Chilled Express Ltd – A Case Study

Chilled Express was set up in 2004 by brothers Surrinder and Anil Duggal. They offer the service of distributing temperature-controlled food to other businesses, including many large organisations, such as Morrison’s, Sainsbury and Brake Bros. The company has the ability to transport frozen, chilled or dual temperature goods to meet the individual specifications of each customer.

The company operates in a highly niche market, with only a few competitors. Therefore, in order to successfully establish business growth, the company must work with large Plc companies. Due to the nature of the market, Chilled Express only have 15-20 main customers, however these contracts are highly lucrative. This is highly characteristic of the business-to-business market in which they operate. They sell this service of cold storage from producer to factory and the focus is on the quality of the service, although respectively they are the most competitively priced company offering this service.

There are three entrepreneurs within the business, with only one having any formal business training. They decided to start the business when Anil Duggal was actually working for Brake Bros. He had always had aspirations of beginning his own business, and decided it was the right time, especially due to the increased working hours he had been enduring for Brake Bros. After consulting with his brother, they decided to investigate the market and conducted extensive research with all of the big companies with whom they would wish to gain contracts with, providing a similar service to competitors, but at lower costs – without compromising on quality.

They began the company with one van and after attempting to get contracts with various companies, ironically gained one with Brake Bros., an established company, and after just four weeks they required another van to keep up with the amount of orders they had generated! This contract also enabled them to gain business with other larger companies in the well-established market and within one year they had acquired a fleet of 10 vans. The company is still developing and growing today at a rapid pace!

Discussion Questions

• Why do you think Chilled Express only have 15-20 main customers?
- Should they develop this?
- If so, how?
- If not, why?

Consider: - The nature of the business, how much they can ‘cope’ with, the importance of specialist customer service to the needs of each customer and the developmental strategies needed to attain successful growth of the company.

• How important is the fact that Chilled Express Ltd is the most competitively priced in their market?

Consider: - How they could retain this status throughout future expansion?

• How well do you think the Duggal brothers prepared for their start-up venture?

Consider: - The research they undertook, the contracts they gained and the impact of their rapid expansion.