PALLETS\\\ Frontier spirit


Popularly known for her appearances in the Dragon’s Den TV series, Hilary Devey is still very hands-on at the business she created 20 years ago. But the pallet business is changing – from being a purely domestic operation, the Continent now accounts for over half of Pall-Ex’s operation.


several other partners, which will see us moving into new territories throughout 2017. Establishing a new European


network takes time though. It’s not as simple as parachuting in a team to impose an exact replica of the way we do things in the UK and hoping for the best. It just doesn’t work that way and it would be naïve to think it does. We’ve been successful as we


How much do you see pallets becoming an international as opposed to a UK domestic business? Without a shadow of a doubt, the future of all pallet networks is international. There’s massive growth potential across the Continent to offer a full pan- European service, which obviously benefits companies in the UK too. The European market now for 50% of our total


accounts


volumes and it’s growing. We currently have networks in Italy, Spain, Portugal, France, Romania and the Benelux nations and we’re also in final negotiations with


take time to appoint a principal national haulage partner to run each new network. They have the expert domestic knowledge that’s crucial when starting a new business from scratch as it allows us to tweak the model. They work together with a dedicated team here in the UK, who shares their expertise to recruit members and launch the network. Our UK members have enjoyed


growth from our expansion as well. Through services like Pall-Ex Connect, members are able to offer their own customers a European service.


Has Brexit changed perceptions of international business at all?


I don’t think anyone knows the answer to that question at the moment and that’s part of the problem. As a country, we’re currently in a state of limbo. I’ve never been one to shy


away from an opinion and I’ve made it very clear that I thought we would be better off remaining part of the EU. In fact, I was the small business champion for the Britain Stronger in Campaign. I stand firm in my belief


that the UK’s supply chain will be deeply affected by the referendum outcome. However, it’s hard to nail your colours to the mast and say exactly what will happen as there’s so little detail available. All I can say is that, as a country,


we now enter a crucial period of negotiation regarding the terms of our exit. The Government has a tricky task ahead and I urge them to listen to the concerns of businesses across the country. Despite the uncertainty,


Pall-Ex members should feel reassured to be part of a network that is determined to succeed together. We’re more focused


Hellmann provides the European connection for Pallet-Track


Pallet networks started out in the UK, but the concept has been exported to some other countries as a domestic service and there is a certain amount of cross-border traffic to or from the UK and other countries or between other foreign countries. But could they ever see non-UK


business growing to the point that it will overtake domestic business, FBJ asked Nigel Parkes, founder and managing director of leading operator, Pallet-Track. “Pallet networks are developing Europe


in as a cost-effective


alternative to traditional logistics, but I would argue that they are, and will, remain a predominantly UK animal,” he replied. “This is


simply based upon topographical and geographical issues specific to the UK landscape. Hub and spoke operations work cost-effectively on smaller stretches into central hubs and out again. Conversely, multi- modal operations work well in Europe where long journeys from northern Europe into the south can be best managed by rail and waterway in a manner that could not be scalable or cost-effective in the UK.” However: “Pallet-Track plays


to these strengths by engaging a pan European partner – Hellmann Worldwide Logistics – to operate its requirements in Europe. It has both the multi-modal infrastructure and the experience to successfully


operate across Europe and, as a shareholder member, we manage reciprocal business for Hellmann in the UK.” But has Brexit changed


perceptions of international business at all? “Brexit will undoubtedly change perceptions of international business if the UK fails to re-negotiate membership of the single market and has to go about negotiating deals with 27 member countries. However, Europe will always want to trade with the UK and vice-versa so, in terms of the continuation of commerce, it will largely be business as usual, unless you are a politician.” This is the position of both Pallet-Track and Hellmann,


Issue 1 2017 - Freight Business Journal


than ever on a quality service and we’re in a strong position to embrace whatever change is around the corner.


As far as international business is concerned, what are Pall-Ex’s plans for future services and development? A big part of our 2016 strategy has been about investing in quality in the UK. The industry was starting to driſt down the same road as the parcels sector with widespread price undercutting. That had to stop as it was putting a massive strain on hauliers. We’ve been bold and limited


growth to create a quality service that people would be willing to pay more for. The ultimate aim was to help drive prices up across the sector, which is starting to work. It’s been achieved by restructuring our hub teams, focusing on customer care and investing more into training and development. With a newly established


centre of excellence here in the UK, the next step is to roll these new standards out across Europe


to strengthen our


existing networks and attract new partners.


To what extent does the ability to offer international services influence Pall-Ex’s choice of members? We recruit members to service designated postcode areas, so ultimately it’s having the capacity and capability in that particular area that’s key. On a wider level, our


expanding European coverage means that all members are


Nigel Parkes adds. Pallet-Track will continue


its European relationship with Hellmann. If the forwarder opens new hubs or services, “I am sure Pallet-Track members trading in Europe will be key beneficiaries. However, we do not plan any other additional infrastructure or service investments in Europe.” Back in the UK, the pallet market


“has reached an interesting point of maturity. It has been 25 years since the first network members started in business and we have seen a lot of change and consolidation in that time. There has been an over-emphasis, in my opinion, on volume which has been at the expense of sustainable business. Profitable service-driven members are key to a successful Network. Pallet-Track holds to its view that sticking at what we are good at is the best strategy. We believe in


being service led and customer- centric which has worked for us for the last 12 years and I am sure will continue to do so.” Finally, what effect has the


growth of business to consumer business had on the pallet business? Has it changed the business model in any way? “Yes and no. All pallet networks


have or are looking at domestic kerbside delivery in line with the consumer love affair with omni-


channel shopping. This is because it is the final mile that provides the major challenge. However, to say any of the networks is there yet would be to over-simplify a complex picture. Successful delivery depends upon customer education and a realistic charging structure to make it both achievable and sustainable. Only then will we see added value solutions coming to the market from both existing carriers and the networks.”


able to provide a wider service offering to their own customers, so it’s particularly beneficial for those with international growth aspirations.


Is the growth of business to consumer business having any effect on the pallet business (international or domestic)? Has it changed the business model in any way? Obviously the retail market has changed dramatically and that’s why we introduced dedicated services such as Retail Plus+. It’s more reflective of the pressure on retailers to hold less stock and the focus on ‘just in time’ deliveries. The growth of B2C has had a


massive impact on technology too. Up until fairly recently, the pallet sector was ridiculously paper heavy, but that’s all changed. As consumers, we’ve all become focused on mobile-apps and a more digital approach. That means our industry had to change as end-customers want to know precisely where their pallet is and when it’s going to arrive. Instant visibility is essential and therefore real-time POD, digital signature capture and tracking apps are now the norm. One area that no network has


cracked yet is the home delivery market. We’ve made inroads but I definitely think that the growth potential is enormous.


Any other developments? Last year (2016) was a big year for us as we celebrated our 20th anniversary. It’s been quite a journey from having that initial


21


idea all those years ago to where we are today. On that first night we moved 117 pallets, now it’s more like 10,000 in the UK alone. Much has changed, though


the core concept of the ‘hub and spoke’ model remains the same. It has always been about eliminating ‘empty journeys’ and if you take the fact our current fill-rate is 97.6%, it’s obvious the model is still commercially viable for hauliers, end customers and the environment too. We’ve had events to mark


the anniversary throughout the year and it culminated with the Pall-Ex Dinner Dance and Awards at Celtic Manor back in November. As much as this year has about


been looking back


and celebrating, we are also looking ahead too. In the past few months, we’ve announced a number of exciting new senior appointments. These include Chris Holland, former IT business solutions manager at XPO Logistics, joining as director of IT, and Mark Steel being appointed director of sales and marketing, having previously experienced the network as sales director at member


haulier Premier


Logistics. Adrian Bradley also joins as director of operations, having previously worked for the likes of UPS and Fortec Distribution Network. I’ve also been asked a lot


about my own role this year. It’s safe to say I’m as involved and as determined as ever. I’m not about to hang up my hat...


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24