TNT discriminate against UK manufacturers
We've been waiting a month for a TNT security inspector to come and visit a consignment that was damaged in transit. In fact TNT managed to damage it twice - once on the way out and once on the way back. Fortunately we have photographic evidence of the before and after as the client took a shot of the packaging when he sent it back (which means TNT can't blame it on the client's shoddy packaging). The damage occurred because TNT have tipped the unit on its side (both sides, once each way) even though it is mounted on a pallet at TNT's request (I asked them to participate in the packaging design just over a year ago - assistance I was grateful for and in which Paul Roberts of TNT was extremely helpful). After a month of waiting for the inspector we gave up and repaired it today - we sent the client a new unit out by return of course.
I don't mind TNT damaging units - at least I don't mind provided they don't do it too often and I have to admit they are the best option we have at the moment (although this may change as our freight blend migrates as our business grows). What I do mind though is the attitude they have towards refunding damages. They discriminate against manufacturers. They do this by only refunding for damages for which the repaired part is bought in. This means that any assembly (and disassembly) labour is ignored. Now I quite agree that profit ought to be excluded, but excluding internally manufactured components or internal labour is absolutely not on. Somebody has to do it and it ought not to make any difference whether it is in-house or outsourced. Doing it this way discriminates against UK manufacturers in favour of those who source their products outside the UK.
As a side effect TNT management think that their service is good because they have low claims costs, whereas in fact they have artificially depressed the claimable amount. Oh and the depot managers (in this case Jamie Mitchell) simply bully small manufacturers with the "if you don't like our conditions of carriage you can go elsewhere" response. Of course they know only too well that they don't say this to the larger customers, and that they have a near monopoly on certain freight classes. In this particular instance the result is that our claim is only for £50 whereas the true cost to us is about £250 excluding customer satisfaction and management time. Which is a lot of money to us. I could get around this by getting a supplier to create a fake invoice but that would be dishonest.
There's not much I can do right now except to run trial batches out via the other carriers, and to talk to the reps of the other carriers who I have been declining to meet for the last year. And to post this cautionary tale. And to discuss my experiences with my peers in other small UK manufacturing businesses who distressingly report exactly the same problem with TNT which really annoys all of them as well. It's a pity really because a slightly different attitude from TNT would cause us all to really support them rather than griping like this.
Oh and I'm doing a redesign of the unit that was damaged to eliminate two of the weak areas and which will also allow me to use different packaging. And maybe even make it more attractive to other carriers ...
BT still haven't got our new lines in - it has now been escalated again within both CT and BT. However today BT did replace a faulty line card on the exchange side DSL equipment which has cured one problem though.
I don't mind TNT damaging units - at least I don't mind provided they don't do it too often and I have to admit they are the best option we have at the moment (although this may change as our freight blend migrates as our business grows). What I do mind though is the attitude they have towards refunding damages. They discriminate against manufacturers. They do this by only refunding for damages for which the repaired part is bought in. This means that any assembly (and disassembly) labour is ignored. Now I quite agree that profit ought to be excluded, but excluding internally manufactured components or internal labour is absolutely not on. Somebody has to do it and it ought not to make any difference whether it is in-house or outsourced. Doing it this way discriminates against UK manufacturers in favour of those who source their products outside the UK.
As a side effect TNT management think that their service is good because they have low claims costs, whereas in fact they have artificially depressed the claimable amount. Oh and the depot managers (in this case Jamie Mitchell) simply bully small manufacturers with the "if you don't like our conditions of carriage you can go elsewhere" response. Of course they know only too well that they don't say this to the larger customers, and that they have a near monopoly on certain freight classes. In this particular instance the result is that our claim is only for £50 whereas the true cost to us is about £250 excluding customer satisfaction and management time. Which is a lot of money to us. I could get around this by getting a supplier to create a fake invoice but that would be dishonest.
There's not much I can do right now except to run trial batches out via the other carriers, and to talk to the reps of the other carriers who I have been declining to meet for the last year. And to post this cautionary tale. And to discuss my experiences with my peers in other small UK manufacturing businesses who distressingly report exactly the same problem with TNT which really annoys all of them as well. It's a pity really because a slightly different attitude from TNT would cause us all to really support them rather than griping like this.
Oh and I'm doing a redesign of the unit that was damaged to eliminate two of the weak areas and which will also allow me to use different packaging. And maybe even make it more attractive to other carriers ...
BT still haven't got our new lines in - it has now been escalated again within both CT and BT. However today BT did replace a faulty line card on the exchange side DSL equipment which has cured one problem though.
posted by David Sharman at 8:25 pm
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