The French connection
June 1st 2009 Few firms declare bullish growth ambitions these days. Fortec, however, aims to double its revenues by 2011. A big ask? Acting MD, Neil Hodgson, doesn't think so. Brendan Coyne reports
Fortec has spent the last few years, indeed its entire existence, building and honing its network and operations. The firm now has 66 depots operated by 60 licensees achieving 99 per cent on time or above. Last year the company launched a 24 hour service into Dublin and Belfast. This year it introduced quarter pallet services, and cut its economy timeslot from 72 hours to 48 hours. "We're renowned for service," claims acting MD, Neil Hodgson. Now he says the time has come to shout about it.
Backed by Geodis (the global logistics giant with 25,000 employees and €4.8bn revenues in 2007), around half of that growth will come from its parent company in France, plus more corporate account business. In fact, according to Hodgson, Geodis is considering replicating the Fortec model on home turf and beyond. While the firm has historically sub-contracted one and two pallet business, it has the volume to make a pallet network viable and is currently testing the model in northern France. "We could become the UK arm of a pan-European pallet network that delivers 99 per cent on time across the continent," he says. "There aren't pallet networks per se in Europe, so the French have a great interest in this business." For Fortec members and their customers, claims Hodgson, that interest is paying dividends.
"There is business out there that will move for service: it is not all about cost; we will not chase volume for volume's sake. Pallet networks have traditionally missed out on [higher value goods] business because of inconsistency. We have achieved 99 per cent plus on time deliveries every month this year and our damage claims stand at 0.039 per cent. So we're not competing [against other networks] on the same footing. People will pay a higher price to get that service, but they also want added value. We can integrate with their systems to cut out layers of data entry and manual labour cost – saving time, money and removing potential for error. Very often [winning new business] comes down to what we can do further back the chain."
For the front end of the chain, the firm is spending £750,000 on a bespoke IT system (from Traderman) which will be up and running by the year-end. "We haven't asked members to contribute towards that IT investment; it is self-funded by our parent," Hodgson says. With some 120 people in Geodis' Paris IT department, it's also fair to say the system will benefit from rigorous testing.
Once in place, Hodgson says the new IT system will give users slicker, up-to-theminute reporting, while more detailed realtime information will increase network agility. He says members have been made aware of Fortec's intention to ensure PODs for all time deliveries are available online within two hours.
However, Hodgson is keen to emphasise that Fortec isn't a 'members have been made aware' company: "We're not dictatorial: it's one man, one vote at our meetings, and members drive the changes – such as adding quarter pallets and relaxing our stance on pallet dimensions," he says. "It's not difficult, you don't have to reinvent wheel, just create a 'can do' culture, develop solid partnerships and look to get a long-term benefit. Some of the rates bandied around are not sustainable: somebody somewhere isn't making any money. But we don't need to get into that because there is good business around – and Fortec means business."
The firm's 2011 financial results will prove the veracity of that statement. More articles from Fortec Pallet Distribution Network: | 
