Niche spotting at UPN
March 1st 2010 Taking the time to spot and exploit
niches has spearheaded a push by UPN
allowing the pallet network to grow
despite the recession engulfing the
market, reports Simon Duddy
Despite a difficult start to 2009 UPN is confident that
strong growth from the second half of last year is
bucking the trend in the pallet network market.
Director David Brown says like most networks, UPN
experienced no real growth in the first half of 2009 but did see a
turnaround in the second half of the year, with double digit
expansion kicking in towards the back end of the year.
"In January and February of this year, we have seen double
digit growth compared to this time last year, so we're forecasting
9% up based on volume and 10% up on revenue for the financial
year ending in March on the previous financial year," adds
Brown.
"We believe there has been a 5% decline in volumes in the
market over this period, so we're bucking the trend there."
In response, UPN is extending its hub and expanding its
workforce. The £250,000 investment in facilities will add 20,000
sq feet and full digital CCTV (with 26 extra cameras and 32
channel DVR). The company anticipates this will accommodate
growth for the next two years.
In addition, a new regional sales force has been recruited
covering the UK, with an internal end-user telesales team
working for members.
"We're looking at niches in the market for a more quality
rather than volume driven proposition," continues Brown. To
that end, UPN has been developing the market between parcel
and pallet freight with micro pallets to take on items too bulky
for parcel companies' automated systems but too small for a
traditional pallet, for example, printers.
"We felt that an additional pricing point for smaller
consignments was an area we could grow," says Brown.
The company has also extended the height limit on its half
pallet from 1m to 2m, accommodating tall and lightweight items
such as freestanding lighting equipment. Freight under 600kg but
up to 2m goes through the UPN system as half a pallet and this
niche has won business for its members, says the network.
UPN also says its efficient pallet services have won it credit
with members' customers. For example, cable tie manufacturer
Davico Industrial praised the reliability of UPN.
Davico sales director Neil Hodson says: "We have worked with
Smallwood Group Logistics (UPN depot 65) for years, mainly for
our sameday deliveries.When it joined UPN, we decided to test
the next day palletised freight service and we have not looked
back.Whether we send one pallet or twenty pallets, we get peace
of mind. The service has been excellent and with success rates
close to 100 per cent."
Brown puts UPN's success, in part, down to IT innovations,
such as a real-time signature capture system. The network moves
2,500 to 3,000 pallets a night and it is confident the systems and
processes are in place to move more freight in the future.
"We want to be proactive.We have real time updates for
members on the web. There are 2D barcodes with full details of
the consignment. The handheld scanners incorporate colour
cameras, so discrepancies can be tagged to a consignment and
that can be visible on the web for the following morning."
For the future, UPN is looking to partner with some of the
larger 3PLs. Brown concludes: "We believe we have a quality
network that would be of value to 3PLs and their customers.We
feel we are in a position where we can compete strongly with our
competitors but we are in no rush.We want to manage our
growth to retain customers and
members." More articles from United Pallet Network (UK) Ltd: | 
