Retail credentials

Online retail is leading to reduced consignment sizes and is fast paced. Given that the pallet network model is most effective when operating at high capacity, how can pallet networks adapt while keeping the model cost effective?

Pall-Ex MD Adrian Russell says: “Pall-Ex does not need to alter its service in order to quickly deliver small consignments. Our UK and European network specialises in transporting consignments of one to six pallets, where there is a high frequency of small drops over large geographical areas. 

“Small freight consignments and rapid deployment are our core strengths, and we have been delivering this service for more than ten years.

“We deliver a flexible, rapid service, specialising in next-day deliveries with a range of value-added services such as book-ins, timed deliveries, out-of-hours deliveries and through-the-night services within the M25 area.

“Further boosting our capacity to serve the online and high street retail markets, Pall-Ex specialises in the delivery of Euro, quarter, and half-sized pallets; meaning that space in our vehicles is better utilised, and increased flexibility is available to our customers with their fluctuating needs. To the further benefit of our customers, movement of these smaller-sized pallets is incentivised, adding cost-savings to our flexible service.”

Pall-Ex is looking to develop value added services. It has implemented the Pall-Ex Eco Drive within the network. This is an environmentally-friendly offering which sees Pall-Ex members collecting waste cardboard and plastic packaging for recycling, at the same time as collecting and delivering palletised goods on behalf of the network’s customers. This reduces operating costs and on-site traffic for our customers, creating long-term sustainable solutions to improve everybody’s green credentials.

Pall-Ex often engages with ad hoc ‘pick and pack’, order fulfillment and distribution requirements according to its customers’ needs. In addition, Pall-Ex is operating an increasing number of home deliveries for its corporate clients. It is Pall-Ex’s policy to tailor a bespoke service and to add value wherever possible in order to adapt to the demands of an evolving marketplace.

Russell explains: “Pall-Ex’s Retail Plus service has continued to establish itself as a growing component of our service portfolio. Benefits include home deliveries, timed deliveries into retail outlets outside of trading hours, the de-palletisation of goods and the removal of packaging. Retailers have 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.”

Biggest bugbear

Member hauliers of Pall-Ex have overwhelmingly railed against the rising costs of fuel as a major sticking point for the logistics industry.

In a survey that the network issued to each of its UK members, every response but one highlighted fuel costs as the first area they would like to see addressed in 2014 – which CEO Hilary Devey has branded “crucial”.

The Fuel Duty rate of 58p per litre represents a significant bulk in the costs of running a haulage business, with diesel for some costing up to £450 per lorry every day. 

“I’m not at all surprised that fuel came up as such a major sticking point for our members,” Hilary commented. 

“Transport is the foundation of a strong infrastructure. Whether personal journeys or commercial haulage, road transport leads to more money spent elsewhere in the economy. If the costs of products and services are reduced as a result of cheaper transport, the economic benefits are enhanced.

“Meanwhile, if those transport businesses that are in a tight spot now were given a break by way of a reduction in fuel costs, then their survival and the employment of their workers is good news for both the national and regional economies, and the logistics sector as a whole.”