Norbert Dentressangle (ND) says that it is working to a deadline of the end of 2009 to reach break-even point on the "poorly managed" UK transport division it inherited when it bought Christian Salvesen in late 2007. Hervé Montjotin, executive board member and head of the transport business, says the firm has been working hard to correct problems in the division.
ND implemented a project called Back to Basics in March this year targeting profitability at depot level, which includes improved fleet efficiency and reducing driver turnover. He adds: "It will look at the day-to-day operation and will use all the knowledge and know-how we have in the transport business."
Montjotin says he remains baffled why these simple strategies were not already in place. He adds: "To be honest, this business was poorly managed in the past."
The French firm has already begun remodelling the UK transport network – closing three loss-making depots: Fareham, Pontypool and Bovey Tracey, the last of which will shut in October. However, Montjotin stresses that at present, no further depots are under threat.
Although he acknowledges that ND will be hit by the economic downturn in the second half of this year, he doesn't believe it will cause too many problems overall.
Critics have attacked both the timing of the Salvesen acquisition and the price ND paid, but Montjotin says: "At executive board level, we consider that having Christian Salvesen in the picture just now allows us to be stronger during the [economic] slowdown. Many customers want to be able to work with a robust supplier.
"Good timing or not, it was our timing," he adds. The firm will also make a major investment in the UK transport operation later this year when it takes on around 350 new Renault and Mercedes vehicles. However, Montjotin insists that it is also keen to work with Salvesen's long-standing supplier, Daf, on future vehicle purchases.
