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Nightfreight Saves Customers 50% Transport Costs With 'PAY AS YOU GO' Service PDF Print E-mail
Thursday, 28 August 2008

Nightfreight is to launch a 'Pay as You Go' 2 man home delivery service designed to save retailers up to 50% of their existing transport costs. This new delivery solution will be the UK’s only independent shared user network service available to retailers on a pay as you go basis for an unlimited range of products.

The service, which will be managed through Nightfreight's Deliver2Home team, is targeted at medium and large retailers who are currently using fixed cost resources such as dedicated vehicles and warehousing.  These resources are either owned in-house or supplied through a third party service provider.  They have to be paid for fifty-two weeks of the year, regardless of usage. The savings can be made through reducing or eliminating these fixed costs and replacing them with a variable charging structure (Pay As You Go) that directly relates to the number of deliveries required. As a result, retailers will be able to deal with peaks and troughs throughout the year without incurring price penalities.

Other benefits of the service include the ability to deal with difficult geographical demands – Deliver2Home offers a daily delivery to 90% of the UK population with varying weekly delivery timetables to all other postcodes areas – guaranteed service levels, a web based order system, and track and trace.

Peter Louden, Managing Director at Nightfreight Deliver2home, said: "In the current economic climate retailers are facing increased delivery costs, customer demand for higher levels of service and an uncertain market. Understandably they will need to look to their supply chains as a way of saving money or risk seeing their margins eroded by high distribution costs. Nightfreight’s unique ‘Pay as You Go’ solution will help them to save up to 50% of their costs whilst maximising productivity levels within their reduced   in-house and/or third party assets.”

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