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pALLETS Palletline takes on the 3PLs


How did we manage to move smaller loads of freight around the country before pallet networks were invented? They’ve become such an intrinsic part of the freight industry in the UK that it’s hard now to imagine life without them. Nowadays, its perfectly possible to move a pallet or part-load between most points of the UK south of Inverness on a next-day basis – unthinkable 20 years ago, except by going to the expense of hiring a dedicated vehicle and even then only if you could seek out a suitably-placed haulier in a phone book or a


set up by venture capitalists. There are around 10 networks


in the country and all of them have survived the recession, at least so far. “I think if one of the networks was going to go, we would have seen it happen by now,” states Buchanan. The networks have fared relatively well in the recession, he believes because a hub and spoke network is intrinsically more economical he says, and while some networks have lost perhaps 15% of their volume (for Palletline it was only 7%) this has been bearable. “Now in


international operators such as Europa, Schenker, DSV CS Ellis, Framptons Transport, Task Force and Immediate Transport. Lately, says Kevin Buchanan,


quite a bit of business has come from companies disgruntled with the service offered by or cost of using their 3PL or 4PL. “We actually have some of the most advanced technology in the logistics business – we might scan a pallet up to nine times in its journey through our network – and we can respond quickly if there are any issues, unlike many 3PLs.” It’s hard to put a figure on the


can offer such a service. DSV in fact has one of the largest chilled operations in the country, and others are in the Hazchem network. “So we will always try and find someone appropriate to meet any customer’s needs. Also, don’t forget, where we tend to be ahead of the game is in our technology. In fact, we have some of the quickest and most automated information systems in the logistics sector. We know immediately, for instance, if a pallet fails to make a delivery.” Palletline operates via a main


hub in Birmingham, which processes around 10,000 pallets a night, with smaller regional hubs in London and Manchester. The structure minimises pallet journeys, while maximising vehicle fill. Handling of pallets is not automated, as in a parcels hub, because of the sheer weight and variety. “It can be anything from boxes of eggs to heavy machine parts,” explains Buchanan. However, the scanning system is very sophisticated and the ‘drive-through’ design of the hub also makes for maximum efficiency. Generally, maximum height


printed directory in those pre- internet days. Many of the pallet networks


are also offering services to and from Europe or even further afield, although it’s fair to say that no other European country has taken the pallet network concept to its heart as much as the UK. And now, the pallet networks are also starting to capture a portion of the third- or fourth-party logistics segment. Palletline was the first such network, set up 18 years ago, according to managing director, Kevin Buchanan. Numerous competitors have since sprung up, but Palletline is still the only company that is owned 100% by its member-hauliers, he says. Other networks are effectively franchises, still others have been


fact, we’re growing by around 15% again, and the Association of Pallet Networks says that our experience is quite typical.” Mergers between networks


are also unlikely because they are difficult to achieve in practice, adds Buchanan. “The problem is that, very


often, the stronger members of a network are in the same part of the country, so it’s very unlikely. Perhaps what is more likely is a change of ownership of some of them, perhaps as venture capitalists seek to realise their investments.” “Being owned by our members


boosts commitment and our members are typically among the biggest hauliers in each part of the country they serve,” he says. The membership also includes


Palletforce safety meets the gold standard


Palletforce has become the first distribution network in its sector to win a Royal Society for the Prevention of Accidents Gold Award for its dedication to health and safety in the workplace. Palletforce had to prove to RoSPA that it is committed to excellence in health and safety and that it had a good management system in place. Chief executive Michael Conroy, said: “Health and safety is of paramount


importance to us. This award underlines our commitment to being the best in all aspects of our operation and I would like to congratulate everyone at Palletforce who has contributed to this outstanding achievement.” RoSPA’s awards manager, David Rawlins, added that Palletforce had


shown a commitment to protecting the health and well-being of its employees and others. As well as the ethical and legal arguments, there is also a strong business case for good health and safety management.


percentage of 3PL business that has gone to the networks but Buchanan believes that there is widespread disillusionment with the cost-plus mentality of many of them. He says that, like the logistics boys, Palletline members can provide a full range of added value services, including packing and repacking, storage and, of course, movements to any part of the country, often more economically than most 3PLs. And it is possible to arrange for more elaborate services such as reworking or configuring products. Palletline as a network


does not offer temperature controlled or hazardous goods movements (other than below the limited quantity thresholds) but again individual members


on the Palletline system is 2.29 metres (slightly more than the industry average of around 2m, says Buchanan) and top weight at the moment is typically 1000kg, though that might actually be reduced after ongoing discussions between the transport industry and the Health & Safety people on the maximum weight it is feasible for one person to shift. The freight does not necessarily


have to come on pallets as such. “The main criteria is that it has to be capable of being picked up by a forklift truck, and also everything has to be loaded and reloaded within a 5-6 hour window in our hub, so there is a limit to what can be handled. But you will sometimes see quite bizarre items with pallet lifting blocks fitted.” Not everything can be


shoehorned into a pallet network, but Palletline has also introduced an electronic freight exchange among its members which can cater for items that the standard network cannot handle. Freight exchanges are not now a new idea, “but because our members know the capability of the people they’re dealing with, you can be more sure of service quality.”


can very quickly go awry, he says. Also, some of the large European spedition companies already offer a broadly similar nationwide freight network in many European countries and any new pallet network would have to take on these powerful competitors. Palletline can though move


Kevin Buchanan The Palletline network will


deliver to literally every corner of the UK – even the northernmost tip of the Shetlands, and Northern and Southern Ireland – and everywhere south of Inverness can be reached next day, though around 40% of Palletline customers opt for the slightly cheaper and slower economy service. Palletline may cover the country,


but Kevin Buchanan says he is not set on world domination. There have been attempts by some other networks to try and set up hub and spoke operations within other European countries, but Palletline will not be emulating them. Hubs are expensive to maintain, and without a minimum amount of freight the economics


pallets within Ireland through JMC Van Trans’ depot in Dublin and it can offer a service between the UK and pretty much any part of Europe through its international operator members. It has also taken on Phil Brady from Hellmann as international development manger and is in the process of formalising its European route and network. “What we don’t do in Europe is operate on a hub and spoke network. But we can offer the same scanning and tracking service,” says Buchanan. One Palletline member,


Immediate Transportation, is also a global freight forwarder so the network can offer a one-stop shop for almost all freight needs. For the future, Palletline is


considering battery electric collection and delivery trucks. These have evolved to the point where a battery-operated 7.5- tonner might soon be commercially viable and certainly in the more immediate future electric forklift trucks are a very likely possibility. “These aren’t new but they would be new in this type of application,” Buchanan says. He would also consider putting


some consignments onto rail, on longer hauls, provided of course that the railways can provide a suitable service with the right timing.


Partners across the Irish Sea


Ireland’s Nightline has launched a new strategic relationship with UK Pallets under which it will move all Ireland-bound traffic on behalf of UK Pallets’ 80 member hauliers. The move is part of Nightline’s campaign to become a major player in the UK to Ireland market and follows the opening of a regional UK depot in Lancashire. Nightline says it is Ireland’s largest independent carrier. UK managing director, Geremy Ruffin, described the move as “an evolution of Nightline as a business because it increases the volume of freight traffic which we will be delivering into Ireland. However, it also


provides UK Pallets and its members with guarantees of better service.” Previously, he explained, shipments


from the UK to the Republic and Northern Ireland had to be split between two carriers. Now, though, “our wholly-owned network of hubs across the island allows for a single solution, offering consistently good, transparent deliveries.” Mainland UK freight will be shipped to the


UK Pallets hub at Lichfield in Staffordshire before being taken by Nightline to Ireland via Holyhead. Deliveries are to be handled by Nightline’s seven Irish depots, overseen


by the firm’s head office in Dublin. UK Pallets’ commercial director, Graeme


Wilson, added that the company’s advanced technology platforms brought further benefits, allowing members and their customers to follow deliveries from the moment goods leave their premises to the point they arrive at their destinations. The deal is the latest agreement struck between Nightline and the UK Mail Group, of which UK Pallets is a subsidiary. The two companies already have a relationship in place covering the movement of parcels from the UK to Ireland.


ISSUE 2 2010


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