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INDUSTRY SUFFERS GROWING PAINS
Published:  15 September, 2010

Nursery product entrepreneurs in the UK are experiencing difficulties growing their businesses because of restrictions on the size of items parcel carriers are prepared to ship to customers’ homes.

Research by Global Freight Solutions (GFS), has found that many parcel carriers are increasingly refusing to take some bulky items without imposing surcharges.

GFS discovered that the limits are particularly affecting manufacturers and retailers of baby mattresses, cots, prams, ‘ride-on’ toys and flat pack furniture, leaving some struggling to find cost-effective ways of distributing their goods as a result.

GFS’s Head of Commercial Development, Daniel Ennor, claimed the practice also limited consumer choice by restricting the range and quality of delivery service producers are able to offer customers when fulfilling orders and handling returns.

He said it was a consequence of parcel carriers’ desire to improve efficiency. “They want to be able to move large volumes of packages quickly. Larger items can slow the process down.

“It is particularly difficult for smaller firms who make or sell such items to find carriers able to take their goods without complicating their distribution processes and facing prohibitive surcharges because they simply don’t move enough parcels to qualify for discounts associated with bulk shipping.”

Since being formed in 2001, GFS has built up considerable specialty in moving parcels on behalf of some of the biggest brands in the domestic baby products sector, including Mamas and Papas, Babywise and Cheeky Rascals, as well as household names in the leisure, automotive and financial services industries.

GFS clients use a single, simple process to move goods via a combination of the UK’s most well-known carriers, if necessary, to achieve a ‘best fit’ distribution method for their business.

Last month, GFS announced that it had underlined its commitment to the domestic nursery products industry by becoming a partner of the Baby Products Association (BPA).

As well as being entrusted with distribution on behalf of some of the sector’s bigger names, Daniel Ennor said GFS had noticed an increase in enquiries from small and medium-sized firms anxious to overcome limitations which potentially threatened their business prospects.

He said the impact was most keenly felt by those businesses hoping to cash in on the boom in internet retailing.

 “Internet shoppers are discerning and demanding, and will often consider a wide range of retailers online to check prices and specifications. Often they will not then want the hassle of going to a store to pick up bulky items. However, they don’t want to pay through the nose for having them delivered either.

“There are carriers able and willing to move irregularly-sized items but smaller firms might not know which they are and certainly won’t have the relationships that we do based on the total volumes of items we move through them for clients.

“In the last year, we have seen an increase in SMEs in the sector, including start-ups, asking us to help use that weight and that know-how to tailor their distribution processes in order to get around the problem posed by the size restrictions.”







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