Features & Interviews TNB News

Working together: How pallet networks help drive efficiency

18 July 2024 #Features & Interviews #TNB News

Pallet networks are cost-effective and environmentally efficient co-operative organisations made up of hauliers across the UK collaborating to provide next-day freight delivery services, enabling customers to benefit from economies of scale.

As part of the business model, hauliers drop loaded pallets off at huge centrally located hubs and collect more palletised goods to take back to their own areas.

This results in high levels of vehicle capacity utilisation, with current vehicle fill at more than 72%, compared with 51% in some areas of road freight.

For example, hub-and-spoke network Pallet-Track enables West Midlands logistics firm Trailer Freight International (TFI) to work with other independent haulage companies to transport goods nationwide in a more efficient way.

The haulier was established in 1983 operating daily freight services to Northern Ireland and the Republic of Ireland, with two employees and a 5,000 sq. ft warehouse using sub-contracted transport.

It recently invested more than £1m in a move to a new 1.5-acre headquarters in West Bromwich, and has expanded its fleet following a period of rapid growth.

Company director Allan Collins said a huge part of the company’s success is down to its shareholder membership of Pallet-Track, which it joined in September 2021.

He said: “This growth has come off the back of our Pallet-Track membership – our team are doing an excellent job with the Pallet-Track work, and it has really paid off.

“It is testament to how quickly we have grown that we are on the move again less than three years after taking on our last new premises.”

Watford-based haulier Davisoft Freight, meanwhile, joined Fortec as a shareholder member with the aim of strengthening its service offering and continuing its growth within the industry.

Operating out of its warehousing in Kings Langley, Herefordshire, Davisoft Freight covers the WD postcode area for Fortec, whose shareholder membership ensures that all shareholders work to uphold strict quality standards.

By becoming a Fortec member, Davisoft Freight said it has been able to expand its service offering both nationally and internationally, with access to every postcode across the UK and robust international partnerships.

Commercial benefits of joining Fortec have included access to a wide range of pallet sizes and the ability to provide two-hour delivery windows to customers using Pall-Ex Group’s ETA system.

Andreea Stefan, Director at Davisoft Freight, said: “Becoming a shareholder member of Fortec Distribution is a great opportunity for us and means we can align our goals with the long-term success and growth of the network.

“This allows us to contribute to Fortec’s success whilst also benefitting from the operational advantages of a strong and unified network.”

Meanwhile, Palletforce recently recruited Hallen, South Gloucestershire-based Wrings Transport as a member.

The haulier operates 65 vehicles and joined an express pallet network for the first time to help create additional commercial opportunities and drive business growth.

Operating across three sites and with 100 employees, Wrings Transport has taken on south-west BS postcodes around Weston-super-Mare.

Stuart Wring, Managing Director at Wrings Transport, said: “Joining a pallet network was a strategic decision as it fits well with our current infrastructure and operational platform, where we have the capacity and capability to handle additional palletised freight.

“With volumes fluctuating across the industry, it also ensures we can offer our customers an agile, scalable and sustainable solution for smaller consignments.”

Pall-Ex (UK) is a network of independent hauliers made up of about 100 shareholder members, with a headquarters and central UK hub in the Midlands, a south-central hub in Northamptonshire, as well as a northern hub in Lancashire.

Members include Pall-Ex London, Cranleigh Distribution Services, Shears Brothers (Transport) and Intercounty Distribution.

Gloucestershire-based Superior Freight joined the Pall-Ex network in October 2023 to strengthen its offering to more local businesses and continue its growth trajectory.

The haulier covers postcodes throughout Gloucestershire for Pall-Ex, and alongside palletised freight delivery, it also offers general haulage, container devanning and warehousing and storage solutions from its 40,000sq ft site in Evesham.

Superior Freight said membership of the network given it access to a wider range of haulage firms across the UK, alongside strong international partners, making distributing its freight more efficient and streamlined.

Andrew Johns, Managing Director of Superior Freight, said: “Being part of a shareholder network ensures that all members are striving to achieve the same performance levels, meaning we can be confident that the quality of service we are known for at Superior Freight is maintained throughout the entire Pall-Ex Group network.

“As a family run business, we are dedicated to ensuring the best customer service possible and it is clear that Pall-Ex Group share the same values.”

Palletline, which launched in 1992, has a 100% member owned model which includes 96 haulier depots.

Thatcham-based Shoreline, a firm that also specialises in the transportation of boats throughout the UK and Europe, is a member, covering the RG postal code area in the Berkshire region.

The business, which offers a range of services including full loads, groupage, general and bespoke haulage along with specialist transport solutions and abnormal loads, has successfully diversified its business by introducing palletised distribution as part of its portfolio.

It currently operates 16 vehicles with a total of 22 employees, 11 of which have joined the company since it partnered with Palletline in August 2022.

Linked to its membership of the network, Shoreline is on course for a sizable expansion with a new 8,000 sq. ft building planned, including a further 10,000 sq. ft of canopy space, providing a platform for continued growth.

Paul White, Managing Director of Shoreline said: “Due to the seasonal nature of the boat market, it made sense for the business to expand to palletised distribution.

“The palletised distribution services we provide with Palletline offers an exciting new business development for Shoreline and presents an excellent opportunity for growth.”

In summary, membership of a pallet network can provide a haulage firm with opportunities to grow road freight volumes, reduce carbon footprint, achieve efficiency gains, and provide a better service generally.

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