All systems go
June 1st 2007

Implementing operational change in the pallet distribution sector isn't easy: members size, ethos and relationship with the 'centre' can vary drastically. Palletline MD, Glyn Jones, says the answer is an open approach that allows members to use their own in-house systems

Driving forward operational changes in an organisation is never easy but the potential for problems can be magnified when those changes affect member companies across the UK whose size and relationship with the 'centre' can vary drastically.

The pallet distribution sector is a prime example of this, with a number of networks, each with its own ethos, and dozens of members in each for whom pallet freight may constitute virtually all of their work, or just a tiny proportion.

The companies themselves vary too – from large multi-site operations with huge fleets to smaller, family-owned concerns with only a few vehicles.

Finding solutions which cater for all of their needs yet still offer operational and competitive advantages for the network and its end users is therefore a tricky task.

Birmingham-based pallet distribution network, Palletline, has developed its own solution.

"Palletline was established in 1992 as a hub system to allow hauliers to get their pallet freight delivered nationwide," explains managing director, Glyn Jones.

"The network is owned by the members, with each having a share, and ultimately the way Palletline operates is driven by their needs. In many cases, Palletline is almost 'invisible' to the end user – as long as pallets are collected and delivered safely and on time, end users are not concerned who is moving them, how or where they go in-between.

"However, while Palletline has never been operated to maximise profit at the centre, we recognise that to maintain our market-leading position and allow Palletline to offer the best possible service to its members – and therefore to members' customers – there has to be some consistency operationally across the board, in areas such as pallet scanning, IT and POD.

"The varied make-up of our membership means that prescribing and attempting to impose systems simply would not work.

Instead, with traffic systems for example, we have taken an open approach, where members can continue to use their own inhouse systems. What we provide is an open, web-based interface, whereby the members' systems can feed information into, and receive it from Peracto, Palletline's own in-house system.

"As this is web-based, the connectivity is highly flexible, meaning members can log on, input jobs, print labels and so on from anywhere with a web connection. Some members, for example, do their routing for the following day at home in the evenings via laptop, meaning when drivers arrive early the following day at the depot, their loads and routes are already waiting for them. It's also very easy to extend into the members' customers' own systems via implants. Members can even request third party collections and deliveries.

"The other key advantage of this system is that it negates the need for members to maintain one system for their own work and then have to purchase and maintain hardware and software for their Palletline work." The 'open systems' approach has been replicated by Palletline in relation to POD image scanning.

"Once again, we wanted to avoid a scenario where members would have a particular scanning solution imposed on them", continues Jones. "The fact is that many of our members were already scanning PODs so had robust systems already in place. All we therefore needed to do was provide the necessary interfaces to allow members to scan using their own equipment and then transfer this to the Peracto system. Customers can then view this as soon as it has been uploaded." He adds: "Ultimately, our role as a network is to support the members in their relationships with their customers. There is no point implementing a new system just because we can – there has to be value in it for our members. The way we have implemented this type of change has been successful for both Palletline and its members and it's a model we will continue to employ."

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