Having honed a reputation and built a physical presence over fifty years as a same day and next day package, parcel and bulky delivery specialist throughout the UK and Ireland, DX is morphing into an integrated pallet freight and third-party logistics operator. CEO Ian Truesdale sat down for an exclusive with Logistics Business’ David Priestman to explain the transformation.
Having been acquired by HIG Capital two years ago, DX Group (formerly listed on the London AIM market) has the resources and new leadership to drive change and growth as it now becomes DX Logistics. Truesdale, who joined last July, forecasts double-digit revenue growth this year to reach the £600m mark. “It’s a good company, with a strong customer base,” he tells me. “We’re profitable, but with the potential to grow – organically, via further acquisitions and by expanding into new vertical markets such as pharmaceuticals, healthcare, defence and temperature-controlled storage and distribution.”
DX has approximately 5300 staff, 2300 vehicles and 105 depots and hubs. Having acquired HBC Logistics in Biggleswade, Bedfordshire, the company has gained pallet freight capacity. Truesdale (pictured, below) expects there to be some consolidation in the British pallet freight networks as there is over-capacity in haulage. His substantial prior experience with Unipart, Kuehne + Nagel, CEVA, Exel and Accenture was what attracted him to HIG to lead this specific challenge.
Physical Presence
The company can now offer integrated logistics services and dedicated solutions. From multi-user DCs to a hybrid of B2C and B2B delivering, direct or via the DX network, a multi-channel approach is being developed. “Many 3PLs don’t have last mile capacity,” Truesdale says. “DX can integrate that into our general suite of services and be a one-stop-shop – end-to-end on the demand side.” This means transporting everything from passports and letters to pallets and bulky items. 93 million items were delivered by the company last year.
Partnerships are another means to broadening the business and its range of expertise. DX has just paired with Rhenus to undertake two-person home delivery of bulky items, white goods and furniture in the UK and Ireland. “There’ll be more of these deals,” Truesdale states. “It was an open conversation with Rhenus, which is a competitor, about what was best for their customers. Instead of withdrawing from this part of the market they chose us.”
Service is key
DX is focused on mid-market SME logistics contract wins, to add to its roster of the likes of B&Q, Viking, H Samuels, Toolstation, Screwfix and Euronics. “We can deliver to both their retail stores, wholesalers and consumers,” Truesdale emphasises.
I asked Truesdale about the company’s ecommerce and fulfilment capabilities. “We’re already 40-50% B2C, so we can call that ecommerce. Some young, independent fulfilment firms have had mixed success. We are identifying which of our customers are already doing ecommerce, or beginning to, or outsourcing it, and we’ll look to win some business there.”
Other challenges have got the CEO’s attention as well, ranging from automation and AI to service performance. I finished by asking Truesdale about the problematic issue of driver recruitment and retention. “Costs have risen,” he tells me. “We’re paying more to retain and to attract (for 7.5t and 18t lorry drivers). We need people in the business that enjoy physical work. We did a staff engagement survey when I arrived as a means of further improving the culture and working environment.” DX is also busy electrifying its commercial vehicle fleet, with HVO already widely used by line-haul trucks.
April will see the launch of an international parcel offering and in May for international freight, especially less-than-truck loads (LTL). These will be time-defined services using international partners – freight forwarders and shippers. Customers will be able to use the DX portal to book and get rates, with DX collecting items from them. Watch this space.
