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The recession has left Palletways,
the pioneering pallet network group
headquartered in Lichfield, Staffordshire,
stronger than ever and with a renewed
vision for the future, says Luis
Zubialde, MD of Palletways UK.
That is not to underestimate the pain
felt by many network members –
although 2014 saw the UK network
at 97 members, exactly the same as
in 2008 (there are now 106), over 30
members left the network due to lower
volumes, tighter and less profitable
rates, bad debts from customers or
in some cases, the withdrawal of
bank finance. Nonetheless, the group
managed to cover gaps in the network
with new willing and competent
members, continued investment,
opened in Germany and by the end of
last year was moving 43M pallets pa,
with Q1 2015 sales up a further 13%.
The Palletways business model,
consistent since its founding in 1994,
of service excellence and complete
transparency with both members
and customers, has exported well
across Europe, says Zubialde, who
took over in the UK in May 2014
having previously headed Palletways’
Iberian operations. Craig Hibbert,
Group Member development Director
and one of Palletways’ founders,
notes that within the
past 18 months, the
company has set up
a new regional hub
in Milan, a brand
new, larger hub in
Nijmegen (with a
co-located fulfilment
centre serving
Benelux and the Ruhr)and extended
hubs in Madrid and Bologna. New
hubs in central Germany (Homberg),
Southern France (Lyon/Montpelier) and
Eastern Europe are also well advanced
in planning.
This follows expansion into Poland, the
Baltic, Bulgaria and Romania. Europe-
wide, some 400 members last year
handled an average 33,000 pallets a
day through 400 depots/members and
12 hubs across 20 European countries
– 40% of turnover is now outside the
UK – Zubialde notes that, although a
common reaction in a new territory
is ‘that may work in the UK, but not
here’; in practice members find that the
model really does work across Europe
(although France, perhaps predictably,
works under a different sub-contracted
model).
As part of the ‘Vision 2020’ strategy,
therefore, Palletways is moving from
a country-based network identity
towards creating a Europe-wide
brand that will emphasise the scale
quality and professionalism of the
network. Zubialde told me, this is an
exciting time for our network as we
continue to expand, reinforcing our
market leadership, our reputation
for service excellence, and our pan-
European capabilities in support of our
customers’ growth ambitions.”
Besides branding and communications,
Vision 2020 focuses on stabilising and
repairing the network – over the last
year the UK network gained 12 new
members, some from rival networks,
and lost three (only one for inadequate
service reasons), while re-aligning
and optimising members’ areas is an
on-going task. To support members,
inter-member transfer rates have
been reworked by the world-leading
pricing consultancy Simon-Kucher,
to ensure that appropriate rewards
and incentives are in place. Improving
network efficiency and enabling
members to add value is another
New vision for
European growth
Sam Tulip visits a pioneering
pallet network group.
Craig Hibbert
Group Member Development Director
Luis Zubialde, Managing Director
14
Logistics Business Magazine | November 2015
PALLET NETWORKS