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
“
DMN Logistics gains ISO-certified accreditation
/in UncategorizedDMN Logistics has been awarded ISO 9001,14001, 27001 and 45001 accreditation certificates from the British Assessment Bureau, demonstrating competence and integrity within the Group as well as adding additional reassurance to stakeholders and customers.
The British Assessment Bureau offers UKAS-accredited certification and is the only government-backed body for ISO certification in the UK. Accreditation determines the competence and integrity of the organisations offering reassurance that there has been a rigorous testing and certification service.1
Collectively, these certificates represent DMN’s commitment to ensuring their business is environmentally aware, takes a positive and proactive approach to the health and safety of their employees; provides a quality assured service to customers; and is able to securely manage customers information.
Nick Chadaway, managing director at DMN, said: “We are extremely proud of these ISO accreditations. We work tirelessly to ensure we are compliant in every aspect of our business and these certificates highlight our commitment to providing a superior level of service to our customers and staff.
“We took the unusual decision to attain all four accreditations at the same time and that we achieved this will reassure potential and existing customers, and our team, that our approach to business is the right one. We care about our employees and are committed to the health and safety of all our staff.
“We are environmentally aware throughout all of our processes and services, and we have some amazing, secure IT systems in place that manage and protect all of our customers’ data. To back all of this up we have a quality management system in place for all of our processes to ensure our service is always first-class.
“We are constantly preparing for the future, and these accreditations help support that.”
ISO 14001 recognises DMN has environmental management systems in place that allow them to identify, manage, monitor and control environmental processes, validating their green credentials, reducing costs, overheads and wastage and ensuring legislative awareness and compliance.
DMN’s Quality Management System achieved the ISO 9001 accreditation, which shows their ability to implement clear, repeatable processes that help maintain a quality service for their customers every time – improving performance efficiency and productivity to achieve operational excellence.
As a business, a commitment to improving workplace safety for employees led to the ISO 45001 accreditation. This includes factors such as reducing employee injuries, assessing risk and monitoring workplace activities – demonstrating commitment to safety.
The ISO 27001 Information Security Management accreditation recognises DMN’s robust data systems’ ability to securely manage information assets and data such as customer and employee details, financial information and third-party data. Their systems assess information security risks, have robust security controls and processes in place, and embed information security management.
PlaterPal owner heads for new role at DMN
/in Uncategorized3rd August 2023 – Daz Johnson, director and founder of PlaterPal, has been appointed Transport Operations Manager at JLL Vehicle Distribution, which is now part of DMN Group
JLL Vehicle Distribution offers specialist boutique and EV vehicle transporter operations for Norton Way, Inchcape Audi and Autorola as well as other large dealer groups, vehicle brokers and multiple brands. Additionally, they provide home delivery to corporate leasing clients alongside undertaking customer handovers.
In this new role Daz will support DMN Group’s ambitious growth plans as they look to continue to increase its fleet size and will report directly to James Lee, JLL’s managing director.
Additionally, Daz will provide development and support across the driver base including on-going training and upskilling, and delivering enhanced efficiencies by increased fleet utilisation, and selective sub-contracting of overflow volume to support clients’ service level agreements.
Daz commented: “I am looking forward to this new role. Since the purchase by DMN Group, there has been a huge increase in interest in the transporter logistics part of the business and I’m looking forward to converting that interest and growing the client base.
“I have a proven track record of working well with people, leadership and developing good relationships with new contacts whilst maintaining relationships with existing customers – plus, an extensive background in logistics spanning 40 years, and I am delighted to start this new journey.”
James Lee, managing director at JLL Vehicle Distribution added: “We are excited that Daz is joining the team. His experience speaks for itself, he’ll prove invaluable to us as we aim to implement our ambitious growth plans and for that we need the best people for the job. Daz understands the vehicle logistics sector, and has extensive experience in managing people and operations, so he was the obvious choice!”
Nick Chadaway, managing director at DMN Group concluded: “These are exciting times for DMN Group, and we are thrilled to have Daz on board. We acquired JLL to increase opportunities with the aim of further expanding into the vehicle logistics home delivery marketplace, especially with the emerging new entrant OEMs who are looking to expand into the UK. Daz’s expertise and familiarity in this sector, and relationships with both suppliers and providers ensures he is the well placed to help us achieve this.”
DMN Logistics acquires EV logistics specialist JLL Vehicle Distribution
/in UncategorizedDMN 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.”
Business growth at DMN Logistics leads to relocation to larger premises
/in DMN Fleet ServicesIn 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
/in Uncategorized7th 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
/in Electric VehiclesHandover 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:
‘Prolonged’ car rental issues increase vehicle delivery times and costs
/in DMN Logistics05 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
/in DMN LogisticsThe 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 ?
/in DMN LogisticsWith 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
Social Distancing
Vehicle Delivery
Part Exchange Process
Prove of delivery and collection location
Collection & Delivery – Social distancing and safe working – Updated June 2020
/in UncategorizedWe’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.
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