PALLETS\\\ Pallets for everyone


Pallet networks have evolved rapidly over the past two decades, but what of the closely-related activity of


pallet pooling? This


seeks to maximise efficiency in the use of the pallets themselves. MAN Everywoman Director


of the Year (2011) and managing director of operator


leading pallet pool LPR Jane Gorick


comments on the trends facing the sector. “The pallet pooling sector in the UK has evolved year on year since we entered the market a decade ago. From a monopoly in the 1990s, we now find ourselves in a highly competitive marketplace, where manufacturers have become used to tendering for their pallet provision. The FMCG supply chain is known to set the benchmark for logistics best practice and, consequently, collaborative practices which see pallet pool operators and manufacturers combining forces to ensure full lorries on delivery and return


journeys have become more commonplace. “Likewise, customer relationships


and account management have grown in importance. In order to foster collaborative relationships, there is a need for trust between all parties – manufacturer, pallet pool operator and logistics provider. Communication and culture have come to the fore – it is no longer about responding to demand, but anticipating what the customer needs, delivering on it and adding value to secure long term relationships. “The other key development


for the industry is its increasing automation. Not only are manufacturers introducing more automated practices at the front of the supply chain, retailers are


also increasingly


automating their distribution centres. Therefore, a more detailed technical discussion is required to ensure the needs of both the FMCG customer and the


Trust is everything, says LPR boss Jane Gorick


retailer are being met, with pallet pool operators focusing their attentions on the quality and maintenance of their pallet as it goes through the supply chain to ensure it meets the robust demands


of the automated


process. “Finally, working around the


Olympic Games and Paralympic Games in London this year will bring a big challenge for the logistics industry. Not only will there be massive pressure on businesses looking to supply large quantities of goods into a small and restricted area, but


there will also be greater vehicle movements and, all the while, the usual standard of service must be kept throughout the rest of the country. “Reverse logistics will be


key to ensuring that pallets do not build up at drop points. Likewise, communication is essential to managing customer relationships. Collaborative practice has become more commonplace and the challenges of summer 2012 will provide the whole


logistics industry with


the opportunity to develop best practice solutions for the future. “


Issue 2 2012


23 Turning up the volume is no solution


Palletline’s managing director Kevin Buchanan sees a clear split emerging between networks that are ‘volume hungry’ and those motivated by something more than a need to shift the maximum number of pallets through their central hubs every night.


“In some ways, Palletline is more


a commercial cooperative rather than just a network,” he says of the Birmingham-based member-owned operation – which he believes was the first such system of its kind when it started 20 years ago. “Our members work together, for example by backloading each other’s full loads, we can offer centralised purchasing – it’s not just about pushing as many pallets through the hub as possible.” These days, Palletline is competing


would have concentrated mainly on multi-million pound contracts, are though chasing smaller and smaller deals, so there is still competition in this area. “A couple of years ago, £½ million would have been considered small potatoes for a DHL, but not any longer.,” says Kevin Buchanan. That said, in many ways he prefers going up against 3PLs “who at least do cost jobs properly and aren’t just chasing volumes” - rather than getting into a head to head fight with some of the other network operators who, he says, are increasingly chasing volumes. The market is still pretty tough


although pallet operators have been buoyed by reasonably good growth in 2010 and 2011; growth has though slowed in 2012. Palletline’s European business


for business with third party logistics companies as much as with the other pallet networks. It offers a less prescriptive approach than some of the 3PLs and has racked up many successes in the contract arena. The 3PLs, who a couple of years ago Continued on page 38


has also been doing well having grown particularly strongly after it was introduced in early 2011. Again, the European service reflects the operator’s main priority to provide a


Stay on


Cleaner, greener distribution Highly efficient timed, next day and economy deliveries Cost-effective rates for full, half and quarter pallets Comprehensive track and trace with online proof of delivery Daily European deliveries Bespoke logistics solutions


Call 0808 144 2808 www.pallex.com


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