Triangle of trust 13-01-05

Strategic thinking is a matter of course for the company that has identified two core markets on which to base its business: food & consumer goods, and industrial. Christian Salvesen is well on the way to becoming a truly pan-European business. Rapid expansion across mainland Europe in recent years means that nearly half of its turnover (£ 399 for the six months to 30 September 2004) is now derived from operations on the continent.

As a result of its expansion an increasing proportion of its fleet now operates on mainland Europe or is locally based in the eight countries across which its network spreads. Christian Salvesen currently has 200 sites in the UK, Belgium, France, Ireland, the Netherlands, Italy, Portugal and Spain. For its fleet Salvesen relies heavily on Dutch truck manufacturer DAF Trucks N.V., a PACCAR company: 70% of its trucks sport the DAF badge, from 7.5 tonne LF45’s to XF Super Space Cabs. In 2004 alone, Salvesen ordered more than 400 DAFs, the majority of which (220) are based on mainland Europe, mainly in the Benelux and France. “My job isn’t just about buying trucks at the right price - though that’s important”, says Steve Mercer, Group Fleet Services and Procurement Director for Christian Salvesen, when asked about the long existing relationship with DAF. “I need to know that those trucks will be supported effectively and economically throughout their working life. After sales is not important, it is vital! DAF have understood this as no other manufacturer. Their European parts distribution is second to none, the service level of their dealers is incomparable and their International Truck Service still has no equal, more than thirty years after it started.”

Alliance
DAF and Salvesen closely work together in getting the right truck for the right job. “I work with DAF to create a specification of truck that will command the best residual value”, says Steve Mercer. “Furthermore, DAF is forthcoming with innovative products and services tailored to our specific needs. DAF clearly recognizes the importance of working closely with us to deliver what we need. With DAF we’ve been able to progressively move further upstream in the production process to get the truck that we want. Today’s product going down the line at the Eindhoven and Leyland assembly plants is built and finished to exactly the same standard, whether destined for our operations in the UK or mainland Europe. DAF delivers what we want, not what satisfies its production scheduling and processes. Now that’s a strategic alliance. Because both Salvesen and DAF are taking a long term view of our business relationship.”

One stop shop
A large part of Salvesen’s fleet, mainly in France and the UK, is financed by PACCAR Financial Europe (PFE). PFE is part of PACCAR Financial Services, which provides funding and lease programs to PACCAR customers throughout the world. “PACCAR Financial has been globally helping our customers for over 40 years with innovative finance plans that can be customized to meet individual needs,” says Graeme Laing, European Fleet Sales Manager of PACCAR Financial Europe. “The great advantage we have compared to ‘traditional’ general finance companies is that our roots are in the truck industry. As we know the ropes, we are able to develop and offer financial products fully satisfying the wishes and needs of that same transport industry.” Laing says that PFE uses the same business philosophy throughout Europe which offers finance continuity to its customers. “We offer pan-European contracts and have specialists operating on a pan-European basis,” said Laing. “Our account management doesn’t stop at borders – we have a seamless financial operation which is a big plus for companies like Christian Salvesen who operate in many countries.”

Turnkey
DAF, the DAF dealers and PACCAR Financial Europe have teamed to give Salvesen a turnkey transportation solution, according to Laing: “The trucks that DAF delivers to Salvesen are ready to run with custom Christian Salvesen blue paint finish, white front panels, line-fitted air management kits etc. Financing is done by PACCAR Financial Europe and in some countries, like the Netherlands, a complete R & M contract is added.” Adds Salvesen’s Steve Mercer: “The relationship that DAF and PFE have with Salvesen goes much further than just selling trucks. They deliver a tailor-made and complete package that fulfills all our transport needs.”