Selling crucial to networks
Pallet networks are missing out on huge volumes by failing to give their members enough sales support, according to consultant John Day of AD Partnership. Day (pictured below), formerly general manager of Fortec who was joint-buyer of Auld Bros last autumn, says: “There is a lot of volume currently going through the parcel systems that they (pallet networks) could gain. With the Working Time Directive soon to kill off groupage, customers will turn to the pallet networks, therefore sales strategy is becoming crucial; but the networks leave it up to the licensees.” Day says a company’s success in a system is down to its ability to sell. “Network depots need to put more into a system than they receive back because membership won’t pay on deliveries. “We find hauliers think that becoming a member of a network will automatically generate new business but it doesn’t and they struggle because they are operationally led and do not understand the competitive environment of sales,” he says. Day believes the parcels sector is the best example of how sales works well when properly supported. He employs former parcels sales executives to spend up to 12 weeks with clients to pass on their experience.