Speedaway/JRP Couriers - Case Study
Case Study
Getting started
Lyall Cresswell, managing director of Courier Exchange, centre, with Mick Bovington, owner of Norfolk based Speedaway Couriers, left and Jeff Mortimer, owner of JRP Couriers. |
The Courier industry attracts a large number of start-ups. Buy a van, find a few customers and off you go. This stereotypical view of getting started in this vibrant sector of the express industry hides the need of owner-drivers to adopt high quality service levels to survive. How do you convince customers to do business with you, with little infrastructure, only your own marketing, and little back up?
Jeff Mortimer and Mick Bovington are excellent examples of how two owner drivers have built up not only successful operations separately, but also by working together have added value to each others businesses. What brought them together was the Courier Exchange.
Jeff had worked for British Airways for many years but by the end of 2001 found the stress of the job too great. With help and encouragement from his family Jeff bought his first van just twelve months ago - a Nissan Vanette Cargo, suitable for medium-sized jobs. He has now moved up to a Peugeot Boxer to cover all jobs, but keeps his Citroen for small jobs, which also doubles up as the family car.
Having discovered the Courier Exchange on the Internet Jeff, who is based near Heathrow, contacted all the local members of the exchange and started to grow his business. "At first I had to take anything to get going. I could not have started at a more difficult time of the year January - and found myself in London on multi-drop work with 60% small van jobs and 80% large van jobs. One year on the split is nearer 60% large van jobs and 40% small van jobs."
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The Courier Exchange gave Jeff the confidence to develop his own niche 'intercity Service' |
The Courier Exchange gave Jeff the confidence to develop his own niche 'intercity service'. "I enjoy travelling to new places each day," he says "and the Courier Exchange was vital in providing me with back loads. I have a good handle on the revenue I need to earn to remain profitable so I can pick up jobs to meet my targets."
Through the Courier Exchange Jeff has met a number of operators and he feels that even though he works on his own he is 'part of a bigger team'. Jeff also found the chat room a great help when he was setting up as it provided him with excellent advice on such issues as insurance, taxation and the right type of van to buy.
Courier Exchange has helped Mick Bovington, owner of Speedaway Couriers in Norfolk, to find return loads for every outbound job, thereby increasing his business by 25% and reducing empty running by 50%. |
Developing a partnership
Through the Courier Exchange Jeff met up with Norfolk based Mick, who also helped him in his start up phase. Mick had done a number of jobs including builder and minicab driver. But four and half years ago he decided to move away from his native Heathrow area and settle with his family for a 'better quality of life' in Norfolk and become a courier.
To enable him to develop his business in a rural part of the country Mick looked initially to the big national players to give him permanent subcontract work but, more importantly, full-time use of his van. This strategy enabled him to develop a customer base of his own by providing a high quality reliable and flexible service. He now regularly has between 24-40 jobs per week. With some of the traffic back to his native Heathrow roots it seemed a natural extension for Mick to expand into an area he knew well. But, with two areas 150 miles apart, how could he make it work? The old adage - you cannot be in two places at once seemed to apply!
Identifying good people
Using the Courier Exchange Mick was able to identify good people in the Heathrow area whom he knew 'would not let him down'. This was when he met Jeff and found a 'partner' who wanted to succeed and would 'go the extra mile' for Mick's customers.
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Using the Courier Exchange Mick was able to identify good people in the Heathrow area. |
This philosophy has also extended to other couriers throughout the UK who are looking for back loads out of, or who want reliable delivery into, East Anglia. "The Courier Exchange has enabled me to look for return loads for every outbound job and it has helped me maintain service levels with my existing customer base if all my vehicles are full. In the past 100% of my vehicles were coming back to Norfolk empty," says Mick.
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Lyall Cresswell, managing director of Courier Exchange, left, with Jeff Mortimer, owner of JRP Couriers, whose business has expanded since joining the Courier Exchange. time use of his van. |
Increasing business
Mick reckons that Courier Exchange has helped him increase his business by 25% and reduce empty running by 50%. Mick's company Speedaway now operates six vans with dedicated drivers as and when they are needed, providing a flexible resource to meet changing patterns of demand. Many of the drivers have been with Mick now for two to three years. Mick uses the Courier Exchange every day to look for suitable back loads and to contact couriers in other parts of the UK. A heavy user of the chat facility on the site, Mick sees it as a form of self-advertising. "A lot of people around the country know where I am," adds Mick. "They also know my views on many issues that affect our work". Mick has now achieved his ambition of becoming a 'five star accredited' member of the Courier Exchange and sells his business on high quality and service delivery.
Jeff and Mick have now been working together for nearly a year with Jeff taking on all the local Heathrow collections