Viva the retail revolution
June 1st 2005 Retailers may have quickly grasped the savings to be had from palletised distribution, but by failing to make full use of the hub system, PalletFORCE says they are missing out on major efficiencies The benefits of palletised distribution have been quickly realised by the fast-moving retail sector – which demands quality and flexibility across the supply chain. Yet PalletFORCE says that by exploiting the advantages offered by the hub system, there is enormous potential for pallet networks to deliver an even better service to retailers.
Palletised networks have become a major success story in road haulage over the last decade offering major advantages to many industries. The current pallet network market handles over 24 million pallets annually and is set to expand still further thanks to the wide range of benefits it offers for fast, cost-effective distribution.
Cost-effective distribution Palletised distribution was introduced during the 1990s, responding to market demand for a cost-effective solution to the quick delivery of small palletised consignments. Adapting a system previously set up by parcel carriers, the new pallet networks operated from a central hub offering companies much greater flexibility in distribution. Smaller loads of up to five pallets could be sent on a nextday service – which was not previously available – and as the networks have matured a wide range of services have been developed to handle any size of consignment: from single pallet deliveries through to larger part loads. Flexible delivery times and daily services to Europe are also offered, in addition to tailor made services such as warehouse and order picking and dedicated vehicles.
According to PalletFORCE, the hub system also offers significant efficiency savings over conventional methods of distribution. Each member depot delivers goods originating from its operational area to the central hub. They then collect goods for delivery to their home area for the return load – a streamlined process which offers a more competitive, profitable distribution service for both members and customers, whilst substantially reducing environmental impact.
Retailers could benefit more Yet retailers are still not using the full potential of the hub and Regional Distribution Centres (RDCs) in particular, operated by the major supermarkets and multiple stores, are missing out according to Mick Scarlett, chief executive of PalletFORCE.
“The hub system means that we can consolidate palletised loads from several different suppliers and deliver to the retailer as one consignment offering an enhanced quality service and substantial cost savings. However, at the moment most retailers are not taking advantage of this streamlined approach and our members are often required to make several deliveries in one day to the same location, which puts pressures on resources all round and is clearly uneconomical, inefficient and not sympathetic to the environment.
“This situation has become commonplace in the industry and we would urge retail chains to consider the benefits of consolidating consignments at the central hub which would revolutionise the industry and offer so many benefits.
“Consolidated bookings would allow retailers to receive and display goods much more quickly and release resources at RDCs which could be used more efficiently. We are keen to progress this issue and would welcome discussions with retailers who would like to benefit from the opportunities on offer.” Rapid Growth PalletFORCE says its commitment to quality and service has seen it expand rapidly since launching in 2001. It is now one of the fastest-growing palletised distribution networks in the UK and mainland Europe, currently offering over 85 strategicallylocated membership depots, more than 3,000 vehicles and over 3million ft2 of warehousing.
Owned by its members, the company is continually expanding. One of its latest developments the acquisition of two warehouses adjacent to its existing central hub in Lichfield, Staffordshire, adding a further 100,000 ft2 of floor space, which brings the total size of PalletFORCE’s site to 220,000 sq. ft.
The company is also increasing activity in Scotland, with a new depot in Glasgow and two well-known new members. Existing member WM Armstrong is opening the depot and has been joined in the network by two new members Gordon Leslie, based near Paisley, and JBT, located in Aberdeen and Inverness, with additional depots on the Shetland and Orkney islands. Coverage in Scotland is completed by one of PalletFORCE’s founder members Glenhire Express, based in Fife.
“We recognise that our presence in Scotland has not been as strong as in the rest of the UK, and it is now time to put this right,” says Scarlett. “This is a major development which will create tremendous opportunities for the network.” “We urge retail chains to consider the benefits of consolidating consignments at the central hub – which would revolutionise the industry and offer so many benefits” More articles from PalletFORCE plc: | 
