Taking the high road
March 1st 2010 Fortec Pallet is targeting high-end freight
and has boosted operational visibility in
a bid to gain an advantage, reports
Simon Duddy
With the backing of multinational logistics giant Geodis
(revenues of 5.2 billion euros in 2008), Fortec Pallet is
aiming to build on the growth it has experienced in
the last nine months.
The firm, with 65 licensees, 1.8million square feet of
warehouse space and a fleet of more than 1,000 vehicles operated
by experienced independent carriers, says it is well poised, with
some members showing strong performance and with the
prospect of growth through acquisitions.
"There are a lot of synergies between Fortec and Geodis,
which is on the acquisition trail to
support the group in the UK," says
Fortec Pallet md Neil Hodgson. "A
closer relationship between Fortec and
Geodis is bringing increased
commercial value."
Fortec is hoping to leverage alliances
delivered by the parent company, such
as that announced with parcels
operator APC Overnight in October.
Under the deal, APC Overnight's 125
UK depots will have access to the Fortec network enabling them
to offer a UK and Ireland overnight pallet distribution product.
In addition the two organisations will work together to enable
APC to offer a full European service for parcels and pallets.
"lt is early days, but with this alliance we can move anything
from a jiffy bag to a full load," says Hodgson. He adds the
superior visibility provided by Fortec is key to this deal.
"Traditionally there is not the level of visibility in the pallet
network which you would have in the parcels business.With our
new IT system, we can demonstrate high levels of service to our
customers."
The IT system – ForTrack – was developed by Traderman
Systems specifically for Fortec. It takes care of orders, tracking
consignments, and obtaining proof of delivery. The systems
allows customers to obtain detailed reporting in accordance with
their own KPIs.
Innovation within Geodis also encompasses a central
telemarketing unit in the UK that has been set up to serve all
parts of the operation.
Hodgson believes the backing of Geodis means Fortec will
make further headway into corporate accounts.
"Corporate accounts in some networks are seen as taboo
because it creates volume for the centre and guys at sharp end get
paid less in some cases.
"Corporate for us will be where we will look at taking an
account onboard direct because a local guy doesn't want to be
financially exposed. As we are part of Geodis, cash flow is not
such an issue for us."
Hodgson is keen to stress that service is his key priority, with
Fortec not looking to ship 'ugly freight' and
very much targeting the higher value end of
the market. Geodis in France has a successful
wine and spirits logistics division, for
example, and this is a vertical Fortec is keen
to build on in the UK.
"We are making a concerted effort in
vertical markets and high value freight.We
have invested in commercial intelligence to
support the network to get into accounts
that have a good fit for us."
Hodgson realises to deliver this he needs to keep the bar high.
"The minimum expectation in the network two years ago was
98% on time. For me, that's not express. So we said to the
network - we're going to raise the bar, we want it at 99%,
minimum."
While focusing on service and high quality freight, Hodgson is
confident Fortec will see considerable volume growth in the
coming years by utilising the relationships brought by its parent
company. "We want to be seen as the best service provider.We
won't carry the most freight but put us together with other parts
of the Geodis group and we can
move anything, anywhere." More articles from Fortec Distribution Network Ltd: | 
