Scully RSV grows alongside core offering

Scully RSV’s operations have always been defined by its commitment to providing quality service and flexibility. The business’ DNA traces back to 1991 when it started out as an after-hours breakdown service provider with a band of dedicated refrigeration technicians that were fixing refrigeration units on rigid bodies night and day all over South East Queensland.

During these early times, Scully RSV was known for its meticulous maintenance and quality aftersales service – a reputation which eventually saw a demand for the outfit to begin making rigid bodies of its own. Scully RSV CEO, Andrew McKenzie, says the team was incredibly nimble and thus needed to be flexible in the face of this demand.

“The Scully RSV were very good at what they did and they still remain so to this day,” he says. “After a period of fixing refrigerated bodies, the next logical step for the business was to start building them.

“That’s exactly what happened. Our customers had become friends, and naturally, they asked us to build bodies. So, we did. And we did it well. The business grew pretty quickly off the back of that.”

Scully RSV went on to become a force to be reckoned with in Australia’s cold chain logistics space, all while remaining sensitive and flexible to market demands and customer concerns. This flexibility notably took the centre stage again in 2014 when the company expanded its capabilities – this time in the form of rental refrigerated trucks. This proved to be an extremely successful move for Scully RSV. According to Andrew, more than 80 per cent of the business’ resources are now allocated towards its rental operations.

Additionally, strong reception from customers has led Scully RSV to expand into other markets in order to effectively meet demand, both in geography and value proposition.

“Our customers’ demands have taken us to new markets over the years,” Andrew explains. “They took us to Perth and Adelaide and have also grown our presence in Melbourne, Sydney and into North Queensland.

“The demand has also moved us into product expansion. We’re now offering our customers prime movers, curtainsider trailers, dry freight vans and a whole other range of custom-built truck bodies. We are developing a full-service offering beyond just the refrigerated trucks and trailers which we are synonymous with.”

Scully RSV’s value proposition is currently divided into cold chain units for purchase or hire. These different purchasing mechanisms, Andrew explains, each have their own advantages.

“Much of it depends on what stage of growth our customers are at and what their operations require,” he says. “Many of our customers don’t exclusively work in transport. So, as part of the flexibility that is so integral to Scully’s own business, we’re able to cater to different types of needs.”

Scully RSV’s hiring options, for example, are ideal for what Andrew refers to as “emerging businesses” which need to bolster their fleet and equipment in the midst of rapid growth. Scully RSV executes these hiring options in consultative partnerships with clients which sees both parties working together to assess individual transport requirements. Following this, Scully RSV offers equipment to its customers at a long-term rental rate but without the liability that would normally be associated with the equipment if it was owned or leased.

Andrew says this is a massive benefit for emerging companies because they won’t need to worry about the aforementioned liability when trying to expand.

“Our hiring options give clients the benefit of a long-term rental rate along with the flexibility of the hired asset not sitting on their balance sheet,” he says. “Trucks and trailers are depreciating assets, and for companies experiencing rapid growth and upscaling of their business, having that contingent liability off their balance sheets is critical because it allows them to further invest in their futures instead.

“These businesses can then invest in accretive capital allocations such as building more brick-and-mortar infrastructure or focus on strategically growing or diversifying via merger and acquisition activities and more. They can have the best of both worlds – dedicated equipment custom built for their needs and the ability to grow their business.”

Scully RSV’s purchasing options, on the other hand, attract all different kinds of companies. These customers tend to be more mature transport operations which have built up a fleet with equipment. In this case, Andrew states that a blend of rental and ownership is critical.

“Buying a truck or trailer means investing in your business,” he says. “These units are assets. We deal with lots of different kinds of customers, but for transport companies in particular, it makes sense for them to want to own a large proportion of their own fleets.

“This ownership is the value of their business – it’s their DNA if you like. For many clients, buying a refrigerated body from us is absolutely worthwhile if continuity of work is stable, capital isn’t a constraint and/or there isn’t a heavy growth phase present.”

Another critical aspect of Scully RSV’s purchasing options include a hire-to-buy strategy. This is one which Andrew regularly recommends for more mature companies.

“I would never tell an established business to hire everything from us or buy everything from us either,” he says. “There’s an optimal mix of both. Owned equipment should make up around 70 to 80 per cent of a mature fleet at any given point in time, while the other 20 to 30 per cent should be made up of flexible hired units.

“This method gives operators flexibility and availability. While asset ownership is important, transport companies can keep their businesses flexible by handing back hired units that aren’t needed as seasons and contracts change.”

Scully RSV’s growing variety of refrigerated transport solutions is a true reflection of the business’ adaptability, an aspect that has fuelled its growth and development for over three decades.

“I think our success really does come from our flexibility,” Andrew says. “We are proudly agile and nimble. We pride ourselves on actual and meaningful disruption in the market. When there is an opportunity to add meaningful value, we make fast decisions and respond to our customers and their needs as they evolve, like we have with our scalable hire and hire-to-buy options.

“Whatever the circumstances or scenario, we can bring creative solutions to the table. We lead the road transport market in this respect. That’s the secret to our success.”