pallet & parcel networks distribution l
With pallet network membership still remaining strong, the past few years have seen many try and capitalise on their popularity and create new, bespoke offerings. Here, Adrian Russell, managing director of Pall-Ex, tells ShD why retail has been a particularly lucrative sector for the palletised freight network.
Retail intelligence I
n tough trading conditions, the exploration of new markets has been imperative to facilitate growth. Launching new ventures in the midst of global economic concern is certainly not for the faint- hearted. However, I believe that those who have had the guts and determination to push forwards and seek new opportunities are the ones that are coming out of this recession in a stronger position.
Pall-Ex’s rapid expansion into Europe has been no secret. We now have networks up and running in Italy, the Iberian Peninsula and Romania, with more to be announced in due course. Despite our increasing European presence, we have also been focussing on the domestic market too, with retail being among our primary targets. It is all very well having a clear target, but there has to be a reason to strike up a conversation in the first place and this is something that we have achieved by presenting a solution to a common problem.
Many retail outlets are situated in timed pedestrian zones and are not open around the clock, which results in a small delivery window when staff are present and shoppers are not restricted. Space can also be an issue and often pallets need to be split on location.
We developed Retail Plus+ to help counteract these issues, adapting current resources to offer home deliveries, timed deliveries into retail outlets and deliveries outside of trading hours, including the de- palletisation of goods, transfer into stockrooms and the removal of packaging.
This delivery technique is unique within pallet networks and is an example of us spotting an opportunity and modifying traditional strategies to meet the needs of the customer. On paper, Retail Plus+ obviously looks great, but it is something that we are actually putting into practise and delivering real benefits to some of the countries biggest retailers. Take fresh, handmade cosmetics retailer Lush as an example.
Pall-Ex has had a distribution partnership with Lush for over a decade now and the team finds that our service offering is well suited to the demands of its own supply chain. For Lush, security in the supply chain is most important at peak times, when delivery deadlines become absolutely critical. It means they are able to have ad-hoc collections during the day, which eases congestion during busy periods and enables a smoother flow of outbound traffic from their warehouse.
Retail managers are able to make additions to their orders knowing that these will still arrive with the original order,
connecting with the end- of-day collections. Having regular drivers delivering to the shops also helps to establish an
understanding of Lush’s products and shop needs.
One of the main advantages for Lush is that the service is not set in stone but flexible enough to be able to
www.PressOnShD.com February 2012 ShD 51
react to new requirements, with local hauliers being able to plan and adapt to changing supply schedules across the company’s retail network. Many of the other retailers that we work alongside have also found that this approach has a dramatic impact on their environmental credentials, with one customer calculating that the scheme has resulted in an annual saving of 890 tonnes of CO2. The primary function of pallet networks will always remain the same but, like any business, diversification into new markets is a necessity if the business is to grow financially. Those markets that have a genuine need or a supply chain problem are the ones that present the greatest opportunity and the industry can not be afraid to produce tailored, bespoke offerings. For us, that sector is retail, and over the course of the next year we would definitely expect to see growth when it comes to our retail operations. ●
www.pallex.co.uk
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