Aftermarket truck and bus parts supplier Multispares is looking after its customers by sourcing products from leading manufacturers and specialist suppliers from around the world with a focus on keeping prices down.
It began business in 1976 with the initial sales based around a heavy populated Leyland truck and bus platform with a small touch of Japanese offerings.
The company has now grown with an integrated branch network with 16 sites in Australia and five sites in New Zealand, with the brand part of ASX-listed Supply Network Limited.
It now covers a huge range of European, Japanese, and American truck and bus parts and heavy trailer spares are also covered in the range with a stock holding of over 60,000 part numbers.
Items and replacement parts include engine, filtration, injector, turbocharger, cooling, electric, clutch, driveline, brake, wheel end, steering, suspension and accessory systems.
Multispares NZ general manager Malcolm Lawrence says keeping prices low is important for his customers.
“We work hard to eliminate unnecessary costs and we buy in the right quantities to reduce our prices.
“Quality comes first at Multispares. We are a public company with a proper sense of ethical and social responsibility.
“We stand behind the quality of our products, especially their reliability and durability on service.
“We have a fully integrated distribution network that allows us to import, distribute and hold stock close to customers,” Lawrence says.
The company offers a professional service to help transport operators reduces downtime and operating costs. A national hotline is supported with branches in Auckland, Hamilton (distribution), Wellington, Christchurch and Dunedin.
Product development staff are constantly extending the in-house catalogue to speed up customer requirements.
STRONG PERFORMANCE IN FY20 RESULTS In Supply Network Limited’s recent annual report, the company posted overall sales revenue of A$136.8 million (up 10.4%), net profit after tax of A$9.5m and a total dividend of 23.42c per share.
Sales revenue in the Australian operation increased by 11.3% and in the New Zealand operation it increased by 6%.
In a statement by chairman Greg Forsyth and managing director Geoffrey Stewart, the company says it was “fortunate” to be in a strong position and while COVID-19 has been challenging the business was “relatively unaffected”.
“From a position of strength, we will do our best to contribute to economic recovery by supporting staff and customers to stay safe, continuing to invest in long-term business development plans and maintaining our long-standing progressive dividend goal,” it says.
“Our business has again proved remarkably resilient. Although some truck and bus fleets are involved in consumer discretionary activities such as tourism, events, etc., most perform an essential service. Our economy would simply cease to function without the continued operation of trucks and public transport.
“Furthermore, the maintenance of heavy vehicles is essential to their safe operation, so the supply of spare parts is also regarded as an essential service.
“Heading into the pandemic our sales momentum was building, then for the six weeks from mid-March sales in Australia remained relatively flat and in New Zealand declined because of their strict lockdown measures.
From late April, as lockdowns were eased, our sales momentum returned. By early May sales revenue was back at pre-pandemic levels and we finished the year strongly,” the statement says.
“The pandemic has required organisations to adapt to a changed environment, particularly geographically dispersed companies like Multispares.
With travel severely restricted, the last six months have shown the value of our regional leadership structure wherein local teams under local management take full responsibility for local customer relationships and service standards.
“The very challenging international and economic backdrop has also reconfirmed the advantages of a well-integrated supply chain from source to point of fitment, allowing quick decisions to maintain supply with minimal risk,” it says.
Supply Network Limited has previously set a revenue target of A$150m in FY2022 and despite the current conditions, the company says it is confident of exceeding this target.
“Excluding stock and staff, the biggest investments required to support an increase in revenue from $150m to
$200m are additional distribution capacity in Australia and New Zealand.
“In New Zealand we are investigating options to expand the existing Hamilton Distribution Centre and in Australia we are reviewing proposals for a new Distribution Centre in Melbourne, which would also help manage geographic risk and improve service levels to our Victorian branches.
“The immediate economic outlook is very uncertain, and we are expecting some instability until the pandemic is under control internationally.
We are also expecting some upturn in major infrastructure projects, which should balance any segments of the truck market that slow down.
Even under these difficult circumstances we remain confident of growth in the current year and of passing our revenue target of $150m in FY2022,” the company says.
