UK Pallets, the Express PalletDelivery System, provides adedicated pallet delivery service

utilising a network of over 80 independentdistribution and logistics specialists pro-viding a range of next day and economydelivery options. In the lastfour years UK Pallets hassuccessfully grown itsturnover and greatlyimproved its profitability,and its service performancelevels are the envy of theindustry.

UK Pallets' drive for con-tinuous service andoperational excellence isnever ending, backed up by acommitment to ensuring itmeasures up on perform-ance. This ethos has recentlyinspired the company to seekand achieve a double honour,receiving accreditation in twointegrated management pro-grammes - BS EN ISO14001:2004 (Environmental) and BSOHSAS (Occupational Health and SafetyAdvisory Services) 18001: 2007.

UK Pallets Managing Director TerryRichards says UK Pallets is probably thefirst company in the UK, let alone the first inthe pallet industry, to achieve an integratedcertification for both standards from oneassessment programme.

A VISION REALISEDThe latest chapter in UK Pallets' success

story started in early 2006 when TerryRichards joined as MD. He very quicklyestablished his plans for the future, andwith his senior management colleagues setabout promoting his vision for UK Pallets tobe recognised as the best pallet network inthe industry, representing value for moneyfor its customers, with every member in thenetwork, including the national hub, consis-tently providing the highest standards ofoperational performance and excellence incustomer service.

"As a fundamental part of our vision,"says Terry, "we wanted UK Pallets tobecome not only the network of choice forour customers and the envy of the competi-tion, but also the network that prospectivemembers wanted to join. We recognisedfrom the outset that the network could onlygrow and flourish if everyoneinvolved attended to the basics,and developed sustainableservice and operational excel-lence while adopting a right firsttime and "must get through"attitude."

As the first step Terry andcolleagues set three businessobjectives, which he describesas "simple but challenging." Thefirst was to ensure UK Palletsprovided the highest levels ofservice and operational excel-lence to all customers andmembers using the network.The second was to ensure allfleet collections and deliveries,hub consolidation activities andmember deliveries fully complied with UKPallets' administration procedures,processes, IT, Health and Safety and Legalrequirements, as detailed in its ContractualAgreement and Operating Manual. Thethird objective was to develop and imple-ment a suite of key performance indicatorsto measure, trend and drive a continuousimprovement culture within UK Pallets.

Flowing out of these objectives TerryRichards also introduced and established aset of targets for the network to focus on.First, all UK Pallets Midlands Customer col-lections, and similarly all Member TrunkHub arrivals and departures had to be 'ontime every time,' with the load safe, secureand correctly labelled with the right paper-work. All member deliveries on behalf ofthe network also had to be 'on time everytime,' and all forms of operational 'claims,'especially loss and damage, kept to anabsolute minimum.

"We started out on our service and oper-ational excellence journey against this

backcloth," Terry recalls. "From there theimprovement programme which we intro-duced served only to reinforce thedetermination within UK Pallets and UKMail Group plc for all involved to get it rightand become the best."

Talking at the end of 2009, TerryRichards is delighted at the progress thecompany has made so far, "but as alwaysthere is still much to do."

STANDING UP TO TOUGHSCRUTINY

UK Pallets is committed to providing andmaintaining a safe workplace for all, anddoing everything it can to support andmaintain the environment within which itdoes business. As a measure of their confi-dence in their progress, they decided tosubject this part of the business to therigours of external scrutiny. Hence theysought and gained accreditation under thetwo independently recognised managementprogrammes - BS EN ISO 14001:2004(Environmental) and BS OHSAS(Occupational Health and Safety AdvisoryServices) 18001: 2007.

These exacting programmes addressedthe objectives for UK Pallets regardingHealth & Safety and Environment (HSE)issues. They were as follows: to be theleader on HSE issues in the pallet sector; toinvolve and inform their people on HSEissues; to create a culture that recognisesthat personal actions can and do make adifference; and to implement positive per-sonal actions to look after their health,safety, environment and the wellbeing oftheir people and visitors.

BS EN ISO14001:2004 looks at the envi-ronmental activities and impacts, which forUK Pallets are a key part of its everydaybusiness such as movement of goods on theroad and in the depot, fuel storage, house-keeping and waste management. The BSOHSAS 18001:2007 standard is compatiblewith BS EN ISO14001, and looks at theHealth & Safety aspect of the business. Ithas 17 elements designed to run in parallelto ISO14001 and ensures there is employeeinvolvement and consultations in the devel-opment and review of UK Pallets' Health &Safety policies and procedures.

Bringing the two standards together andcreating the Integrated ManagementSystems has enabled UK Pallets to coverboth standards in one assessment, and withcontinuous improvement on the planning,documentation, training and development,auditing and non-conformance and correc-tive and preventative actions.

Preparation started in April 2009 usingexternal consultant Harry Staniforth

Associates Ltd in readiness for the externalassessment by LRQA in October. HarryStaniforth said afterwards, "In 20 years ofconsulting and supporting over 110 compa-nies achieving various standards, I cannot

remember any company comingunder such intense scrutiny -eight days - at all levels, with onlyminor issues being raised. This isa credit to all at the company."

UK Pallets Managing DirectorTerry Richards says the accredi-tation will provide objective andindependent assurance to cus-tomers that UK Pallets operatesto the highest standards in han-dling their freight. The standardswill help reinforce to all involvedin the network the need to getthe quality and reliability ofservice right first time everytime while encouraging a 'mustget through' attitude andbehaviour.

A TRACK RECORD OF SUCCESSUK Pallets has been in existence since

July 2004 following Business Post's (UKMail) acquisition of Weaver Pallets, and isnow a major part of the group. There arecurrently over 80 members of the UKPallets network. Leading names include J.B.Wheaton & Sons (South West),Advanced Delivery Services(Midlands), United PalletsScotland (Scotland), EliteWorldwide (South East) NeilBomford Transport Ltd (EastAnglia), Transland International(Ireland), and Kenneth HowleyTransport (North.)

UK Pallets is unique in itsmarketplace in that the Fradleyhub, UK Pallets Midlands(UKPM), is also a member ofthe network in its own right,with over 40 vehicles oper-ating from it. These service itsown customer base and deliverthroughout the centralMidlands area. CommercialDirector Graeme Wilson explains:

"UKPM cover a number of postcodeswithin the Midlands and input a substantialamount of freight. Our customer base thereranges from small businesses to major mul-tiples. Many of these companies have beenwith us for years, and all of them are

delighted with the quality andservice levels provided byUKPM and our network mem-bers. Not only does the fleetbased at the hub service theneeds of our own Midlands cus-tomer base but it also providesan insurance policy for servicelevels and delivery performancethroughout our entire network."

Unlike most other networks,within UKP there are no joiningfees and no shareholders otherthan UK Mail. Members are con-tractually bound to the networkbut the commercial model cen-tres on a purely transactionalbasis with fixed pallet input anddelivery rates.

UK Pallets has continued to experiencegrowth in pallet numbers through thesesomewhat uncertain times although thegrowth rate has slowed recently. The hubcurrently averages some 5,500 pallets pernight.

The existing 140,000 sq ft hub has thecapacity to accommodate some 7 - 8,000pallets per night, and UKPM has recentlyreceived planning permission to extend thefacility by a further 70,000 square feet asand when necessary.

A BROAD RANGE OF PALLETSERVICES

UK Pallets cater for all requirementswith their Next Day, Economy and Premiumservices such as timed, Pre 9am and AM.UKP will also consider non-palletisedfreight if it can be handled with a forklift.

The UK Pallets member network serv-ices all the UK every day, includingHighlands & Islands and the Republic of

Ireland. UKP also caters for ContinentalEurope by means of the longstandingmember relationship between UK Palletsand another of its member companies,Dachser. UKP's unique on-line quoting andbooking system allows any member or cus-tomer to immediately book, cost andconfirm transit times for all non-UK con-signments. UKP also have manylongstanding and established relationshipswith specialist service providers, so cancater for any destination.

UK Pallets is justifiably proud of itsmember service levels, which are consis-tently well above 99%. It monitors andmeasures members constantly, and pub-lishes and distributes weekly league tables.UKP measures members on two main cri-teria, delivery performance and systemscompliance. The former measures compli-ance relating to "On Time In Full" (OTIF);the latter measures such performance indi-cators as POD data and delivery status anddiscrepancy reporting. UKP has a team ofcompliance managers who work with andassist any member who fails to meet theexacting standards demanded by the net-work. On the rare occasion any memberconsistently fails to comply with its serviceobligations, UKP can ultimately choose toremove them and replace them with a newmember.

The network currently services all geo-graphical areas, but UK Pallets are alwayswilling to talk to any company that feels itcould benefit from joining the UK PalletsNetwork. Anyone who is interested must beable to demonstrate operational excellenceand a commercially sound business.

"ALL SYSTEMS GO AT UKPALLETS"

As well as preparing for and achievingthe ISO and OHSAS accreditations, anothermajor focus recently for UK Pallets hasbeen the development and implementationof a robust and user-friendly I.T. System, UKPallets On-Line, which joins seamlessly allaspects of its operations.

Graeme Wilson explains: "We now havean end to end system that manages freightfrom the point of collection, into andthrough the hub, out to the delivery mem-bers and on to the end delivery point."

UK Pallets On-Line is a web-basedsystem developed in house by UK Pallets,which allows direct installation of therequired applications straight onto a cus-

tomer's computer. For regular and or highvolume customers UK Pallets provide athermal label printer so they can manifestall consignments and label them at thepoint of despatch. Occasional users canalso get the benefits of the system and printtheir own paper labels prior to the arrival ofthe collection driver, who will then verifyand scan the pallet before loading it ontohis vehicle.

Back at the hub, UK Pallets has investedheavily in building and installing "CheckingTunnels" for both in-bound and out-boundfreight, so all pallets entering the depot canbe scanned and receipted.

After al l consignments have beeninspected and the details uploaded, thenext phase is to off-load and allocatethem to a member location. Before this, avery important Health and Safety check isthat fork truck-mounted weigh scales

automatically weigh all pal-lets. UK Pallets has nowdeveloped its system andadapted its operations inter-nally to incorporatepermanent fixing scanners atthe front of the forklift. Theseare automatically activated asthe forklift approaches thepallet, and read the barcodelabel as the truck's scalesweigh the freight.

The tracking informationand pallet weight are displayedon a screen mounted alongsidethe forklift operator, and thedata is automatically trans-mitted to "UK Pallets Online"via the wireless infrastructure

at the Fradley hub.

THE NETWORK OF CHOICEWITHSTANDS THE RECESSION

Graeme Wilson, Commercial Director,UK Pallets, is confident about the future:“Even in this somewhat uncertain economicclimate, these are really exciting times forus. With the backing of our parent companyUK Mail, we have continued to invest in ournetwork and facilities, and plan furtherdevelopments and enhancements in theshort term.

“Competition for members and cus-tomers alike has never been greater, butwhat sets us apart from other networks isthe culture and desire evident throughoutthis business and the people involved in it.Our efforts are firmly focused on qualityand customer service, and we are justifi-ably proud of our network and ourmembers, who week after week reportand prove delivery service levels and sys-tems compliance levels in excess of 99%,which enables us to stand out from ourcompetitors.”

UK PALLETSACHIEVES DOUBLE 'ISO' AND 'OHSAS' HONOURS

UK Pallets Managing Director Terry Richards.

Email: warehouse@flame1.com Tel: 01923 272960 UK PALLETS

Page 12 January 15th 2010

UK PALLETS TEL: 01543 267500 WWW.UKPALLETS.COM

UK Pallets Interview & Case:Layout 1 6/1/10 11:10 Page 1

Apallet network is only as goodas the individual member com-panies that make up that

network and carry out the daily deliveriesand collections for the thousands of com-panies who entrust them with their freightevery single day. At UK Pallets, the pri-mary focus is on ensuring the businessbecomes the network of choice, not onlyfor the customers but also the memberswho make up the network.

UK Pallets’ Commercial Director GraemeWilson believes that to be successful, everyone of the network’s members has to sharethe same drive and commitment to qualityand operational excellence, and the key tosuccess is centred on open communication,measurement and a total desire for qualityand continuous improvement.

Unlike other networks, UK Pallets doesnot believe in joining fees for its members,or that businesses need to become a share-holder of the network to be part of it. Whatit does believe is that all members need toshare one thing in common - a total com-mitment to service quality and operationalexcellence.

UK Pallets’ members are all contractu-ally bound to the network, and have signedup to their commitments in terms of aquality service provision with one of thiscountry’s leading palletised freight distribu-tion organisations.

At UK Pallets a great deal of emphasis isgiven to ensuring each and every memberprovides a service that every one of themand their customers would expect toreceive. Daily monitors are in place tomeasure members’ delivery performanceand systems compliance, including updatingthe on-line tracking system and providingduly completed POD’s in a timely manner.

ADVANCED DELIVERY SERVICESMADE THE RIGHT CHOICE

So while other networks struggle, justhow does UK Pallets continue to attractdelivery companies?

At the recent UK Pallets conferenceGeraldine Haynes, the Managing Directorof one such member, Advanced Delivery

Services (ADS), outlined why they chose tobecome and continue to operate as, amember of the UK Pallets network:

“I truly believe that we made the rightchoice when we chose to join UK Pallets. Ihave had experience of other networks andwas a member of a couple of them, so whenthe time came to consider a change, I care-fully reflected on what I and we at ADSwanted from a network.

“I wanted excellent service levels, wheremy customers’ consignments would begiven the same priority as the deliverydepot’s own customers. I wanted goodcommunication, so in the event of aproblem it would be communicated to meand I could let my customer know, ratherthan the other way around. I wanted peaceof mind that my deliveries would get totheir destinations on time, every time, and Ididn’t want to worry about the possibledemise of other members and how theirfinancial status would affect my deliveriesthe following day.

“I wanted a culture where we could allwork together for the mutual benefit ofeach other in the network, and we all givethat little bit more to each other. I believethat we got that with UK Pallets. The teamthere works with us listening to the changeswe require, and if they make good businesssense they are taken on board and imple-mented. This close co-operation means weall have the opportunity to benefit fromconsistent and considerable growth, andUK Pallets recognise that by workingtogether we can, will and do succeed.”

UK PALLETS – THE NETWORKWITH A GREAT FUTURE

It’s been well documented how changesin the retail landscape are forcing compa-nies to re-evaluate their traditionaltransport solutions. As competitionincreases, companies need to be able torespond quicker to their customers’ needs

and ship smaller and smaller consignmentsover a shorter period of time while stillbeing cost-effective. The pallet networksmake that possible at a far more competi-tive cost than the traditional third partylogistics providers.

UK Pallets see growth coming from com-panies putting more and more of theirvolume through networks such as UKP. UKPallets has successfully grown and devel-oped its business over the last few years,and despite today’s uncertain financial andcommercial market will continue to do soover the coming years

“It won’t be easy, we know,” saysCommercial Director Graeme Wilson, “butwe’ll continue to win business away fromour competitors by providing, first and fore-most, a better service level. What we won’t

do, unlike some of our competitors, is buybusiness by offering unsustainable ratesjust so we can fuel our egos by seeinguneconomical growth in pallet numbers.

“We will listen to what our customerswant from us and tailor our service offer-ings to suit their needs, and not try to getthem to fit into what we want to give. Wewill further concentrate our efforts inretaining and growing our existing cus-tomer base. Our network, of which we arejustifiably proud in terms of their ability andreputation, will continue to provide thehighest levels of service, which sets usapart from our competitors.”

EXPANDING INTO EUROPE ANDBEYOND

European and international traffic is akey element in UK Pallets’ operations, andthe company is experiencing everincreasing demands from its existing cus-tomer base to provide services todestinations around the world.

The European Distribution Centre (EDC)at Fradley Park, Lichfield, caters for daily andtwice weekly departures to many areasincluding France, Germany, Benelux, Greece,Spain, Poland and the Czech Republic. Theservice is tailored to meet customer needs,according to the nature of the freight, itstime sensitivity and destination.

For many years now, UK Pallets’ cus-tomers have been able to send pallets ofgoods throughout Europe. However, inorder to further develop its Europeanservice offering, UKP has now strengthenedits business relationship with Dachser. UKPallets and Dachser recently completed thedevelopment of an “On-Line” quotationsystem, UKP OnLine, which allows all cus-tomers with access to find out instantlyabout the costs and transit times of pal-letised goods destined for Europe.

As a result of these developments UKPallets customers can now benefit fromdaily departures to most European destina-tions, and the process of sending goods toEurope has been much simplified.

UK Pallets has also been able to reducesignificantly the associated costs and chargesapplicable to these transactions, with recentanalysis showing charges quoted being sub-stantially lower than prices traditionally given.UKP see their worldwide growth continuingas international trade becomes easier andmore accessible. For worldwide expressparcel and document services, customersalso have access to the unrivalled coverageand scope of UKP’s parent company UK Mail.

THE LAST WORD -GRAEME WILSON

“We are proud to be able to consistentlyreport delivery service levels in excess of99%,” says UK Pallets’ CommercialDirector Graeme Wilson, “but that doesn’thappen by accident, and a great deal of oureffort is focused on quality and customerservice. No one can ever afford to be com-placent as far as service is concerned, andat UK Pallets we will continue to focus onimprovements.

“We’re not interested in growing vol-umes that are unsustainable at ridiculouslylow rates - that wouldn’t be in any one’slong term interest. What we are interestedin, and are committed to providing, is aservice to our customers that they can relyon both in terms of longevity and quality.

“We work very closely with our cus-tomer base and place a great deal ofemphasis on building long term relation-ships, and we will continue to work withthem and evaluate additional and addedvalue opportunities and services.

“We have invested heavily throughoutour operational infrastructure, and will con-tinue to do so. We will also continue todevelop and invest in new technology toenhance our existing I.T. Systems, and wewill further promote the name of UK Palletsand its members; and target and win newbusiness from our competition.

“Quite simply, we have a great teamhere at the hub, a fantastic member net-work and a great reputation with anenviable customer base, and we provide agood quality cost effective service. And thatunbeatable combination forms the basis ofour development plans moving forward.”

UK Pallets’ Commercial DirectorGraeme Wilson.

Geraldine Haynes, Managing Director,Advanced Delivery Services.

UK PALLETS TEL: 01543 267500 WWW.UKPALLETS.COM

UK PALLETSTHE NETWORK OF CHOICE FOR ADVANCED DELIVERY SERVICES

Tel: 01923 272960 Email: warehouse@flame1.com UK PALLETS

January 15th 2010 Page 13

UK Pallets Interview & Case:Layout 1 6/1/10 11:11 Page 2