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OPERATORS INSIDE Culina Group ������������������������������������������������p14 DHL �������������������������������������������������������������� p3 DPD �������������������������������������������������������������� p4 Expect Distribution ���������������������������������������� p4 FM Conway ��������������������������������������������������p10 GC Distribution ���������������������������������������������p12 Gregory Distribution �������������������������������������� p3 MKT Logistics ������������������������������������������������ p3 Menzies Distribution �������������������������������������� p4 Stobart ��������������������������������������������������������� p3 Toogood �������������������������������������������������������� p4 Turners (Soham) �������������������������������������������� p3 XPO Logistics ������������������������������������������������ p4
MIND THE GAP: A five-year trial of platooning trucks on UK roads has found that the technology is as safe as trucks running separately and fuel savings could be as much as 4.1% – but only if roads are optimised for platooning. The HelmUK trial was funded by National Highways and the DfT to test the use of advanced driver assistance systems allowing HGVs to safely travel close together to save fuel by slipstreaming. The trial involved three DAF HGVs electronically coupled to maintain a gap of 0.5 to 1 second (11.9m to 23.7m at 53mph). This compares with a gap of 1.4 seconds (33.6m at 53mph) for most standard adaptive cruise control systems and the 2 seconds recommended by the Highway Code. The actual saving seen in the HelmUK trial across all three vehicles was only 0.5%, mainly because the platoon could not be safely maintained through almost half of road junctions. If the platoon could be maintained 85%
of the time, fuel savings should rise to 1.8% and if it was kept together all of the time – which would require junctions to be optimised – savings could be over 4%. Test-track studies have shown potential fuel reductions of 7% for a lead vehicle and 16% for a following vehicle with much smaller gaps between vehicles.
Retailer snaps up logistics supplier in £230m deal to take full control of its own food supply chain
Marks and Spencer buys Gist By Chris Tindall
Marks and Spencer Group has acquired Gist, the principal contract logistics provider to M&S Food, for £230m in a move it said would accelerate its plan to modernise the food supply chain network. The British retailer said it spied substantial opportunities to create a more efficient supply chain and could reduce costs, update legacy systems and improve automation. Gist has worked with M&S for decades, as well as providing logistics services for third parties and freight forwarding work for BOC. In 2009, it signed a major contract with M&S securing all foods operations and since then it has been providing the majority of M&S Food logistics services via its network of eight primary and 10 secondary distribution depots across the UK and Ireland. However, the retailer said the existing arrangement had a higher cost legacy contract that was due to expire in five years’ time and so
this acquisition would provide immediate benefits with the elimination of contractual fees and costs. M&S added that it could now take control of the network, make investments in it and build on the supply chain optimisation programme Vangarde. The deal involves M&S buying Gist’s entire share capital for an initial cash consideration of £145m. A further cash sum of £85m plus interest will be payable from the proceeds of the onward disposal of freehold properties, or at the latest on the third anniversary of completion of the acquisition. It added an additional profit
share from the disposal proceeds of up to £25m would be payable under certain conditions and that if it wished, M&S could retain the freehold properties, in which case £110m plus interest will be payable. Stuart Machin, M&S chief executive, said: “M&S has been tied to a higher cost legacy contract, limiting both our incentive to invest and our growth. “The last two years have shown what can be achieved by working collaboratively alongside our partners at Gist. This has given me confidence that now is the time to take action and remove an impediment to our growth. “We have therefore acted decisively to acquire Gist, taking control of our food supply chain for the first time in our history.” Machin added: “This is the first step in a multi-year plan which will transform the entire supply chain.” Gist generated a pro forma EBITDA of around £55m in the year ending 31 December 2021, with the majority of profit reflect-
ing management fees recharged to M&S under contractual arrangements which will now be eliminated upon the consolidation. The deal was announced as Associated British Foods said it had poached Marks and Spencer Group’s chief financial officer, Eoin Tonge, to be its finance director. He will start no later than February 2023.
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Viewpoint: Platooning trials / IR35 regime p6 Training: Are driver apprenticeships working? p8 Profile: Culina Group looks to grow p14