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Businesses in London and other major UK cities often struggle to manage logistics, especially during busy times of the year. When you’re short on space, and your budget is too tight to spend on permanent staff when they’re only needed for short-term, high-demand periods, you’ll need to look into other solutions.

This is where outsourcing logistics could be a real game-changer. By making use of on-demand removals services, you can scale up to meet demand when you need to – and save money during quieter periods.

Why it doesn’t always make sense to employ full-time logistics staff

If demand is consistent – and consistently high – then having a permanent in-house team to manage things like deliveries makes total sense. But for many businesses, it doesn’t quite work like that.

For growing or seasonal businesses in particular, demand and logistics needs tend to fluctuate throughout the year. You could end up paying quite a bit (including salaries, NI, pension contributions and holiday pay) to have people sitting idly when demand is low.

But then you may face a dilemma – what do you do when a rush of orders come flooding in, or demand unexpectedly skyrockets? Scaling is always difficult, which is why flexibility is so important – and why fixed staffing doesn’t always work.

Why more businesses are turning to on-demand, flexible logistics in London

On-demand logistics gives you access to professional movers, vehicles, and support only when you need it. You aren’t tied into lengthy contracts or need to pay hefty retainer fees upfront. Instead, you can simply book services by the job or day.

This enables businesses to:

• Scale logistics support up or down at a moment’s notice
• Avoid long-term commitments and large upfront (and ongoing) expenses
• Control costs more effectively
• Respond quickly to changing circumstances.

Flexible logistics is ideal for events, markets and pop-up shops

One of the most popular uses of on-demand removals services is for events. If your business regularly appears at exhibitions, trade shows, markets or conferences, hosts product launches and brand events, or even runs pop-up shops – you’re going to need some logistics support.

These kinds of events are time-sensitive and often involved multiple locations, tight schedules and heavy equipment. A professional removals company with specialist experience in this area, such as Kiwi Movers, could be the perfect partner.

We can help with:

• Event set-ups and breakdowns
• Transporting staging, furniture and promotional materials
• Early-morning or late-night access requirements
• Storage requirements, through our sister company Kiwi Storage
• One-off or recurring events across London

You’ll find that this could be far more cost-effective compared to purchasing vans or maintaining an events team year round.

Helping your business cope with seasonal surges

Many businesses are affected by seasonal surges, whether it’s the pre-Christmas rush for online retailers or the summer months for holiday companies. Rapid shifts in demand can be hard to manage, however much you try to plan for them.

Where it just isn’t cost effective to maintain permanent staff and temporary staff are hard to find, on-demand logistics could be the ideal alternative.

Choose the right partner and you’ll be able to book jobs at short notice, whenever you need to.

You’ll be able to get those Christmas orders out to your customers, deal effortlessly with the chaos of sales periods and move stock between storage and retail spaces with ease.

Book by the job or day with Kiwi Movers – no contracts, no risk

Standard logistics contracts can lock businesses into long-term contracts requiring minimum usage levels. If this doesn’t match up with the real demand your business experiences, you could end up paying too much for services you simply don’t need to use.

The good news is that there is a far more flexible and convenient alternative available.

Get in touch with our friendly team here at Kiwi Movers and we can help you book logistics support by the job or the day, with no ongoing commitments. It’s flexible, transparent and cost-effective – and you’re in the driving seat at all times.

We work with businesses across a range of industries, from the high-end concierge sector to interior design services. From handy man and van hire to multi-site logistics support, project management and consultancy – we do it all.

If your small business needs transport – whether its for deliveries or picking up supplies – you’ll have a choice to make. Do you buy your own van, or make use of man and van services?

Cost will inevitably be one of the main considerations, but you’ll also need to think about factors such as flexibility, convenience and control.

Here, we’ll take a look at the key costs involved with both options, to discover which could be the
most cost-effective for your business.

Option 1: Owning a van

Your first impulse may be to simply purchase your own company van. After all, this gives you complete control, along with the convenience of having a vehicle ready and waiting whenever you need it. It can also be branded with your logo, and driven by your own staff.

However, buying and running a company van can be a lot more expensive than you may think. You’ll have to shell out a large sum initially, and there are also ongoing fixed expenses – as well as legal and staffing responsibilities. These don’t disappear during quiet periods, so you could end up paying a lot for times when your new van is sat idle.

Option 2: Using man and van services for businesses (UK)

Another option to consider is making use of a man and van service on a regular basis. There are companies such as us here Kiwi Movers which offer dedicated and tailored services for businesses, whether it’s support for a one-off project or daily deliveries.

You might imagine that this kind of service is prohibitively expensive to use as more than just a one-off, but you might be surprised.

One of the main benefits is no upfront investment is required, and no long-term commitment either. Any costs flex with demand, so you’re not paying extra during quiet periods.

Van hire vs. ownership – the main costs compared

Owning a van

Let’s start with how much it costs to own a company van. There are a few different costs to look at, including:

Upfront purchase costs

You may pay anywhere between £15,000 and £40,000 to buy a new van. If you opt for financing, your monthly payments could be around £200 to £600 depending on the agreement, make and model. You should also consider depreciation, which can be around 20% to 35% especially in the first year.

Insurance

You can expect to pay between £600 and £2,000 a year to insure your new van

Fuel

It all depends on your mileage, but an average business could pay between £2,400 and £3,600 a year for fuel (based on 20,000 miles a year).

ULEZ and emissions charges

You’ll need to pay a flat rate of £345 a year in Vehicle Excise Duty (VED) for most vans. And if you’re based in London and your van isn’t compliant, you could be facing extra charges of £12.50 per day. Congestion charges may also apply.

Parking and fines

When you own your vehicle, you are solely responsible for parking charges, as well as paying fines and penalties. These may be small costs, but they can add up fast.

Maintenance, repairs, MOTs and servicing

Annual maintenance for a typical company van can reach £1,000 or even £2,000 a year, which includes costs relating to servicing, MOTs, tyres and unexpected repairs – as well as breakdown cover. You may also lose money while your vehicle is temporarily out of action.

Staffing and employment costs

If you have a company van, you’ll need someone to drive it. This means paying a salary, along with National Insurance and pension contributions, holiday and sick pay. There may also be training and additional insurance costs.

Using man and van services

If you make use of man and van services, you don’t need to pay any upfront costs. You also don’t need to pay for insurance, fuel, parking, ULEZ or emissions charges, maintenance or any staffing costs. It’s all included in the hourly or daily rate you’re quoted by the company you use.

But how much does it cost to use man and van for business services in the UK? It’s really important to get a quote tailored to your needs, but you could pay as little as £35-£50 per hour.

So which is the most cost-effective option?

If your business has scheduled deliveries all day, every day, it could be argued that owning a van is the more suitable option.

However, if your business only needs occasional deliveries, has quiet as well as peak periods, and needs flexibility – using a man and van service could be by far the most cost-effective option.

It doesn’t tie you into expensive ongoing costs, and there’s nothing to pay upfront. It’s a pay-as-you-go option that could suit the way your business works.

Find out more about our trusted commercial services here at Kiwi Movers.