Palletways in Europe push
The pallet network has taken on a new CEO and a new partner and is looking to the continent for growth.
Palletways is to launch a major European expansion drive, new chief executive James Wilson told Motor Transport in his first – and exclusive – interview. Maintaining a strong UK focus, following a refinancing deal with Phoenix Equity Partners, is also crucial to the network’s development plans. “We are in the middle of the planning phase and are looking at a number of different models. We are determined to learn from the experience of UPS and FedEx who copied their US models into Europe, which maybe wasn’t the best way. We are keen to expand but the model needs to reflect the marketplace,” says Wilson. “Palletways has the scale to support a European plan and has a blank sheet of paper so it can reflect the new emerging markets.” Under Wilson’s guidance Palletways could abandon its approach to moving into Europe, which has seen it replicate its UK model successfully into Italy, which moved a record 2,500 pallets a night last week, and the Benelux. Managing director Julian Maturi says: “We know the Palletways model can work in foreign markets but now we want to go the quickest and best way. Our expansion into Europe is now being hotly debated, which hasn’t been the case in the past, and we are happy to change our approach. “It’s the case we are not bothered where we score in Europe, as long as the team wins,” he quips. Palletways’ growth in Europe will be supported with the expansion of its stockholding facility business Stargate Logistics. Further expansion of the service in the UK is also soon to be announced. The network has also re-written its IT package so it can be easily translated.
Palletways’ directors are quick to emphasise that the UK operation remains key to its success and has demonstrated this with “heavy investment” at its Lichfield site, including a new lorry park to help members with the Working Time Directive. Julian Maturi says: “We need to protect and develop the UK business because at the end of the day it pays our wages. However there is no doubt we will continue to improve and expand our product offering for members and customers.” James Wilson expects the UK business to grow by 20% this year and expects the membership to grow from its current 97 to 110 within the next year. “We want to make the business easy to use – that is where the market is moving. So customers can ship freight simply and conveniently as with the movement of documents and parcels,” he says. Other UK developments include last month’s successful launch of a 4,000sq m regional hub in Greenford, London. The hub, served by 20 depots, covers the area from Colchester to Southampton. “It is way ahead of target,” according to operations director John Hyatt. The network expects in-cab technology to go live by the end of the year and another development could be a tie-up with a parcel operator – however it admits this is not top of its priorities. “We haven’t been able to establish a platform that will suit both partners,” says Maturi.
COPYRIGHT 2004 Reed Business Information Ltd.
