Menzies Distribution has claimed it is in advanced discussions with major retailers about extending its recently-launched high street logistics service, despite the venture still being in its early stages.
Menzies Logistics Solutions was launched last year to improve the utilisation of its fleet when deliveries of newspapers and magazines have been made. It recently won a £1.5m contract with WH Smith, covering final-mile delivery of items such as DVDs and confectionary into high street stores.
In its interim results last week, parent company John Menzies revealed that it has seen “real signs that further expansion is possible in collaboration with [other retailers]”.
In particular, the company wants to offer consolidation for deliveries into remote areas, where its magazine and newspaper distribution network already delivers into.
Supply chain director Mark Cassie said: “Over the next year, we’re keen to speak to brands and carriers whose potential customers are scared off by the current size of delivery charges and to offer them the benefit of joining our existing routes.”
The company is also increasing its fleet of 7-tonners, but did not disclose the number of vehicles it is currently running.
Transport manager Allan Hughes said: “We have built a fleet focussed on flexibility and efficiency, substantially increasing the number of 7 tonne vehicles which can match up to any task we’re asked to tackle.”
Hughes revealed that it is also working closely with body-builder Tekbo to create a reinforced aluminium chassis for its new trucks, the first of which will be added to the fleet before the end of this year.
The parent company said it has made “good progress” in the rationalisation of its Menzies Distribution network, part of its cost-saving programme. A spokesman revealed it had closed one depot and downgraded four others to ‘spoke’ status, but did not comment on where they were located.
The company is reviewing the network “on an ongoing basis” and expect the reorganisation to be complete by the end of 2015, the spokesman added. It currently has 41 depots across the UK and Ireland with 12 smaller sites in Ireland.
