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Planning for the future

11th December 2008
Page 20
Page 20, 11th December 2008 — Planning for the future
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Which of the following most accurately describes the problem?

Keywords : Packaging, Pallet, Pall-ex

Palletline opened the gates on its new hub just a few weeks ago. CM went to Birmingham to see what the future holds for pallet distribution, and heard some stark predictions for the industry.

Words: Christopher Walton IN OCTOBER Palletline opened the doors of its 15-acre site just off J6 of the M42 in Solihull.

It marked a major shift for the firm, moving from its old hub of Tyburn Road (on the A38 just off the M6), but also showed the strain pallet networks are under to deliver the best of operations.

The facility, which CM toured recently, has the capacity to process 25,000 pallets every 24 hours (the most it ever handled at Tyburn Road was 10,500). The hub is 180,000ft2, with a 30,000ft2 quality control checkpoint. The site also boasts 150 CCTV cameras, 100 trailer parking slots, 45 forklifts,22 doors, two on-site canteens, and a drive-on weighbridge.

Pushing the boundaries

The site was previously leased to Land Rover, but it became available and Palletline's managing director, Kevin Buchanan. was quick to grab the lease.

-This is the future for Palletline," says Buchanana "We've moved to this great facility; we have the best membership and we have increased our investment in technology. We keep pushing the boundaries to be the best; and this gives us the edge over our competitors."

While the likes of Pall-Ex. Palletforce and Palletways (among others) may object, Buchannan's statement is an illustration of the need for the pallet networks to offer the very best to their members, or face losing them altogether. And with freight volumes at a premium in these economically testing times, you have to fight for all you can get. "Some networks have moved to bigger hubs but are doing smaller volumes. They will probably increase their hub fees," reckons Buchanan, but he has had to put a "small increase" on his own hub fees as part of the move.

Next quarter will also see volume growth incentives for members putting more pallets through the hubs. It is all part of an initiative not just to keep volumes high, but also to make sure members stay as part of the network.

Mark Pulford, operations director at Palletline, says; "Next year there'll be a lot of chopping between the networks."

Buchanan agrees the current line-up of pallet networks in the UK might not all endure 2009. He adds: "Only the strong will survive. A few of the smaller ones might be on the verge because the volumes aren't that great." Not that next year will mean a land grab for network members who find themselves without a network.

Buchanan thinks the network can take an optimum 85 members, and with current membership touching 80. Palletline can afford to be picky. "There are lots of people approaching us all the time to join Palletline," says Buchanan, -Someone wanted to join us who was doing 2,000 pallets a week. We had to say sorry you are not the right culture for Palletline. But if a smaller company comes to us that has the right ethos, that could take us up to 85 members."

Expanding City 24

Next year will also see the expansion of its freight consolidation centre service, City 24. The concept has been tested in Norwich by member Foulger Transport, which has a consolidation centre contract with Norfolk County Council.

Buchanan is now on the hunt for Palletline members to pitch the City 24 service to. It targets towns and cities not built to handle trucks for deliveries by offering seasonal demand stockholding, breakbullc, pick-and-pack and pre-retail services, alongside dry packaging waste and recycling.

"City 24 is really extending city hubs. Some places, such as London, can't have deliveries without parking tickets," Buchanan says, adding that the cost of an evening delivery could be half the price of a PCN.

With 2009 promising to be a choppy year for the industry's pallet networks, some common-sense planning in every level of the business should pay off. •


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