ACQSYS blog

June 2013

Self help aids recovery

Posted 05-06-13, Tags: roll cage cost savings, roll cage recovery, UK economy

The British Chambers of Commerce recently upgraded its long-term growth forecasts for the UK up to the end of 2015. The BCC said it expected output to increase by 0.9% this year, up from a previous growth prediction of 0.6%. It sees gross domestic product (GDP) for 2014 being raised from 1.7% to 1.9%, and for 2015 from 2.2% to 2.4%.[1]

While this is good news, the government and the banks should not be planning to take any credit for it. In particular, the banks should be hanging their heads in shame because the improvement in business performance has not been funded by imaginative lending, but by painful cost cutting and cost avoidance.
 
The companies we deal with have embraced ways to reduce expenditure on non-core but expensive activities so they are able to focus spending on stores, products and services. It’s no coincidence that our new asset recovery business is growing every month, when you consider the scale of the problem of stolen and misused transit equipment and the cost of replacing it. We locate and repossess stolen and abused roll cages, totes, stillages, etc. for about 20% of the cost of replacing them with new. This frees up capital running into millions of pounds for our customers every year. That money can now be spent positively rather than simple replacing what’s been stolen.
 
One unexpected benefit of being in a long period of stagnation is that firms start to become innovative when it’s clear the government hasn’t got a clue and the institutions could care less. Eventually, new methods start to flow through to the bottom line and the trends start to improve, no thanks to the government or the banks.
 
When we started the ACQSYS asset recovery business it was three years after the 2008 crash and we aimed the business squarely at a major problem. Millions of pounds worth of transit equipment disappears every year from supply chains but, no matter how big the company, the cost of putting in place effective recovery programmes is too great. What was needed was a multi-customer consolidated approach, in which the costs would be spread across far greater quantities than any one company could muster.
 
The result is that our customers can redirect valuable capital towards growth generating activities. We have grown and taken on staff and none of us had to waste valuable time listening to a bank business development (?) manager bleating about his lot. Poor thing.

Bill Howie

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Bill Howie is Chief Executive of ACQSYS Supply Chain Solutions Limited, a company that specialises in the management and recovery of mobile and transit assets for manufacturers distributors and retailers

[1] http://www.bbc.co.uk/news/business-22723384  “British Chambers of Commerce raises UK economy forecast".

Some of our clients

“In my opinion the ACQSYS model is absolutely unique in its approach and Bill and Graham have proved many times that they can create and lead successful teams to reach the goals they aim for.”

John Harvey CBE, Chairman Keswick Enterprises Limited

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