SHARING THE WEALTH
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Pall-Ex is 100% owned by chief executive Hilary Devey, with network members typically paying a quarterly fee, which includes charges for IT and marketing support from the central hub.
Russell says that while the current business model is robust and successful it’s “Hilary’s wish, her desire, to leave a legacy, and for that to include the membership. They are stakeholders in the business and that needs to be recognised going forward under what ever ownership structure”.
While there is no plan for Devey to retire, a health scare she suffered two years ago led to a renewed focus on succession planning and an ongoing discussion about what a future Pall-Ex might look like.
He believes that the need for those in a network to commit more time and resources to maximise their membership in a mature market, has created a desire “to be able to gain greater resilience in that relationship by a sense of ownership, and I think we have to respond to that”.
That might mean a future where network members become shareholders akin to the model used by some rivals, although whether this would mean full ownership, such as in the case of the first ever pallet network Palletline, remains to be seen.