The Pall-Experience
October 1st 2004 Year on year growth of around 35% is no mean feat in today’s competitive distribution sector, but that is what Pall-Ex has achieved under the guidance of founder and managing director, Hilary Devey (pictured right). Charlotte Stonestreet visited the company’s award winning hub to find out what makes this palletised freight network stand out from the crowd
Next time you make a journey of any length on the motorway, take a moment to absorb the liveries on a few of the trucks that you come across. The chances are that among them you will see the distinctive silver trailer of a Pall-Ex network member. Since it was formed in 1996 by managing director Hilary Devey, Pall-Ex has achieved growth of around 35% each year. It now has 93 haulage company members operating over 6000 vehicles – so it’s no wonder they are now becoming a familiar site on Britain’s roads.
With a background that includes key roles at Tibbett and Britten and Scorpio, part of the United Carrier network, as well as seven years in TNT’s retail distribution sector, Devey recognised the need to provide reliable economic distribution of small pallet consignments, where previously only full load and parcel services had been offered.
According to Devey, the potential market for the kind of service provided by Pall-Ex had always been there, it’s just that companies had not realised that overnight delivery of smaller palletised loads was a possibility. In fact, she likens the development of palletised freight networks in the UK to the development of parcel services before it – once companies realise the benefits, especially in fulfiling the demands of just-intime operations, they are quick to take up the service.
Pall-Ex operates from a 200,000ft2 hub that is centrally sited two miles off junction 22 of the M1 in Leicestershire. UK members of the network are each assigned a zone according to where they are located, from which they collect and deliver numerous small pallet load consignments. Having collected freight from their zone, the members transport it to the hub at a set time each night. Here the pallets are unloaded and placed in the area allocated for the appropriate destination depot.
Vehicles are then reloaded with pallets for delivery in their own zone.
Cost savings
By consolidating full loads of small pallet consignments and using the hub as a central drop off and collection point, huge cost savings are possible for the members and consequently the users of the network.
Vehicles that drop off at the hub also leave with a full load so they do not have to make any empty return journeys. Not only does this make economic sense, it is also environmentally advantageous.
Although each member has their own specific zone, the set up of the network is such that if one haulier is under particular pressure, another member from the near vicinity will work with them to alleviate the problem. Companies that would have traditionally been in direct competition now find themselves working together for the benefit of all.
The busiest time for the hub is from around 7.30 in the evening to 4.00 in the morning, by which point on a typical night around 9500 pallets will have been moved.
Unlike older, more traditional drive-through hubs, which resemble giant bus shelters and tend to lack adequate airflow, the purpose built Pall-Ex hub has been specially designed to be a ‘traffic free zone’. No LGVs enter the building and all loading and unloading takes place under specially constructed side canopies, that provide easy access to the 21 doors on each side of the structure. This improves health and safety standards across the site and eliminates the problem of fumes from the vehicles entering the hub.
In recognition of its ground breaking new hub, the company has just scooped the top accolade in the Warehouse Innovation category of the Motor Transport Supply Chain Awards for the hub. It was also ‘highly commended’ in the Environment Category.
Security at the hub is of paramount importance. All vehicles entering and exiting the site are closely monitored and loads are accurately scanned by a team of operatives in a dedicated area before entering the main hub. An accurate record is kept of all goods coming into and going out of the facility. As pedestrians are only allowed in dedicated walkways, opportunity for any would-be thieves to access the consignments is greatly reduced. There is also a CCTV camera over each door. For even more peace of mind, Pall-Ex offers a special high security service, where freight of particular value is specifically checked and signed in and out by a supervisor.
The materials handling equipment used at the site is vital to its efficient operation.
Carrying on the environmentally aware philosophy, Pall-Ex has purchased the largest single location fleet of CNG (compressed natural gas) powered forklift trucks in the UK.
Supplied by Barloworld Handling, the trucks do not produce any toxic fumes, eliminating pollution and providing a cleaner, safer environment for employees and products.
The reliability of the fleet is ensured by a Barloworld engineer being permanently on site to provide on-going maintenance.
Operating a clean, soot-free hub also has clear advantages when it comes to attracting business. Unlike some of its competitors, Pall-Ex is able to offer a service for almost any type of product as there is no risk of contamination. Considering its enormous nightly throughput, when I visited the hub it was remarkably clean – and I’m sure this wasn’t just for my benefit! – and contained loads ranging from bottled water to drain covers. There were even consignments of foodstuffs and fresh flowers, something that would not be possible in a less well designed facility. In fact, the clean environment in the hub has helped Pall-Ex pick up numerous prestigious customers in the retail sector such as ASDA and B&Q.
Meeting unexpected demands
As most of the members of the network are regional companies, without Pall-Ex they would probably not be able to secure the business of many of the major customers that now put work their way. Large corporate contracts require considerable administration, planning and contact, which many of the members would not be in a position to provide. They may also not have the resources to adequately react to unexpected demands, for example, delivering a new product range to stores across the country within 24hrs. However, all the administration and customer service is handled by Pall-Ex. And having 93 members to call on, each of which has at least 30 vehicles, Pall-Ex has never been unable to meet any customer requirement, however demanding or last minute.
As you would expect, it takes a special kind of IT system to keep such a multifaceted company running smoothly. Rather than rely on any of the systems commercially available, Pall-Ex was the first in the sector to develop and implement its own bespoke software for transport management. This means the company can be sure the system will always be geared up to handle every bit of the Pall-Ex market and meet all business needs precisely. As this developed and expertise was gained, the company launched its own IT service company. As well as ensuring the Pall-Ex software and communications system stays bang up to date, Pall-IT provides a full range of hardware, software, maintenance and training services to the parent company, network members and corporate customers.
Although the majority of Pall-Ex’s business is still centred around its core one to three pallet load UK service, the company also offers other packages to provide its customers with flexibility and choice. In one example of this, Pall-Ex runs the UK distribution sector of SAF Welding Equipment, part of the French Air Liquide group, providing a pick and pack service and rapid distribution from a separate, 28,000ft2 facility. It also provides pick and pack services for Topps Tiles and garden equipment supplier, Selective Market Place, from its main hub.
Europe-wide service
As a result of a strategic alliance with Hellmann Worldwide Logistics, Pall-Ex Europe provides a Europe-wide service for partial or full pallets, five nights per week.
From the Pall-Ex hub, pallets are transported for onward delivery to a European gateway hub in Niederaula, 110km northeast of Frankfurt, from where they are delivered to final European destinations.
Another new service, Multi-Pall, provides favourable rates for those who have consignments above three pallets. Since the launch of Multi-Pall five months ago, Pall-Ex has seen considerable growth in multiple pallet volume. The service has been launched partly in response to the Working Time Directive that will be introduced in 2005. The company foresees that the impact on drivers’ hours will lead to a shortage of drivers and the need to further cut costs for many hauliers. As a result, Pall-Ex expects to see even more take up of its Multi-Pall service once the Directive comes into force.
In order to keep up with growing demand and the increasing range of services it offers, Pall-Ex plans another purpose-built hub in the near future. At the time of writing, the final location had not been decided on, but it will be strategically placed to serve the network, its members and its customers. In another forward-thinking move, Devey also intends to set up a separate network dedicated to the specialist movement of hazardous goods, so expect to hear about more developments in the near future More articles from Pall-Ex UK Ltd: | 
