of peaks in demand. Adding resources to manage the peaks is expensive and will rapidly eradicate margin during times of low utilisation. Alternatively, companies can opt to resource for the normal or average run rate and try to buy-in delivery capacity for managing peaks. Yet with workforce shortages affecting three quarters (74%) of companies, over-resourcing or scaling up on demand is easier said than done. Furthermore, when customers’ perceptions are seriously influenced by the quality of the delivery, can retailers really afford to rely on third-party temporary resources, especially given the significant contribution to revenue provided by peak season sales? The majority (63%) of those experiencing a delivery problem respond by taking an action that has an impact on both reputation and bottom line: almost a quarter (23%) of consumers say they lost trust in the delivery company and 19% would not order from that retailer again. There is no second chance: when two thirds of customers are regularly experiencing a delivery problem, and one fifth are lost to the business, the cost of fulfilment uncertainty is extremely significant. Levelling Out Demand Retailers cannot afford to make delivery promises they cannot meet – and that challenge becomes even more telling at peak season. How much does it cost the retailer when a discounted Black Friday offer is delivered to the wrong address or damaged? What are the implications for the bottom line when Christmas orders finally arrive in January and are immediately returned? Taking the Uncertainty out of Peak Season Andrew Tavener, Head of Marketing, Descartes
www.truckandtrack.com Winter 2024/25 Truck and Track 19 DESCARTES™ The good news for retailers is that speed of delivery is becoming less important year on year: far fewer customers are prepared to pay for fast delivery, preferring a lower cost alternative. Many customers also prioritise a precise delivery window over next day options, wanting the certainty of a delivery that arrives when they are at home. There is also more interest in environmentally friendly options, especially within younger generations. Retailers can leverage these delivery personas to flatten out demand and improve fulfilment certainty. Price conscious consumers don’t need an expensive next day delivery option, so don’t offer it. Environmentally aware individuals will respond well to delivery choices that include “green slots” where deliveries are consolidated in a specific area to reduce miles travelled. Embedding Predictability Retailers can influence buyer behaviour by offering achievable delivery options at the Point of Sale, including dates several weeks in advance, based on real-time insight into existing commitments and delivery resources. Continually monitoring the capacity planning process, with in-bound orders constantly assessed to present consumers with a range of delivery options and prices that accurately reflect the retailer’s capacity and cost model imposes far more certainty over the entire last mile process. With a view of the total demand and resources available across all geographic areas, a retailer can become far more sophisticated about maximising capacity and sharing resources across defined geographic regions. Adopting this approach has enabled John Lewis to increase delivery capacity by 35% without adding vehicles or drivers, and reduced fulfilment costs by £1.8 million. More efficient distribution also enables retailers to advance sustainability objectives by default through reduced mileage. Furthermore, the ability to nudge customers towards ‘green’ delivery slots that maximise delivery density and reduce costs allows a business to reinforce Environmental Social and Governance (ESG) goals. Boosting Confidence Online spending will continue to grow, but a sophisticated customer base has high expectations. They want to feel confident at every step in the ecommerce transaction, especially fulfilment. By flattening out demand and eradicating false promises, intelligence led capacity management reduces the risk of delivery problems, reinforcing the quality and consistency of customer experience. Building on this improved experience, retailers and delivery companies can avoid further consumer anxiety through improved communication at every touch point. Advance notice of the delivery window is a given, but the addition of on-going updates throughout the process will minimise the risk of missed deliveries whilst also reinforcing customer confidence. Problems happen – but keeping customers up to date in the event of accident, traffic or breakdowns will foster a far better relationship than leaving people in the dark about why delivery promises have been missed. It’s also important to add in the strong chain of custody, especially for the more expensive goods that are often purchased during peak season. Proof of delivery, including picture and signature capture, is now a core component of a good delivery experience for high value items, and increasingly key to boosting customer confidence. Conclusion There are many aspects of retail operations that are outside the business’ control. Supply chain disruptions can be caused by geopolitical change, weather events, even the widespread shortage of mariners. Inflation and interest rates affect not only operational costs but customer behaviour. There are, however, significant improvements that can be made to eradicate fulfilment uncertainty and transform customer confidence. Embedding real-time capacity planning in the ecommerce model allows retailers to eradicate uneconomic delivery slots, protecting margins. Offering only achievable, affordable delivery options based on in depth capacity information boosts delivery performance and minimise the chances of problems that can undermine customer perception, even lead to customer loss. And by mapping customer delivery personas into the delivery choices provided, with notifications of progress throughout the entire delivery process can proactively enhance customer perception. In an uncertain world, it’s time for retailers to add essential predictability to the ecommerce retail model. https://routinguk.descartes.com
Truck and Track Winter 2024/25 www.truckandtrack.com 20 DESCARTES™ Consumers’ commitment to sustainability has been undermined by financial concerns. According to Descartes’ third annual 2024 Home Delivery Sustainability Report, nearly 90% of consumers’ sustainable home delivery choices are impacted by economic pressure. Yet sustainable business models are increasingly key to successful long-term performance. Retailers and delivery companies face regulatory Net Zero targets, as well as expectations from stakeholders to reduce carbon emissions. Consumers, especially the younger generation, increasingly make purchasing decisions based on a company’s environmental reputation. So why are customers being asked to choose between low cost and sustainable options? There is no longer any need for cost versus sustainable compromise. An efficient, effective delivery operation minimises miles, saving fuel and cutting emissions whilst also reducing costs and delivering a better customer experience. What’s good for the business is also great for the environment, insists Andrew Tavener, Head of Marketing, Descartes. Customer Compromise Sustainability matters to consumers, with 99% either doing or open to doing more to reduce their environmental footprint. However, the vast majority still perceive the cost of sustainability is too high and believe they cannot afford to take the sustainable route due to on-going economic pressures. In the 2024 Home Delivery Sustainability survey, while 57% of respondents were quite/very interested in sustainable home delivery services, 89% felt their willingness to pay more for sustainable delivery was impacted by the current economic environment. Moreover, 34% indicated economic pressures had significantly/drastically impacted this motivation. Retailers and delivery companies cannot afford to let customers’ economic woes derail environmental strategies. Aside from Net Zero targets and stakeholder expectations, organisations are also experiencing growing consumer scrutiny. Individuals may not be wiling to pay for a green delivery but that doesn’t stop them calling out companies with a bad environmental reputation on social media, especially the younger generation. The speed with which retailers can entice consumers towards ‘green’ delivery slots will play a key role in achieving environmental goals. But that can only be achieved with a different approach and a shift away from cost versus green thinking. Efficient fleet operations leveraging intelligence route optimisation to improve delivery density will reduce the number of miles driven. As a CO2 and fuel savings calculator reveals this not only significantly cuts fuel costs but also minimises Scope 1 CO2 emissions, allowing companies to offer customers delivery slots that are both green and lower cost. Changing Mindset The opportunities to transform customer behaviour are clear: 99% of consumers are open to doing more to reduce their environmental impact. Furthermore, retailers can embrace the fact that customers’ delivery expectations have changed in recent years. As the Home Delivery Consumer Sentiment Study 2024 revealed, speed of delivery is no longer the biggest incentive for online purchasers, with customers opting for lowcost delivery over speed. Furthermore, growing numbers of customers also prioritise certainty, opting for a precise delivery window rather than next day options. Retailers now have a compelling chance to boost environmental performance, accelerating the drive to Net Zero whilst also gaining financial benefits and enabling customers to support their environmental goals. An intelligence-driven route optimisation model enables the entire last mile process to be transformed – the challenge is now to present delivery options to customers in a way that meets their needs whilst also enticing behavioural change. Offering low-cost delivery slots many weeks ahead will flatten out demand and avoid expensive, carbon intensive management of peaks. Consolidating deliveries to a specific area to reduce miles travelled or offering free ‘green’ deliveries when a delivery is already booked to a neighbouring address will improve delivery density, reducing costs and emissions. Money off vouchers for customers that consistently opt for green deliveries will influence buyer behaviour and embed new attitudes to online purchasing. Tailored Approach A core component of this change will require an understanding of diverse attitudes across delivery personas. While over a third (38%) of consumers insist they regularly/always make purchase decisions based on the environmental impact of the product or company, there are very clear differences between age groups. More than four fifths (83%) of consumers aged 18-24 and 71% of 25-34-year-olds consider the environment when making a purchase, in contrast to only 43% of consumers aged over 65. Furthermore, over half (56%) of respondents aged 18-34 have reduced online shopping due to environmental concerns, compared to only 26% of those aged over 55. Tailoring the messaging towards difference delivery personas will be key to encouraging consumers towards greener delivery models. For the older generation less concerned about the environment, ensuring the green delivery options are also low cost or free will be essential. In contrast, younger generations will be looking for clear proof that last mile practices are sustainable, requiring more in-depth information about the delivery options. In addition to using free green delivery to achieve behavioural change within older generations almost by default, those organisations able to demonstrate the efficiency and effectiveness of delivery models will build loyal eco-friendly businesses amongst a younger generation increasingly basing purchasing decisions on environmental performance. Conclusion Consumers want to do their bit for the environment, they just don’t want to pay for it. And while the last mile is increasingly being delivered by Electric Vehicles, if customers still perceive green deliveries as the expensive choice, the pace of change will remain slow. Plus, of course, customers are cynical. They are wary of ‘greenwash’ and information about why a particular delivery slot is green will be an importance aspect of behavioural change. It’s time to be proactive. It’s time to stop making the customer choose between cost and the environment. Efficient delivery reduces both the cost of fuel and CO2 emissions, giving retailers a compelling opportunity to entice customers to choose delivery slots that are both green and low cost. https://routinguk.descartes.com Enticing Behavioural Change to Reinforce Consumers’ Sustainable Choices Andrew Tavener, Head of Marketing, Descartes
www.truckandtrack.com Winter 2024/25 Truck and Track 21 DESCARTES™ Descartes Systems Group, the global leader in uniting logistics-intensive businesses in commerce, announced that it has acquired Sellercloud, a leading provider of omnichannel ecommerce solutions. Based in the US, Sellercloud supports small and mid-market retailers, distributors, wholesalers, and manufacturers with multi-channel ecommerce operations. Sellercloud’s Inventory Management Solutions and Order Management Solutions (IMS/OMS) help customers synchronise, plan and manage inventory levels across multiple sales channels. In addition, Sellercloud helps product sellers orchestrate the fulfillment process from routing orders to the right warehouse to enabling warehouse staff to better manage order picking, packing, shipping and returns. “Our integrated ecommerce solutions are designed to help product sellers through all phases of their growth, from a single product startup to a global multi-channel enterprise,” said Mikel Richardson, General Manager of ecommerce at Descartes. “Sellercloud expands our product suite with advanced inventory and order management capabilities that our customers have been asking for. When combined with Descartes’ existing ecommerce shipping, fulfilment and warehouse management solutions, we believe the result is a truly differentiated offering to manage the full lifecycle of domestic and cross-border ecommerce shipments.” “We continue to listen to our customers for key areas of investment in our Global Logistics Network,” said Edward J. Ryan, Descartes’ CEO. “Sellercloud directly complements our ecommerce investments in XPS, ShipRush, pixi, and Peoplevox, and we’re excited to welcome the Sellercloud employees, customers and partners into the Descartes family.” Sellercloud is headquartered in New Jersey. Descartes acquired Sellercloud for up-front consideration of approximately US $110 million satisfied from cash on hand, plus additional potential performance-based consideration. The maximum amount payable under the all-cash performance-based earn-out is US $20 million, based on the combined business achieving revenue-based targets in each of the first two years postacquisition. Any earn-out is expected to be paid in fiscal 2026 and fiscal 2027. www.descartes.com Workforce shortages are affecting three quarters (74%) of logistics companies. With peak season fast approaching, what steps are being taken to avoid customer disappointment asks Andrew Tavener, Head of Marketing, Descartes. Peak Performance Supply chain performance is being undermined by an endemic lack of staff – with 37% of companies experiencing high workforce shortages. The biggest problems are in transportation operations, closely followed by warehouse operations, and the impacts are being felt throughout the supply chain, from financial performance to customer service. Staff shortages cause pressures throughout the year, but the problems are highlighted during peak season. Black Friday only works as a great opportunity to offload discounted stock, for example, if the fulfilment process is super-efficient. Any problems, from inaccurate picking to product damage or delivery errors, will rapidly wipe out any margin on a discounted item. The success of the Christmas buying frenzy depends, obviously, on customers receiving goods promptly– missed or late deliveries will lead to a massive spike in new year returns, refunds and product write-offs. Add in the potential loss of customers following bad experiences and inefficient fulfilment can wipe out the vital revenue boost retailers demand from peak season. Avoiding Mistakes Stressed people inevitably make mistakes – and understaffed warehouses and delivery teams are often under pressure, especially when demand spikes. With no signs of the workforce shortages abating, how are companies looking to improve fulfilment and deliver an optimal peak season customer experience? Scaling up to meet additional demand is becoming harder year on year due to the lack of available staff and so automation has become a priority – 58% of firms say senior management believe technology is key to mitigating the impact of the current workforce market. By prioritising both driver performance and warehouse operations, companies are looking to eradicate the repetitive, time-consuming tasks that deliver little added value and put enormous pressure on staff during peak seasons. Improving driver productivity has an immediate impact on delivery capacity and, as a result, customer experience, with companies exploring innovations in areas such as delivery route optimisation (54%) and driver mobile productivity (45%). Knowledge Workers Companies are not only struggling to recruit and retain warehouse and delivery staff; in fact, knowledge worker and manager positions are the hardest to fill. With 58% of companies confirming that workforce shortages have impacted customer services, they are turning to automation. Tools such as realtime shipment tracking can release knowledge workers from time wasted chasing information to focus on the analysis and planning required to optimise the business. Real-time shipment tracking also meets customer expectations for shipment visibility – and, by providing automated updates, a company can eliminate highly manually-intensive calls and emails and release pressure on customer service teams. Conclusion Improving automation not only reduces the stress for existing employees – and hence cuts the risk of errors that can damage the customer experience – it can also play a vital role in improving recruitment. Workers are not attracted to tedious, repetitive work and highly manual working environments are a serious deterrent, especially for millennial and Gen Z workers. Investing in workforce skills and providing an automated working environment that allows individuals to embrace addedvalue tasks enables organisations to improve recruitment and retention, and create a workforce with the capacity to respond effectively to the demands of peak season. https://routinguk.descartes.com Will Workforce Shortages cause Peak Season Chaos? Mikel Richardson, General Manager of ecommerce at Descartes Descartes Acquires Sellercloud Adds Inventory Management and Order Management Capabilities to Descartes’ Ecommerce Suite
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