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.”

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.”

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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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.