Trailer Magazine

Visa Global Logistics

  • Posted on Thursday 12th, July 2018
Visa Global Logistics

In asset-heavy businesses like commercial road transport operations, investing in new vehicles can tie up significant resources, so it is of the utmost importance to choose the right vehicles to ensure adequate finance is maintained. One company that says it has worked out its procurement process is international freight forwarder, VISA Global Logistics.

Though it was financial institution Visa that used the slogan ‘Everywhere you want to be’, the phrase may equally apply to similarly titled business, VISA Global Logistics. Sharing a name and an ideology, though, is where the similarities end. VISA Global Logistics began operations in 1982 as an international freight forwarder and acquired its first truck in 1985. Today, its international freight operations cover 15 countries with container transport operating in Australia & New Zealand.

The last two years in particular have seen substantial growth, explains Managing Director, Simon Hardwidge. The fleet has grown to 130 trucks and 400 trailers in various combinations that carry out the final segment of VISA’s end-to-end supply chain offering. When it comes to vehicle procurement, Simon says he has four hard-and-fast rules he lives by. “For VISA the critical factors are: whole of life cost, technology, after sales support and relationship, with all being equally important,” he says. “We need to be satisfied that a supplier will deliver strongly on all four factors, before we will purchase.”

There are three reasons why VISA will begin the procurement process, he adds, one of which is to replace existing vehicles in the fleet. VISA operates a strict seven-year life cycle on its prime movers, with mirrored seven-year maintenance contracts. The second procurement prompter Simon identifies is changing work characteristics, such as changes to Performance-Based Standards (PBS) access

The third reason is to facilitate business growth, which led VISA to investigate the Scania range of prime movers in October last year. Though the freight forwarder hadn’t purchased the Swedish truck brand before, Simon says Scania ticked his four critical factors. “Scania is a new brand for VISA, with us taking delivery of the first of our current 19 Scania trucks in October 2016,” he says. “We have another 10 on order for delivery over the next three months, mainly a mix of G480 and R560 B-double specification trucks.”

Simon says the four critical factors are more to consider than upfront costs, as the purchase price is only a small part of the whole of life cost of a truck. “It’s important to consider all cost variables when making purchasing decisions,” he says. In this sense, procuring a truck is the easy part. The challenge is to assess the Total Operating Economy and buy a vehicle that provides adequate economical benefits to continue its operation. In line with this, experts agree that it is important to choose a vehicle based on the application and ensuring a vehicle is not over- or under-spec’d.

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