Tuesday 27th Sep 2016 - Logistics Manager

Menzies targets e-commerce with parcels buy

Menzies Distribution has acquired Inverness-based AJG Parcels in a deal that will allow it to enter the e-commerce parcel market.

Adrian Gray, AJG, and Forsyth Black of Menzies. pic: Trevor Martin.

Adrian Gray, AJG, and Forsyth Black of Menzies. pic: Trevor Martin.

It is focusing on hard-to-reach areas, where it will act as a neutral consolidation partner for major parcel carriers.

AJG was launched 20 years ago delivering 20 parcels a day. It now makes around 9,000 deliveries and 800 pick-ups daily (around 3 million and 300,000 per year respectively) with its 140 staff and a fleet of more than 100 GPS-equipped vehicles.

Menzies has a fleet of some 1,600 vehicles which are used to deliver newspapers and magazines at night. It has been working of plans to unlock the potential of the business in daylight hours. Its acquisition of AJG is seen as an important step toward that goal.

Managing director Forsyth Black said: “The purchase of AJG is an important step in our ongoing journey to build on our newspaper and magazine distribution business. It is especially significant because it allows us to participate in the fast-growing market of parcel delivery and collection.

“With our existing geographical reach, especially in harder to access towns, the acquisition further underlines our appeal to companies seeking cost-efficient deliveries to the North and rural West of Scotland. We believe that, by acting as a neutral consolidator in these areas, we can offer a compelling partnership proposition to the UK’s major parcel carriers.”

AJG Parcels operates from a 10,000 sq ft hub in Inverness, providing same-day delivery throughout the Highlands. Its second 10,000 sq ft regional hub in Linwood, near Glasgow, services Argyll with daily links to its bases in Dunoon, Lochgilphead, Oban and Fort William. Overall, it has a network of 13 satellite depots providing a next-day service to consumers in many areas including the Western Isles and Orkney.