Tapping into New Markets

The global recession of the past few years and the continuing uncertainty caused by the UK’s faltering return to growth, have changed the way that people buy everything from everyday essentials to big ticket items such as cars. Businesses have had to face up to the new economic realities, not only reviewing their own business practices but also adapting to the new buying habits of their customers.

Just like every other industry and business sector, vehicle re-marketing is changing, with many vendors such as rental and contract hire companies adapting their de-fleeting cycles as a result. At the same time car retailers large and small have been reviewing their stock requirements as the needs and spending power of their own customers have changed.

“The market may well be different now but that doesn’t mean there isn’t a solution that meets the needs of vendors and retailers alike – and that’s where we can help,” explains David Grice, grs Procurement Director. “Because we sell vehicles to a network of 6,500 franchised and independent retailers across the country and understand precisely what their requirements are, we can use this knowledge to find solutions for vendors.

“In other words, we use our up-to-the minute industry expertise and extensive database to find a market for vendors’ vehicles which matches the prevailing market conditions.”

One example of this is the way in which many leasing and hire companies are making their existing stock work harder for them by extending their de-fleet cycle from the traditional six or 12 months to 18 months or more. While this makes good financial sense during the lifecycle of the vehicles, at face value this could present more of a challenge when it comes to disposal. However, grs has been able to identify, and tap into, a growing market for vehicles of this age, as retailers too adapt to the market conditions.

“What retailers are telling us is that many of their own customers’ needs have changed,” says David. “Whereas in the past they may have bought a six or 12-month old vehicle, they’re now looking for one that’s around 18 months old instead. What hasn’t changed is the need for good quality, low or average mileage vehicles, but many people are looking to spend a bit less than they may have done pre-recession.”

Continues David: “Our unique relationship with retailers has enabled us to present this opportunity to vendors, while our Cold Meece logistics centre enables us to store up to 4,500 vehicles at any one time. Combine these two elements together and it means we not only have the capacity but also the appetite to buy vehicles all year round, to ensure a continual supply to our retail customers.”

Spotlight on...the grs logistics team

For busy retailers replenishing their forecourt with new stock, buying vehicles can often be hard enough – without the logistical challenge and additional time required to arrange for them to be shipped to their premises.
“We can take the problem away from retailers, freeing them up to focus on what really matters – running their businesses,” says Andy Bourne, Logistics Co-ordinator at grs. “Our aim is to make buying trade vehicles as easy as possible, and that extends past the actual purchase, to the transportation of the vehicles to their final destination.
“Retailers don’t need the extra hassle of arranging for their vehicles to be moved in addition to everything else,” continues Andy, adding that in addition to efficiency, speed is also of the essence. “Once a vehicle’s been paid for, the retailer needs to get it on site, prepped and on sale as quickly as possible. We understand those pressures and have the know-how, people and equipment to help.”
Aiming to deliver anywhere within mainland Britain within two working days, and within five working days to Northern Ireland is the main objective for both Andy and his colleague Miranda Coombes, and vehicles can either be driven to their destination under trade plates or on transporters, depending on the number of vehicles purchased at one time.
Up to three vehicles tend to be trade plate driven, while a transporter normally becomes the most cost-effective option when four or more have been bought at the same time. grs operates a clear and transparent pricing structure based on the delivery distance, enabling retailers to see exactly how much it will cost.
“On a busy day, it’s not uncommon for up to 40 transporters to arrive at our Cold Meece logistics centre either delivering or loading up and heading off to all parts of the country,” says Andy. “We always plan ahead to ensure that vehicles can be collected as quickly as possible, and it all works like clockwork thanks to the market-leading systems and processes we employ there.”
To help ensure grs is able to deliver on its two working days promise, its trade plate drivers and transporter partners undergo a rigorous selection process. “It’s essential that they sign up to our way of doing things in terms of speed, care and courtesy, since they have an important customer-facing role.”
Once loaded up, the drivers regularly deliver down to the south east, south coast, to the south west and Wales, and as far north as Aberdeen and Ullapool, with the vehicles remaining the responsibility of grs right up to the point of arrival, giving retailers valuable peace of mind.
“Our aim is to make life as easy as possible for retailers, and the logistics side of our business is an important part of that,” concludes Andy.