| Flying the flag |
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From inception, FLAG’s directors built their business ethos around a commercial strategy that had Corporate Social Responsibility (CSR) at its core. The aim was simple, to eliminate an easy source of vehicles acquired for criminal purposes and an arena that facilitated money laundering. All too often, traditional motor auctions attract the criminal element. In conventional auction halls, there are no real checks on the identity of buyers. False names and addresses can be given, removing potentially vital links to the identity of the owners of vehicles used in ram-raids, robberies, smuggling and even terrorist activities. And with the facility to pay for the vehicle in cash, all obvious traceability is lost. “By restricting sales to verified trade buyers only, who have to provide the minimum of a VAT registration number and bank details, and by refusing to accept cash payments, FLAG closed down a major source of vehicles for crime,” says CEO Andrew Walker. “Far from restricting the company’s growth, the decision has, in just two years, taken FLAG to a position where it now represents a serious challenge to the conventional operation of motor auctions in the UK. Fleet vendors have seen a positive effect on the residual values achieved on their vehicles as the trade and major franchise buyers feel more comfortable dealing in a ‘professionals only’ environment.” This radical approach has won many supporters and has brought accolades in the form of industry awards. After just 18 months of trading, FLAG was awarded the Institute of the Motor Industry’s “Brass Plaque” in recognition of its professional business standards, key personnel training and customer-relations management: an award not granted lightly and subject to annual inspections.
Less than two years since sales began, the company’s status as a major challenger to the two motor auction industry giants was confirmed when FLAG was runner-up in the prestigious Fleet News Awards, Best Disposals/Remarketing Company category. Earlier this year, FLAG was short listed from over 5,000 entries in the Leicestershire Business Awards. In May, Presentation Awards were made, with FLAG emerging as clear “Best New Business” winner. Commendation has also come from leading industry figures. Industry writer and Fleet Audits Director Stewart Whyte welcomed FLAG’s stance in extending the principles of CSR. “The clean, secure and ethical process built into the Fleet Auction Group’s arrangements can only help reduce the extent of vehicle-specific fraud and other undesirable activities involving motor vehicles.” Sarah Sillars, Chief Executive of the Institute of the Motor Industry, was equally enthusiastic: “I commend FLAG for making CSR fundamental to its strategy as an example of how commercial objectives can have a synergy with socially responsibility principles.”
Cars, LCVs and HGVs “This means,” explains Commercial Sales Director Mike Gray, “that you cannot just jump into a particular tractor unit and start driving it. With brake and accelerator play varying a lot more than on cars, and with a greater number of ‘blind’ spots, stop/starting these vehicles through an auction hall can be quite dangerous. Thankfully, there have been no serious injuries yet in this country, but there have been a number of very near misses.” The approach at FLAG is to have all the vehicles started up in advance for inspection, and then to take the buyers into a 250-seat, state-of-the-art presentation suite. Here, they can bid in both safety and comfort away from diesel fumes, with each vehicle and its details being shown on a large, multi-media display as it comes under the hammer. Comprehensive facilities
The open-plan reception area is welcoming: there are no cash sales, so no need for security grills everywhere. And, believing that if people are prepared to travel from all over the country to visit them, FLAG takes hospitality very seriously. The restaurant provides hot and cold meals and snacks throughout the day to a standard many leading chefs would be proud to present. The complex also boasts a state-of-the-art conference suite that can be used for formal presentations, silver service dining or informal workshops. It is this suite that is used for the HGV sales bidding. The twin auction halls lead-off a secure, 300-vehicle, indoor storage and pre-sale viewing area, ideal for wet weather presentation. FLAG provides a comprehensive vehicle preparation and de-logoing service to ensure customers’ fleets are presented to their best possible advantage. New remarketing venture These vehicles will come direct from contract and will be held at FLAG’s centrally-located site. They will be available to view both physically and via a dedicated website with secure access for local authorities only. Local authorities will need to apply for membership of the LAVP, which is totally free. In return they will receive access to hundreds of vehicles held by the LAVP that will be available for outright purchase or short/medium-term leases.
Local authorities constantly have to balance budgetary constraints and pressures to achieve best practice goals. Vehicle needs can mean significant capital investment, or expensive weekly rentals, for what are relatively short-term requirements. LAVP enables local authorities to save time, resources and money, while knowing they will be able to run the fleet of vehicles they require to carry out their community obligations. Entering a mature market, long dominated by two giant players was never going to be easy, but FLAG has shown that, by taking a radical stance and adopting sound management philosophies, it can be done. The Fleet Auction Group, Brindley Road,
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