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Simon Hazelgrove draws on his army experience to ensure that United Pallet Network (UPN) stays out of the firing line.
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He talks strategy with Dylan Gray.
The pallet network business has become a fiercely contested battleground. Ex-soldier Simon Hazelgrove, now sales director at United Pallet Network (UPN), is confident that continued advancement will win out over entrenched views and technologies.
After leaving the army Hazelgrove became a truck driver before taking up his current position at UPN. He firmly believes his experiences continue to stand him in good stead. "My past certainly helps in my current job, as I have a good understanding from a driver's point of view — the college of life," he explains.
Hazelgrove also spent nine years as deputy managing director of UK Pallets and says the knowledge he acquired in this time was key to his current company's strategy: "Ensuring the quality of our members goes back to the experience I gained over that nine-year period."
He is certainly confident about UPN's service: "Our strategy is to ensure that we are seen in the market place as a provider of quality in the pallet sector instead ofjust volume."
UPN's network covers the entire UK and is linked to Europe through the RH Group. The network is in a growth period and aims to be proactive. "We have a model called 'full to earth'. We predict our growth, which gives us a drop density into key areas of the UK. We can then approach a member within six months prior to this happening, say 'this is where we see ourselves and ask whether they are able to cope with the growth.
"If not, we will reduce their areas to ensure we retain the quality of our service," he says.
The operators that have met the quality requirements will be reaping the rewards from UPN's new IT system, which Hazelgrove says is unique in the pallet industry. -All our members are on a live web-based system and we've also launched live XDA signature capture, which provides real-time proof of delivery," he says.
Live online system
"it enables the member or the member's clients to go online and see when their pallet has been delivered. We supply the members with the software for any XDA service provider, eg Vodafone or Orange. This is so our members aren't forced onto a particular network to comply with our system.
"Members of other networks are attracted by this, with four new members due to join us in the near future. As far as I'm aware, none of our competitors is providing a live system, which we believe is a huge incentive for non-members to join.
With this system in place. Hazelgrove explains that members are able to route their freight earlier and more accurately: "Our live vvebsite is key in our members' day-to-day jobs. The live feeds help them deal with resources more accurately and should therefore give them an advantage."
As mentioned earlier, UPN is currently in a growth period. Part of this growth is the expansion of its national distribution centre in Melton Mowbray, Leicestershire. from 9,300m2 Lo 15,300m2.
"We've completed phase one," Hazelgrove explains. -We've extended the trailer park and put the one-way system in place. The rest of the project should be completed by September." When questioned about possible space issues, hesays: -At our location there are no such issues. It's a big site with around 20 acres of space." UPN is not only upgrading its technology and expanding its site. it is also increasing its marketing. The network will be offering 25% of its shares to members that match certain criteria. Hazelgrove says: "We're in the middle of sorting out the legalities right now, but hope to have the scheme on its way at the end of the first quarter, "Members that receive the shares will be adding our livery and branding to their trucks and trailers."
When asked about whether there would be any incentives to run clean trucks, Hazelgrove says: As we have a strict vetting process in the first place with our members, we've already made sure they have the right vehicle and the right fleet."
Members will also be pleased about the company's 'cashback' incentive scheme. "Members who do well and stick to their timetable will ultimately be rewarded with a cheque at the end of the year. I.ast year we paid out 125,000 to members that achieved their targets," he says.
UPN currently has 64 members and predicts that it will increase that figure to 80 over the next 12 months with a 30% rise in volume. On average, it deals with as many as 2,000 pallets per night. But it isn't content to stand still; there are always battles to win and ground to cover.
"In around five years' time I see us undertaking a relocation to somewhere more central," Hazelgrove concludes. "The main thing, though, is to still be recognised as a quality provider."
The crowded pallet network sector has not stopped attracting combatants. Next month another network enters the fray-Global Pallet Systems (GPS). Hazelgrove is circumspect about their prospects. "Setting up a new UKwide pallet network from scratch is very hard and they may find it difficult," he says. "But I wish them all the best," •