DMN Logistics acquires EV logistics specialist JLL Vehicle Distribution

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.”

Business growth at DMN Logistics leads to relocation to larger premises

In anticipation of future growth, it is relocating its staff and business activities to larger premises that will also enable the business to have the capacity to accommodate in excess of 300 vehicles in a secure hardstanding storage environment just off J1 M5 near West Bromwich.

DMN Logistics, a Birmingham-based national vehicle movement and inspection firm, has seen a 25% increase in business over the last year and has strategically diversified its business offering to support the new emerging vehicle logistics, Inspection, and storage environment post covid.

In anticipation of future growth, it is relocating its staff and business activities to larger premises that will also enable the business to have the capacity to accommodate in excess of 300 vehicles in a secure hardstanding storage environment just off J1 M5 near West Bromwich.

Nick Chadaway, Managing Director at DMN Logistics, said: “These are exciting times at DMN. The expansion to larger, more bespoke premises comes as a result of strategic decisions made, and we are now reaping the benefits of business growth and are thrilled to succeed through these adverse times. The new site will enable us to enhance our service provision to include vehicle storage, customer care handover facilities, valet, smart repair, and stock management via our in-house developed MiStorage web portal.

The site will also be the operating base for the recently announced expansion of its transporter fleet following its acquisition of JLL Logistics to support the increase of EV and home deliveries to its fleet, OEM and utility clients.

During lockdown, DMN Logistics took the opportunity to re-examine its operation, free up resources in areas and invest in digitisation and innovation and the business is now reaping the benefits. Looking ahead, DMN Logistics is better placed to support staff, with improved training and greater utilisation of their time to better support customers’ delivery needs.

The recent introduction of integrated AI technology, which provides real-time route planning, driving times, and the ability to pre-empt transport issues, is already providing greater efficiencies in their vehicle delivery service.

Nick added: “Utilising downtime during lockdown to invest in the company and our staff demonstrates our determination to be successful. By being agile, we can offer a one-stop single vehicle or high-capacity logistics and vehicle inspection solution. Additionally, our AI technology is helping us win new contracts as well as ensure compliance with existing clients’ SLAs and data requirements. We are a company that is powered by data and driven by people, and we will continue to support our customers, and our drivers, to ensure their needs are met.”

2023 to be another challenging year but we remain optimistic

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

EV Handovers are vital

Handover is becoming an increasingly vital part of the vehicle delivery process as more fleets adopt electric vehicles (EVs), according to DMN Logistics.

The Birmingham-based national vehicle movement and inspection firm says handover is the driver’s best chance to find out as much information about their new vehicle.

With the increase in online vehicle transactions, many drivers may be less familiar with the actual functionality of vehicles with some only seeing their new car or van for the first time on delivery.

With operational differences and different driving and charging experiences, DMN says vehicle delivery operatives are best placed to inform, educate and offer quick and practical demonstrations during the vehicle handover.

Nick Chadaway, managing director at DMN Logistics said, “When taking delivery of your new EV you should take the time to become accustomed to the new vehicle and use the time with the delivery driver wisely. Our vehicle delivery operatives have had to adapt to new learning systems and therefore are best equipped to advise new car owners on how to drive an EV most efficiently.

“They are in the best position to ask for advice, and we suggest customers utilise their knowledge to gain familiarity and a better understanding of their new vehicle so that they feel more confident making the switch.

“It is vital to gain as much insight into the vehicle before getting on the road.”

DMN Logistics has outlined some key tips for drivers taking delivery of a new vehicle:

  • Before the delivery of your new vehicle, think about questions you have about the car to ask the delivery operatives – they will be able to answer your questions as they drive these vehicles every day.
  • Ask about the basic differences in driving an ICE to an EV, especially slowing down / braking. The answer should help you feel more confident in driving it for the first time.
  • Ask about charging. Delivery operatives can explain the ‘handshake’ between the plug and the car so that you are aware of the correct technique to use to ensure efficient charging and no delays.
  • Ask about any features included in the car to help with driving efficiency. Ask for a demonstration of the technology to gain a better understanding and real-time experience on the software.
  • To help deter range anxiety, ask questions about expected mileage in relation to battery charge levels. The operative will be able to give you a ‘typical’ mileage on a certain percentage of charge. It is also a good idea to ask about eco-mode and how this improves range.

‘Prolonged’ car rental issues increase vehicle delivery times and costs

05 January 2022 – The shortage of new cars has resulted in a 40 per cent rise in the cost of hiring a vehicle and this is impacting the collection and delivery of new and used cars, according to Birmingham-based national vehicle movement and inspection firm DMN Logistics.

The lack of rental vehicles is resulting in extremely limited availability of one-way rental vehicles, which logistics firms like DMN Logistics rely heavily on when transporting vehicles.

The logistical headache caused by an unprecedented shortage of new vehicles is also leading to an increase in costs, which to date are being absorbed by delivery firms but at some point, will have to be passed on to companies and retailers.

Europe’s largest listed rental firm Europcar warned earlier this year that the squeeze on the industry was likely to be ‘prolonged.’

Nick Chadaway, managing director at DMN Logistics, said: “With carmakers prioritising selling to dealerships rather than into the rental sector, which typically buys in bulk, rental firms are left scrambling to find stock to meet the demand to replace older cars.

“Rental companies update their fleets every six months, so they are now struggling to find new cars to replace older stock. They are having to hold onto vehicles longer, which makes them more costly to run and also limits their use, and that is directly affecting the logistics sector.

“One-day hires, even on return-to-originating branch, are becoming harder to source which leads to longer lead times on new car delivery. We are also seeing many rental companies exit the one-way rental business altogether or increase their charge structure, typically by adding anything up to £50 per transaction on top of the daily rental pre-covid charge.

“As a result, we are having to find other ways to transport delivery drivers, like sourcing larger vehicles to carry more drivers and also support social distancing or taking on longer-term hire cars, which is not very cost-effective or environmentally friendly.”

The situation shows no signs of improvement in the short term. Rising costs of vehicle collection and delivery continue as operators work hard to meet demand.

Nick concluded: “Whilst customers are seemingly accepting of the pressures currently within the sector and despite the challenges we are facing and for long term viability, it’s vital that businesses focus on managing their vehicle collection and delivery service and continue to prepare services for a sudden demand once the chip shortage eases.”

About DMN Logistics

DMN Logistics is a provider of UK-wide Vehicle Inspection and Logistics services. DMN’s core market is the Fleet and Remarketing sector and through utilising the latest technology and processes they deliver a digital-led service giving clients total visibility and control of vehicle inspections and time-sensitive movement data. Every aspect of their process can be managed online and through use and integration of data they also offer a white-label solution

Electric Vehicle Logistics : A challenge or an opportunity

The traditional road-driven, single vehicle delivery (trade plate logistics) is a well established sector within the automotive industry. Largely unchanged for a long period, it has in recent years evolved to include data capture at the point of collection and delivery, developing a skilled workforce carrying out in-depth roadside inspections to BVRLA standards, supporting the end of contract return of assets.

With the automotive landscape as a whole undergoing a revolution as electric vehicles become increasingly commonplace, DMN Logistics asks: what’s next for the logistics sector?

Read our latest white paper for more information : DMN – EV Logistics White Paper

Can your dealership support online sales ?

With dealer forecourts set to remain closed for the current time the shift to online sales is increasing. This brings challenges with it, but also opportunity.

Going forward we are likely to see more operating models where the first time a buyer will see the physical vehicle they have purchased is when it arrives on their doorstep. You may even have taken their existing vehicle as a part exchange.  There are ways that technology can be utilised in real-time to help confirm vehicles conditions and manage expectations.

There are some things that will need to be a given : ensure a safe hand over following all social distancing policies, and ensure that all clients are delighted with the product and process. You can track a £5 delivery from Amazon to your doorstep with regular messaging updates in case of changes / delays, this should be an essential part of any vehicle delivery service too.  You need to be happy that the vehicle was delivered to the right place at the right time and have an early view on the condition of any part exchange vehicle that you have agreed.

Here is how we are doing it at DMN :

Collection from your location

  • Have you got a dedicated vehicle handover area ?
  • Are you able to disenfect the vehicle prior to possession being handed over ?
  • Can our driver access the site and facilities safely and not pose any risk to themselves or your team ?
  • Do you have an operational plan on how to access your site for collections and deliveries ?

Social Distancing

  • Your client will receive an email the day prior given them details for their security identifying the driver and an ETA
  • Pre arrival telephone contact on the day by the driver to confirm and update their ETA
  • On arrival driver will contact your client and announce their presence and make any further access arrangements.
  • We will also confirm on site attendance to you via our MiVIS app.
  • The driver will wipe all key touch points including keys with antibacterial wipes and sprays
  • 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 from clients will always be observed

Vehicle Delivery

  • Our driver will confirm the condition of the vehicle at the point of delivery and an email will be sent direct to your client and your sales team from our MiVIS app with all the relevant details and supporting images
  • Our driver will wait while you contact the client (if you so wish) to confirm everything is to their satisfaction.

Part Exchange Process

  • Our driver will complete a full vehicle appraisal on site with the data sent in real-time to your office for review
    • Full supporting images
    • Detail of any damage
    • Confirmation of odometer reading
    • List and images of all documents
  • Once you receive the data, you will be in direct contact with our driver to ask for any additional images or commentary on the vehicle condition
  • Our driver will not leave site until you are completely satisfied and is advised to proceed by your office

Prove of delivery and collection location

  • Your client will not be asked to sign our drivers device due to potential cross contamination off the handheld device
    • MiVIS as geotags enabled so we know where the transactions take place
    • The driver will also image the vehicle in the location to support geotagging data

 

 

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

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

 

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.  

Damage appraisal - DMN Logistics

DMN advises fleets to plug end of contract cost leakage

DMN has advised fleet operators to stop making the same end of contract cost mistakes by implementing simple processes that focus on five key areas.

With a decade of first-hand experience based on tens of thousands of contract-hire and personal leasing defleet inspections and collections, DMN is encouraging fleet operators to implement some simple processes for drivers to cover off the five most common end of contract mistakes:

Spare keys
Drivers typically put the spare key in a ‘safe place’ never to be seen again. Ensure your driver has the spare key ready. A missing spare key can incur a charge from £250 upwards.

Vehicle cleanliness

End-of-life inspections are now being aborted due to the car not being clean. A charge of £45 is commonplace. Ensure that the car is presented in a clean condition.

Updated service book

If the car has a service book ensure this in the car, check the service schedule is up to date and the dealer stamp is in place prior to any inspection.

Tyre inflation kit readiness

Increasing numbers of cars now include a tyre inflation kit rather than a spare wheel. Make sure it is replaced, if used or missing, or face a charge of up to £120 for a full kit including the compressor.

Parcel shelf installation
That weekend adventure or trip to the household waste recycling centre often results in the driver forgetting to refit the parcel shelf. Doing so can cost upwards of £100 on hand-back.

According to DMN, the five leakage points are typical of the unnecessary costs incurred by fleet operators daily – something DMN believes is avoidable with heightened awareness and a little bit of forward planning.

“These five key areas are nothing revolutionary yet continue to plague fleet operators with unnecessary hassle and costly end of contract outlays,” explained Nick Chadaway, managing director of DMN.

“With a little bit of foresight, and some simple processes in place, these leakages can soon be plugged and, ultimately, will save businesses vast sums of money and alleviate individual driver stress.’

DMN is advising fleet operators that one of the first areas to update is the company car driver handbook and highlight the five basic cost leakage points as those requiring ongoing consideration throughout the life of the vehicle.

On top of this, DMN is recommending fleets introduce a pre- end of contract inspection to help control hand-back costs.

“An inspection, about two months out from end of contract gives the fleet operator additional insight as to any potential additional costs but also allows time to make an informed decision on the necessary course of action, and to ensure they have the usual suspects covered off,” explained Nick.

He continued, “With replacement cycles continuing to lengthen, averaging from 37 to 42 months depending on sources, these type of end of lease challenges are only set to get increasingly complex for fleet operators so implementing change now will start to stem the flow for the future.”