Tough times in the carpet industry boost the trend for outsourced distribution

Tough trading conditions in the carpet retail trade are causing manufacturers to look carefully at their distribution networks and many are choosing to outsource deliveries rather than using their own transport fleets. Rising transport costs and depressed carpet sales mean that for many manufacturers running their own transport fleet no longer makes economic sense.

However, the decision to outsource distribution to a third party is not without its dangers and handing over responsibility for the safe and timely delivery of stock is never taken lightly. Carpets need to be stored and handled correctly to avoid damage and specialist equipment and expertise is required to allow them to be loaded and unloaded safely. Keeping track of stock as it travels around the country is vitally important as are the interpersonal skills of the drivers making the delivery who will be in direct contact with the customer.

Transport specialist Rhys Davies Freight Logistics recognised the trend towards outsourcing of carpet distribution back in 2004 and has invested heavily in both equipment and manpower to provide a comprehensive service for the carpet industry. In 2005 a new division, Rhys Davies Carpet Logistics was formed and is now firmly established as the leading player in the carpet distribution business.

One of the country’s leading carpet manufacturers Ryalux switched to outsourcing in 2010 and chose Rhys Davies to take over the distribution of around 600 carpets a day to retailers across the United Kingdom.

Ryalux’s Commercial Director Darren Longden explained the reasoning behind the decision to outsource. “When the recession hit and times got tougher, service began to slip, what had started out as being a benefit to our customers began to feel more like a liability,” he said. “We had a fleet which had a high degree of fixed-cost, but the depressed market led to reducing volumes. The only way we could handle deliveries economically was to reduce the service, maybe from two to one delivery a week to a particular area. This was obviously not a situation the company wished to continue.”

Ryalux and Rhys Davies agreed the contract in October with the aim of improving the delivery service through better frequency and reducing costs. The company also took over the leases on the 15 remaining contract hire vehicles in the Ryalux fleet which removed what would have otherwise been a major headache for the company. Concerns over losing the personal relationships established by Ryalux’s own drivers with the customers proved to be unfounded and the company was surprised how quickly the Rhys Davies guys ‘slotted in’ with no apparent difficulty. This is partly due to the company’s policy of only using its own drivers rather than agency staff and making sure drivers carry out deliveries to the same customers. This is especially important when establishing individual requirements such as preferred delivery times and drop-off points.

When Belgium-based Associated Weavers were faced with having no distribution network in the UK following the liquidation of its delivery company, Rhys Davies was able to provide the perfect solution by offering to store and distribute carpets from its depots throughout the country.

Steve Elliott, Managing Director of Associated Weavers, said, “The quality of the service was the most important thing. It was their experience and expertise in distribution which impressed us. Carpets are not easy to handle when it comes to distribution, so we needed a company who knew what they were doing.”

To keep track of the movement of stock Rhys Davies established a two-way Electronic Data Interchange (EDI) link with Associated Weavers’ office in Belgium. Each carpet is scanned in and out of the warehouse and at the point of delivery, so every movement of stock can be monitored and recorded.

Steve said the tracking system is a great benefit to them. “The IT system saves us time and money. We can easily track our products which saves back and forth telephone conversations about the locations of deliveries.”

With ever increasing fuel prices and other associated transport costs the trend to outsource carpet distribution seems likely to continue. The flexibility and cost savings offered by companies like Rhys Davies will be hard to resist even when the market returns to normal.

‘More than just transport’

Rhys Davies Freight Logistics is a national company headquartered in South Wales with nine depots throughout the United Kingdom. The company has clients across a wide range of industries including chemicals, carpets, building products and food.

Further editorial information from:

David Jordan
The Words Workshop Ltd
26 Swanwick Lane
Milton Keynes
MK10 9LD
Tel: 01908 695500 Fax: 01908 690099
mailto:david@thewordsworkshop.co.uk
http://www.thewordsworkshop.co.uk

All business enquiries to:

Gary Phillips
Rhys Davies Freight Logistics
Moy Road Industrial Estate
Taffs Well
Cardiff
CF15 7QR
Tel: 029 2081 0587 Fax: 029 2081 5109
mailto:gary.phillips@rhysdavies.co.uk
http://www.rhysdavies.co.uk

This release was published on openPR.