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One of the UK’s biggest courier companies has invested more than £1m in 50 new vans, moving away from premium brands towards a more cost-effective solution.
The Logistics Organisation, based in Bishop Stortford in Hertforshire, is in the top 10 suppliers of delivery drivers to both Amazon and FedEx, delivering more than 1.5m parcels in a busy month.
Set up by Keith Page and Andrei Ungurianu in 2015, the company operates in and around the M25, turning over more than £21m last year with between 300 and 550 drivers on its books at any one time.
Organised by transport manager Daniel Truchin, the company It has recently purchased 50 new Fiat Ducato L3H2 Multijet Panel Vans from Vanaways, using Fiat for the first time having previously supplied its drivers with an alternative manufacturer.
Mr Page said the company could no longer justify the costs of the premium brand, saying the gap between the two had closed slightly with regards to both engineering quality and driver features.
“Unless anything changes we’re going to switch over our entire fleet,” he said. “It’s hard to justify using a prestige brand these days – end customers don’t care as long as their parcel arrives on time and drivers find value vans tend to be more economical.
“We’ve spoken with our previous supplier and they’ve said there’s nothing they can do to compete on price with Fiat, so we’ve no choice but to move at this time.”
The Logistics Organisation has been supported with its van supply by Liam Nicholas at Vanaways – a rapidly-growing vehicle dealer based in Bristol.
Vanaways company turnover has risen dramatically in 2023, while staff numbers have risen to 72 and the business is on track to deliver sales on more than 6,000 vehicles in 2024.
Working with a vast network of suppliers across the UK, none of which Vanaways is tied to, the company offers free delivery with a digitalised sales process which enables quick fulfilment of the customer’s fleet needs.
Mr Nicholas said: “Our recent work with The Logistics Organisation is a great example of how manufacturers such as Fiat are offering fleet owners a range of quality but affordable products.
“Everything’s changing – customers are focusing on seeking the best value for money for their fleets. And the way we buy and sell vehicles is changing, too, giving companies like ours the ability to be extremely competitive on pricing while offering fast ordering and delivery.
“It’s great to see that The Logistics Organisation is embracing these changes and that their drivers are set to benefit from the positive and efficient delivery that Vanaways can provide.
“We’re happy to be working with the team and we’ll look forward to continuing our relationship as they replace the current fleet with newer models.”
Mr Page said The Logistics Organisation was carefully planning further growth over coming years but also said the company is focusing on maintaining quality rather than chasing turnover.
“We are always looking to grow organically,” he said, “to ensure that the quality of what we provide customers with remains constant. So this new investment is part of a stabilisation before we move on to our next phase of business development.
“Of course our expenditure is a major element of what determines our profitability, so buying good vans at an appropriate price is really important to us.”
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