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Job losses as Specialist Group outsources logistics to third party firm

Published: 30 October 2014
Former wholesaler and parent to Builders Brand and Specialist Brands, Specialist Group has confirmed today that changes to the way the company operates could see it almost halve its workforce.
On Friday the firm entered into consultation with 23 of its 56 employees, including warehouse staff and its on-the-road sales force, as it reveals it is outsourcing all logistics to a third party.

The reason behind the decision, Specialist Group managing director Johnny Franks told DIY Week, is because it will be "more cost effective and more efficient" for the business as a whole. "It means we can offer a much better service to our customers," he added.
The sales force is being "trimmed", as Specialist Group utilises wholesale and distributive channels to supply retailers with its tool, hardware and decorating ranges.

Mr Franks explained that, as the firm has built and strengthened its Builders Brand and Specialist Brands in recent years, so the business has changed and moved away from its roots as a wholesaler. The adjustment in operations reflects this change and means, he said: "we can concentrate on what we do best, which is building our brand."

Specialist Group had a strong FY 2013/2014, with sales up 12% for the year ended February 28, 2014 and pre-tax profit up 14%. At the start of 2014, the company also announced a partnership with Ferm power tools, as exclusive distributor within the UK.
Mr Franks said: "Anyone who's followed our business knows that we have had some of the best year's trading to date. We have been doing incredibly well."

Comments

30 October 2014 00:06:00
By Jane
So Mr Franks, no response regarding withholding redundancy monies and paying over 4 months, without consultation, consent or good reason.
Totally disgraceful way to treat people who have once been part of your company and enabled you and yours to have a good life. I hope you sleep well at night!
For your sake you might want to hope that there is no truth in the saying 'What goes around, comes around' or you might find the business struggling.
30 October 2014 00:05:00
By Jane
Mr Franks states we have been doing incredibly well . If that is the case perhaps Mr Franks can explain why those made those, now ex-employees, received a letter the day before the redundancy payment was due to go into people's bank account telling them it wouldn t be paid in a lump sum, as entitled to, but over 4 months!

NO explaination, no negotiation, no apologies! Doing incredibly well? Or just plain greedy, make up your own mind!

Mr Franks is, of course, entitled to quote again regarding this.
30 October 2014 00:04:00
By Joe
you may have known them as Duwit or Builders Brand.

Obviously moving away from selling to independents if getting rid of sales force and going out to large retailers. I know they sell through Ideal World and Argos so looks like going down that line and getting rid of staff. Shame, and very bad news for loyal staff.
30 October 2014 00:03:00
By Bob DIY
Well, you live and learn. I've been in this biz for 30 years, on both sides ofthe fence and like I say, I've never evn heard of them. Just goes to show.

Odd that an apparently successful business would look to cut their saless orce. You'd think that would be an area to invest the logistica savings!
30 October 2014 00:02:00
By Joe
Its a real story, the company is based in Manchester.

Is this a definate Specilist? If your on the road sales force go where Is your face to face customer support going to be?
30 October 2014 00:01:00
By Bob DIY
Is this a made up story? Who is this company? Never evn heard of thm.

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