Norfolk-based haulier and logistics business Freightforce Distribution is investing in a new fleet of 11 heavy goods vehicles to meet surging demand led by the growth in ecommerce and next-day delivery.
The firm has used a six-figure hire purchase loan from Lloyds Bank to acquire 11 new Mercedes HGV trucks to upgrade its 58-strong fleet based at depots in Norwich and Great Yarmouth. The investment follows a spike in demand over the bank holidays as consumers ordered more deliveries during the time off work. Last year, Freightforce built a new warehouse at its Gt. Yarmouth base to increase storage capacity five-fold. The firm, which has more than 70 drivers and 20 staff, handles an average of 10,000 to 12,000 pallets of goods per week, up from 2,000 pallets a year ago. Managing director Nick Jolley said: “As demand increases, we need to be on top of our game now more than ever and we know we need to invest to make this happen….By acquiring the trucks on hire purchase, rather than on leases, we own the assets at the end of the contract, and they add value and flexibility to our business. This is going to be essential for our growth in the future.”
Separately, fluctuations in demand and volume are creating challenges in the logistics and supply chain management sector as firms face changing customer behaviour, a squeeze on pricing, and increasing customer service levels, according to a poll of industry leaders by BDO and Barclays Corporate Banking. More than half of the respondents said that they intend to focus investment on technology that will drive efficiencies in a bid to support growth.
