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."