Network choices
October 1st 2006

As PalletFORCE celebrates five years of operation, the company's marketing and business development manager, Trevor Mudd, outlines the factors that end users need to consider when choosing a palletised distribution network

Palletised distribution has been one of the logistics industry's biggest success stories in recent years, with established players joined by a number of new operators. The growth of the market as a whole is reflected by PalletFORCE, which celebrates its fifth anniversary in 2006. Since August 2001, when 560 pallets were handled from 36 Member Depots, PalletFORCE now handles around 6000 per night (with the capability to handle twice that) and has more than doubled its number of Member Depots to 80.

To many end users, it must seem that all they need do to enjoy the fruits of palletised distribution is to choose a haulier aligned with a network. Yet it is vital to research the relative strengths of different operators before committing goods to their members.

After all, every network prides itself on offering the best value for money, unrivalled service and a real point of differentiation from its rivals – surely they can't all be right?

For end users requiring nationwide distribution, it is imperative that the hauliers they work with belong to strong, stable networks, who have members in all destinations to which goods are delivered.

The implications of entrusting goods to a network whose service levels are affected by gaps in coverage do not bear thinking about.

PalletFORCE's member retention is second to none, having never lost a single depot to the other networks, whilst attracting more than 30 of its members from competing networks. Recently, PalletFORCE has embarked upon a programme of network consolidation, to further assist Members in providing better coverage to end users by tightening the geographical areas dealt with by each individual Member.

Service quality Quality of service is a crucial consideration.

By the very nature of palletised distribution, customers put their trust in hauliers with whom they have no direct relationship, so they must feel confident that the network as a whole shares the same values as its local operator.

Pickle manufacturer James Ross & Son is one company to benefit from the consistent standard of service across the PalletFORCE Network. At the beginning of 2005, the company gave sole distribution contract to Durham-based Katem Hire. The Depot's proximity to James Ross' production facility enables the swift collection of orders, whilst its membership of PalletFORCE provides a fast and effective method of transporting goods nationwide via other member depots.

"The use of Katem Hire and PalletFORCE has provided us with efficient, one-stop logistics," comments Bill Marley, operations director of James Ross & Son.

Katem Hire also benefits from its membership of PalletFORCE, as sales and operations director Trevor Jackson explains.

"Being part of PalletFORCE is a huge boost to securing national contracts such as James Ross. The strength and integrity of the Network gives us absolute confidence that all deliveries will arrive safely and on-time." Nonetheless, service means more than getting pallets from A to B. Increasingly, as competition intensifies, networks seek to offer 'added value' to members and their customers, and the breadth and quality of services is likely to evolve.

Added value can take many forms, but it does not emerge from a vacuum. A network that is serious about keeping ahead will devote considerable resources to continuous improvement, and it is worth paying attention to which networks are actively investing in new facilities and technology.

A member's relationship with its customers depends on delivering pallets ontime and in good condition, and the hub changeover is pivotal to successful fulfilment of orders. PalletFORCE has recently installed an advanced checkweighing system at our Lichfield hub for increased accuracy and safety for pallet loading. Supplied by Avery Weigh-Tronix, the system enables our operators to make informed decisions about pallet loading to protect against overloaded or unbalanced trucks.

Track & trace Track & trace is becoming an increasingly popular means of adding value, as it provides an ideal means of maximising confidence that goods are going exactly where they should. Over the past year, PalletFORCE has made significant investment in a state-of-the-art IT system, pinpoint, that registers every pallet with a unique identification, through which customers can access real-time track & trace information via the pinpoint website.

There will of course be other opportunities to add value by utilising the shared capabilities of a network; only time – and extensive communication – will determine what these opportunities will be.

What is essential is that the network is exploring them.

In short, the end user looking to benefit from the convenience and efficiency of palletised distribution should look not only to growth as a barometer of success, but also to consolidation and diversification. It is those networks that can offer something extra that will be able to thrive in this competitive market.

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