Tapping into a new market – commercial vehicles create vantastic opportunity

We've always got a huge selection of vans

The shortage of stock which is driving up car prices is having the same impact in the commercial vehicle market – creating real opportunities for retailers.

Like cars, the focus needs to be on quality, with van buyers increasingly attracted to premium brands such as VW and Mercedes to help set their businesses apart from the crowd, while the likes of air conditioning and electric windows also growing in popularity.

“Good quality commercial vehicles are scarce and profit margins probably higher than they’ve ever been,” says David Fildes, 

grs Commercial Vehicle Specialist.

By sourcing commercial vehicles directly from major fleet operators and hire companies across the UK, grs is able to stock a wide range of makes, models and prices, all of which are available for retailers to view online 24/7.

“In addition to having one or two vans alongside cars on their forecourts, they have access to many more on our website, which can help them find the one that exactly meets the customer’s business needs,” continues David. “And because a van is a work tool, it’s not an emotional purchase in the same way as a car, so people are more likely to make a commitment without sitting in it and driving it first.”

As a result, increasing numbers of retailers are seeing the grs website as their own shop window to help secure sales – a process facilitated by the high quality images and detailed vehicle descriptions. “Across the industry, van descriptions are far less detailed than they are for cars, photography tends to be poor or non-existent, and important documents such as service histories are often missing,” says David. “However, at grs we treat commercial vehicles exactly the same way as cars and never compromise.” What that means is market-leading images of every commercial vehicle inside and out taken on the company’s 360 degree turntable, accompanied by detailed descriptions. And because grs buys direct from major fleets and lease hire companies, the vehicles are normally accompanied by all the important paperwork. “The provenance of commercial vehicles is extremely important to us – and our customers,” he says. “If something is missing we will always try to track it down, as we know it makes a difference to their profit margins – and that’s what really matters.”

According to David, buying vans is no different to cars, with end customers looking for good quality, low mileage vehicles. “Businesses looking to economise by downsizing may move from a Ford Transit to a Vauxhall Vivaro, while those people setting up on their own may well opt for small or mid-sized vehicle – which are also most likely to appeal to retailers who want to place a van on their forecourt alongside cars,” says David. “By diversifying their stock, commercial vehicles are helping retailers to attract new customers by tapping into a market they may not previously have considered. They’re well worth a look this year.”

Putting vendors in control with a smart approach to repair and refurbishment

“We are right at the cutting edge of repair technology,” says Mark Holliday, Technical Services Manager at grs. “We’re continually investing in the latest tools and techniques and are working at the very highest levels.”

As soon as vehicle inspections are completed and the level of work to be undertaken has been agreed with the vendor, Mark’s 50-strong team swings into action, working in two shifts across a total of 16 hours a day. Offering a comprehensive repair and refurbishment service for any make or model of vehicle on-site, the workshop plays a key role in the grs de-fleeting service. Laid out on a production line basis for maximum efficiency, repairs can be completed on up to 50 cars in a single day ensuring vehicles are ready for sale as quickly as possible.

Vehicles are logged into the workshop using a bespoke computer system which ensures the team knows the exact location of each one and how far through the repair process it is at any time. They then make their way through an ‘active grid’ which begins with panel repairs and moves on to preparation, painting, refitting and polishing, culminating with a stringent quality control check.

The workshop team uses the latest technology including the Miracle system which enables larger dents to be repaired without the need to replace whole panels – creating impressive results while at the same time keeping costs as low as possible. Scratches and smaller dents are treated using the revolutionary SMART (Small Medium Area Repair Technique) approach which can also reduce time and costs by focusing on the area that needs to be fixed, rather than repairing a larger surface area.

Yet investing in the latest technology and the most up-to-date techniques is only part of the story – grs also continually invests in training. “As a result, we’re able to take these techniques to an extremely high level,” says Mark. “We surpass our own expectations and those of vendors, who are often astonished by the results.”

Mark goes on to say that his technicians are not motivated by doing a good job – but by doing the best work they possibly can. “They’re continually pushing the boundaries and have a real sense of professional pride. There are very few people able to match the work they do.”

Once repairs have been completed, vehicles are cleaned or can receive a full valet, depending on the vendor’s requirements. With room for 4,500 vehicles on-site they can also be stored or prepared for dispatch on a transporter. “What’s important is that vendors are completely in control, as they decide how much or how little work they want us to do,” concludes Mark. “What’s more, we’re able to achieve top quality results cost-effectively because of the smart way in which we work – which really does represent the best of both worlds.”

An inspector calls – the role of the inspections team in driving vendor value

Adrian Holz

A keen eye for detail and an encyclopaedic knowledge of a wide range of vehicles are both essential attributes for members of the grs inspections team, which plays a key role in ensuring maximum value for every vehicle de-fleeted through Cold Meece. 

Both speed and efficiency are vital components of the process, which begins with vehicles being assigned a unique barcode to track their progress through the site. “As soon as a vehicle arrives at Cold Meece, the clock starts ticking, so there’s no time to waste,” says Adrian Holz, Vehicle Inspections Manager, whose eight-strong team aims to have the process completed in just four hours. “The inspection is an important part of de-fleeting so we never rush, but from the vendor’s perspective the sooner it’s completed the better. Our unique combination of highly trained experts and streamlined processes ensure there’s no delay,” he continues.

A thorough interior and exterior examination is carried out inside a purpose-built inspection tunnel, with any defects such as scratches or dents carefully logged to build a detailed description of each vehicle. The inspectors then recommend the level of refurbishment and repair work required, which will depend on a number of factors including the vehicle’s age and mileage, along with guidelines set by each vendor. “We either work to a pre-agreed set of standards or use our own judgment to assess the amount of work required,” explains Adrian. “We are the vendor’s eyes and only recommend essential work which will add to the value of the vehicle.”

The inspectors also use their in-depth knowledge of vehicle specification to note any other factors which might boost the sale price for vendors, such as the addition of audio systems, sat navs, alloy wheels or run-flat tyres. “Our inspectors are familiar with the manufacturer specification of a wide range of vehicles, though we also have access to reference guides and online resources if we need them,” says Adrian. While the latest systems and processes play an essential role in ensuring quick turnaround times, there’s no substitute for the experience and expertise of the team, according to Adrian Holz.

“They understand cars,” says Adrian. “They know what to look out for and what needs to be done. It’s not about trying to make cars perfect by removing every single scratch or chip – it’s about doing what’s necessary to achieve the best possible price for the owner. “That’s exactly what my team does and I believe they’re the best in the business.”

Efficiency, flexibility and quality – de-fleeting at its best

It’s often said that time is money, a phrase which could have been coined specifically for the motor industry, where the spectre of depreciation follows every vehicle from the moment it first leaves the factory.

“It’s no exaggeration to say that every hour of every day makes a difference to a vehicle’s value, and that’s precisely why we think in terms of hours rather than days when de-fleeting vehicles on behalf of our clients,” says Theo Kortland, Managing Director of grs.

In translating this thinking into action, grs has developed arguably the most efficient and sophisticated de-fleeting operation in the industry, combining cutting-edge technology and processes with the very best people.

Based close to the M6 at Cold Meece in Staffordshire, every aspect of the 36-acre logistics centre has been designed with efficiency in mind, bringing a fresh approach to the traditionally time and labour intensive de-fleeting process. Every aspect can be undertaken on-site – from arrival and inspection through refurbishment and repair to preparation and collection or dispatch.

“Cold Meece has been designed on a production line basis, to make the de-fleeting process as quick and cost-effective for clients as possible. Time really is money and we ensure that neither are wasted!”

In addition to efficiency, flexibility is also important, with vendors able to make use of as many – or as few – services as they need. They can also define the way in which they work with grs. Continues Theo, “The flexibility of our Cold Meece operation puts vendors in the driving seat, as they can specify the precise services they need to meet the needs of their businesses.”

Quality is another given at Cold Meece. Bespoke hand-held technology and computer systems unique to grs ensure the flow of vehicles around the facility, while cutting-edge techniques employed by highly skilled technicians produce stunning results when repairs are required. “Our job is not only to de-fleet vehicles, but also to maximise the value of each one,” says Theo. “By continually investing in the most efficient systems and using the latest SMART repair processes for example, we can not only increase the speed but also reduce the cost of de-fleeting, both of which help to achieve the best return for our clients.”

Its all in the delivery...

While the Cold Meece logistics centre is often described as the jewel in the grs crown, the Staffordshire site is also home to a hidden gem - the company's transport service which ensures vehicles reach retailer forecourts without delay.
"As a company we're focused on making it easy for retailers to buy trade vehicles," says Andy Bourne, Logistics Co-ordinator. "However, that extends beyond the actual purchase to include delivery as well. Once retailers have purchased their vehicles, naturally they want to get them on sale as soon as they can. That's where we come in."
The transport team aims to have delivered vehicles within two working days following receipt of cleared funds to any destination on the UK mainland - from Land's End to John O'Groats.
Three vehicles or fewer tend to be driven under trade plates, while four or more will normally be sent by transporter. The total cost depends on the distance, worked out on a system of 25-mile zones, while the team will provide a bespoke quote for distances of more than 300 miles.
As well as being cost-competitive, the service also takes all the hassle out of the process. "Retailers are busy people and most don't want to collect vehicles themselves, as it takes them away from what really matters - running their businesses," says Andy.
"When we take care of the transport, we really take care of it," he continues. "We take all the stress away and in the unlikely event of any damage occurring to vehicles en-route, we'll take care of that too."
Despite the transport service being an essential 'back office' function, the trade plate and transporter drivers play an important front-of-house role, particularly when handing over vehicle keys. "We choose our drivers very carefully and only work with the best," explains Andy. "They have to be professional, smart and trustworthy as they're important ambassadors for grs."
This view is endorsed by Antony Timmis who runs a fleet of transporters based at Cold Meece. "Any business is based on trust and we've built great relationships with many retailers who rely on us to get their vehicles to them quickly," he says.
"Although it can often take several weeks to receive something you buy on the internet, we aim to get cars and commercial vehicles to retailers across the country within two working days, whatever the weather throws at us. That's something I'm proud of."
For more information on the grs transport service please contact Andy Bourne on  08... Ext 2353.

Cold Meece - the jewel in the grs crown

Located in the heart of the Staffordshire countryside, the Cold Meece logistics centre bristles with the sort of technology that would have impressed the site's former owners, the Ministry of Defence.

Now the jewel in the crown of the grs business, the 36-acre site was formerly home to a wartime ballistics factory. "There was a railway line from Cold Meece directly to Stafford," explains General Manager Steve Beale. "They would make and test ammunition here and then ship it off to the frontline."

Today Cold Meece has an equally important frontline role, giving retailers all the ammunition they need to run their businesses as efficiently as possible. Every aspect has been purpose built to facilitate the smooth and efficient flow of vehicles through the site, which ensures they're ready for sale and delivery to retailers as quickly as possible.

Over the past 10 years grs has made a multi-million pound investment in the centre, at the heart of which sits a bespoke high-tech system which tracks and monitors the progress of every vehicle through the site. Once purchased, it also enables vehicles to be located within minutes, ensuring they are ready for collection or dispatch at a specific time.

While the technology undoubtedly plays an important part in the process, there's more to it than that, according to Steve Beale. "The efficiency of Cold Meece is built around the three Ps - people, planning and process," he explains. "Once vehicles arrive on site it's my responsibility to ensure they're logged in, inspected, cleaned, photographed and made ready for sale.

"The sales team will often pick up the phone and call retailers when there are vehicles coming in that match their buying profile, so it's not uncommon for them to have been sold even before they arrive on site," he continues. "Speed is essential and so everything - and everyone - must work together seamlessly."

As soon as cars and commercial vehicles arrive at Cold Meece they are all logged-in using a hand-held device which allocates each one a unique barcode. The on-site team of around 60 people then swings into action, starting with a thorough inspection.

"We look at every inch of every vehicle for any scuffs or dents, as well as making sure that all the specification is exactly as it should be, from spare keys and log books through to audio systems and spare wheels," continues Steve. "This is an incredibly important part of the process as retailers trust grs to provide high quality vehicles that meet their expectations in every way."

Although Cold Meece regularly receives 100 vehicles or more every day - or even up to 300 on really busy days - they will normally have been logged-in and inspected within just four hours. Those requiring refurbishment work are sent through to the workshop, before being cleaned and then photographed.

Throughout Cold Meece grs employs industry-beating standards of best practice, not least in the photographic suite which features a 360-degree turntable - one of the latest investments in the site. Vehicles are photographed both internally and externally from a number of angles and against a plain background.

Once photographed - and following a final quality control check - the information and images of each car and commercial vehicle are uploaded onto the grs website which retailers can access 24-hours a day. And all this is normally completed within just one day of vehicles arriving on-site.

"The barcode system ensures we know the exact location of each one," says Steve. "The logistics team can then get them ready for dispatch as soon as they've been sold."

As for the latest investment in the site, although it may not be another high-tech addition, it's an important one nonetheless. During the summer the grs sales team relocated from Shrewsbury to new accommodation at Cold Meece to help improve the service provided to retailers still further.

"Having the sales team in the same place as the vehicles makes great sense. If a retailer has a question about a specific vehicle we help the sales team to locate it within minutes and they can actually take a look," says Steve, who is inviting retailers to take a look round the site themselves.

"It's hard to visualise the Cold Meece operation unless you've seen it and retailers are very welcome to come and visit us to see how it all works."

Getting closer to customers: grs creates new field-based sales team

With the continuing shortage of stock making life challenging for retailers across the UK, the importance of buying good quality vehicles has been thrown into even greater focus, along with the need to understand the needs of the local market.

To help retailers achieve both of these business-critical objectives, grs has re-structured its sales team and made a number of new appointments. Moving away from a portfolio-based approach, the country has been divided into five regions, with retailers now benefiting from a two-person team who will work closely with them to maximise every opportunity for profit.

"We're proud of the service we've offered retailers, but we're always looking for ways of doing things differently and better on their behalf," says Sales Manager Dean Richards, who has recently recruited an additional four people, taking the sales team to a total of 10.

"These changes will take our service to a new level completely by offering retailers the best of both worlds - access to office-based as well as field-based experts."

Spending several days a week on the road, the field-based team will be available to meet with retailers, who can tap into their up-to-the-minute knowledge to ensure they have the right stock mix for their forecourts. "Our sales team act as buyers for retailers and will be working in partnership with them to find new opportunities and maximise profits," says Dean. "Rather than doing this remotely over the phone they are now able to meet in person, out on the forecourt."

Continues Dean: "Even in challenging times there are opportunities for retailers, as long as they understand and adapt to changing conditions. For example, families are looking for smaller, greener or more economical cars to keep running costs down, while many experienced trades-people who are striking out on their own are in the market for a good quality van.

"It's this sort of insight that we can offer, as well as helping to ensure retailers have the right makes, models and price range to meet the needs of their customers."

In addition to the right stock mix, the need for quality is greater than ever, according to Dean. "Quality has always been a watchword at grs and that won't change," he says. "We only buy the best quality vehicles, so retailers can rest assured that our standards - and their reputation - will always be maintained."

He adds: "What's more, we always do everything we can to help retailers derive additional value from every vehicle by looking to source items such as log books and spare keys, all at no extra cost."

And not only has the sales team been restructured, they have relocated into new purpose-built accommodation at Cold Meece."As well as getting closer to our customers through the creation of the field sales team, we're also getting closer to our vehicles!" says Dean.

Any retailers interested in visiting Cold Meece can contact Dean Richards on 0844 2255477.