Wincanton says it has improved the efficiency of Lane Group by 35% since it purchased the company six months ago. The logistics giant reckons it will have a retail turnover of more than £1bn in this financial year. Martin Taylor, managing director, retail, told an investors' meeting last week that previously Lane vehicles were making 13 drops a day but the figure is now up to nearer 18. Taylor said Lane now has a first time delivery rate of 98%. "This is an industry leading figure," he told the meeting.
The business is moving into a new hub in Milton Keynes which will include a call centre and is served by six depots. Efficiency has been increased by using double deck trailers and the operation is buying new 7.5 tonne trucks. Wincanton is also pleased with its purchase of construction haulier RDL Distribution. "It is doing very well and exceeding our expectations," said Gordon Scott, managing director of the industrial sector. He said Wincanton is the only major logistics company involved in the building supply chain. Supply chain skills will be needed to ensure the smooth running of the construction of the Olympic village in London. "Developers do not understand supply chains," Scott added.
Another growth area for the firm is in getting retailers to share vehicles and reduce empty running. "There is a coming together of retailers and manufacturers," said Jeff Anderson, managing director, manufacturing. Wincanton has recently won a Shell Gas contract from DHL. It used to have only 30% of the work. The company has also announced its win of Comet's National Transport Network contract. The three-year deal means Wincanton will handle the transport operations at Bellshill, Corby, Harlow, Skelmersdale and Westbury.
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