Saved over £7,500 in year one.
Business: Removals and deliveries
Employees: 5 plus 2 working partners
Fleet size: 5
Quicksilver Transport was established in November 2011, with two working business partners and one privately owned 3.5t panel van. In December 2011 they purchased their first 3.5t box van, followed by the purchase of an additional one in April 2012. During the course of 2012 the business grew to the extent that a 7.5t lorry was considered.
The outright purchase of even a second-hand lorry would have stripped the business of its accumulated savings. The vehicle would also be relatively old and therefore more likely to incur regular maintenance/repair costs. To contract hire a lorry was deemed too risky, as the company has no formal contract work, just a regular stream of enquiries through word of mouth and recommendations through forums, along with low profit delivery work. Having to pay for a lorry during quieter months with fewer house moves would not be viable. Flexible hire was the best option and Northgate offered the best version of this in the current marketplace.
As a relatively small company, Quicksilver Transport realised they would benefit greatly from knowing the overheads associated with running the 7.5t.
Quicksilver Transport broke down the process of finding the solution into these two steps:
- Research flexible hire vs contract hire vs a second hand vehicle purchase.
- Research Northgate’s model vs other flexible hire solutions.
Working closely with Northgate, Quicksilver Transport has identified numerous benefits from the partnership:
- Within the first year of using Northgate, Quicksilver Transport estimated saving around £7,500. The option to have a mobile inspection or to have the lorry taken away for servicing saved the company downtime and around half a day’s labour costs.
- Very recently, the lorry has been swapped for two 3.5t Luton box vans, due to a change in the work and staffing numbers. All servicing, from the booking of the vehicles to the full legal compliance is maintained by Northgate.
- Nationwide coverage means any breakdowns are always within proximity to a Northgate workshop.
- The possibility of a replacement vehicle reducing downtime.