DMN Logistics acquires EV logistics specialist JLL Vehicle Distribution

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DMN Logistics has completed the acquisition of JLL Vehicle Distribution, boosting its EV and transported vehicle logistics operation.

Alvechurch-based JLL Vehicle Distribution, established as a father and son business in 2010, offers boutique and EV transport operations for Inchcape, Autorola, Audi as well as other large dealer groups, vehicle brokers and multiple brands. The business also provides delivery, vehicle transfer services and customer handovers to the corporate and dealer sectors.

DMN Logistics initially approached JLL Vehicle Distribution director James Lee to explore collaborative opportunities. Following extensive talks, both parties agreed upon a full acquisition of JLL.

Nick Chadaway, managing director at DMN Logistics, said: “Both our companies specialise in vehicle logistics but the scale we want to achieve in the marketplace cannot be accomplished as quickly as we hope if we are separate entities.”

The deal enables DMN Logistics to leverage increasing opportunities with many of the emerging Chinese and American OEMs, which are seeking expansion into the UK and growth in the vehicle logistics marketplace.

Chadaway continued: “We have ambitious plans to expand in the EV logistics and automotive sectors and this strategic acquisition will help achieve our aims. With the JLL business, we are able to capitalise on the opportunities presented by the new entrants and as EVs become mainstream.” Nick Chadaway DMN

James Lee will remain in the business as managing director and will focus on building relationships, new business development and developing ways to improve operational efficiency.

He commented: “This acquisition benefits both us and DMN Logistics. Our contacts can support their expansion while they are better equipped to support our infrastructure. It’s a win-win for both companies.”

Nick Chadaway added: “It is no secret that we have been more focused on business growth since the pandemic, and this acquisition instantly increases our fleet size. We have already placed orders for more vehicles and further orders planned to increase our ability to offer more EV movements.”

2023 to be another challenging year but we remain optimistic

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7th December 2022 – Recruitment, price hikes, supply shortages and the rise in EV registrations will continue to challenge the vehicle logistics sector but do provide opportunities for growth, according to Birmingham-based national vehicle movement and inspection firm DMN Logistics.

Delivery driver recruitment problems have been a recurring theme throughout 2022 and are likely to remain a challenge in 2023 as drivers continue to be tempted by higher salaries offered by last mileage delivery firms and local driving operators.

Nick Chadaway, managing director at DMN Logistics commented, “Vehicle logistics requires a level of skill and training with a wage that reflects an industry standard. These roles provide longevity and a career, but many defer to the alternative option for instant cash, which is understandable given the state of the rising costs of living but remains detrimental to our sector. DMN is here to provide a career path and not just an immediate job opportunity.”

Rising costs in electricity, gas, fuel, insurance and business rates will force businesses to review internal operations to remain competitive and dynamic in the marketplace. As costs continue to increase, businesses will have to evaluate pricing strategies and review them periodically in an attempt to sustain and maintain their level of service.

Nick said: “It is unfortunate but inevitable that the rising costs we encounter as an industry will be passed on to the customer. Businesses must look at dynamic pricing strategies and review pricing accordingly to not only remain competitive in the marketplace, but also keep afloat.

“At DMN Logistics, if a customer has an agreed fuel inclusive rate, we vary their charging by the week based on what the market is doing, and this may need to be the case with EVs and the cost of the public charging infrastructure. It is a situation we are constantly monitoring to ensure we can fully support the logistics needs of our Customers and continue to say ‘Yes’ to their needs.”

Supply issues continue to affect overall vehicle delivery  volumes, however even with this reduced volume we are seeing capacity issues across the market, driven mainly by the difficult recruitment market and desire for EV movements that are different to the traditional ICE delivery.

An area that had seen previous growth and is a necessary sector of our industry , the  aggregating / transport auction platforms  are, in my opinion, starting to see large reductions in the level of support from the suppliers in the vehicle movement industry. Not only are the suppliers being affected by driver shortages but also a realisation that the low prices being demanded by these platforms are not a sustainable form of business.

Nick added: “Platforms like these are great when logistics supply outweighs demand but when the opposite is true   price-driven platforms must alter their approach to match the market forces.

“Our viewpoint is that price dictates service and although our prices may have to rise in line with rising costs, we offer more to our direct customers. We are specialists in our field and our commitment and reputation within the sector is second-to-none.”

As the 2030 target fast approaches, EV registrations will steadily continue to saturate the marketplace providing an opportunity for logistics companies to offer a different level of service offering. Public charging networks will need to prepare for the impending influx of driven deliveries in order to support the supply chain that is delivering this switchover.

Nick concluded: “Whilst we see many roadblocks ahead, we remain optimistic about 2023 and what we are aiming to achieve. We know that EV registrations will continue to increase and with the arrival of many new players in the EV market there will be growth overall in our sector.  With our expansion into transported deliveries, vehicle storage and pool fleet management we are well placed to prosper in the year to come

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Collection & Delivery – Social distancing and safe working – Updated June 2020

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We’ve introduced the following working instructions to help keep our workforce and clients safe at the point of collection and delivery, we thought it would be good to share them with you.

  • Contact made with the colletion / delivery points to check safety and anyone with symptoms or self-isolating
  • Pre arrival telephone contact by the driver to advise of ETA
  • On arrival driver will contact client and follow any further localised instructions
  • Our driver will wipe touch points with antibacterial wipes
  • Mask and gloves will be worn by the driver and they will have access to hand gel
  • Documents and keys will be handed over without direct touch contact
  • A minimum of 2m distance will always be observed
  • Our driver will identify the condition of the vehicle and an email with the all the relevant details will be sent directly via our MiVIS app
  • The client will not be asked to sign due to potential cross contamination off the handheld device
    • MiVIS has geotags enabled to support delivery/collection point data, we get the exact co-ordinates of where this takes place
    • The driver will also image the vehicle in the location to support geotagging data

You can see our full Driver briefing document here

 

We aim to get the automotive industry moving again but in a safe and responsible manner so if you require support email moves@dmnlogistics.co.uk or call us on 0203 3971981

Single vehicle road driven movements and the challenge of social distancing

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LIke so many others, we are putting the safety of all our team and customers first and this presents us with the challenge of social distancing in an environment that relies on working closely together. What does this mean in practice?

 

Before the start of the COVID-19 pandemic it was a common sight to see maybe 4 or 5 “Trade Plate” drivers using a hire-car or in a minibus to get from previous delivery point to the next collection. This is no longer acceptable or indeed safe.

We have spent a long time working on methods of operation, best practice and technology to support our team and practice safe contact with each other and our Customers. We have created specific work instructions, started to distribute PPE and amend our systems to ensure we can constantly practice and enforce our message as we return to more normal trading. We will need to minimise risk by not using multi occupancy hire cars, taking precautions when on public transport (when it absolutely has to be used !) and following Government advice on vehicle sharing by ensuring maximum distance between driver and any single passenger. These measures will be the same as you will see in many operations across the service industry, and the team will be observing any specific local instructions at collection or delivery points.

 

We want to get the automotive industry moving again but in a safe and responsible manner. We are phasing our operation back in during May so that we can test, assess and refine all of our working practices. If you require support email moves@dmnlogistics.co.uk in the first instance and one of our team will be in touch.  

DMN

Streamlined vehicle inspection services adding £500 per vehicle into the fleet owner supply chain

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A new breed of streamlined vehicle inspection services is estimated to be adding in excess of £500 per vehicle to the fleet owner supply chain according to DMN.

DMN – the vehicle movement people – has calculated that for every fleet vehicle it processes using its new Inspect & Collect service, it could potentially be adding £500 back into the value chain for fleet operators. The value creation stems from a combination of accurate insight, consistent methodologies and real time data management.

End of vehicle lease costs

With end of lease repair costs in the region of £300 per vehicle; delayed vehicle collection costing upwards of £10 per day; and a near £300 premium on vehicles sold at the first time of offering at auction – vehicle inspection and collection services have a vital role to play in stemming leakage from the fleet owner value chain.

‘Time is money when it comes to vehicle asset management,’ explained DMN managing director, Nick Chadaway. ‘We understand that the biggest challenge for fleet owners is the speed it takes to get the vehicle inspected from the end user, collected and then delivered into the auction or remarketing site. This has real cost of anywhere between £10 – £30 a day attached, depending on the type of vehicle, meaning it could be costing businesses anywhere between £300 to £1,000 per month.’

Vehicle damage accurately recorded and processed

Nick continued, ‘The other major challenge is ensuring vehicle damage is accurately recorded and processed, in order that excess costs can be charged to the driver. Typical damage such as a couple of scuffed alloy wheels, and a small dent repair, could cost anywhere in the region of £300 to rectify highlighting just how key accurate and transparent inspections need to be.’

And with 75% of major fleet and leasing company returning stock sold through auction, Nick also points to the National Association of Motor Auctions (NAMA) insight which suggests there is a £289 premium on the value of vehicles sold at the first time of offering, reinforcing the need for accurate, speedy and transparent processes.

True enabler in reducing frictional cost

‘Inspect & Collect is a true enabler in reducing frictional cost within the fleet owner supply chain and helping to streamline what has traditionally been a dysfunctional series of loosely linked events,’ said Nick.

‘The reality is that £500 per vehicle is a modest value to place on a process which is becoming increasingly important for vehicle asset managers as the leasing market continues to grow and competition advances.’

Seamless vehicle inspection and collection

DMN’s Inspect & Collect service, which uses the company’s MIVIS real time automotive solutions App, offers a seamless vehicle inspection and collection solution to fleet operators across the UK. The App allows DMN trained personnel to image any vehicle damage, obtain a signature at the point of inspection and immediately remove a vehicle from the client’s location in one seamless transaction. The service includes a real time, fully configurable damage and charge matrix, and ensures all inspections are date, time stamped and geotagged.