Pall-ex rejects ‘price undercutting’ model

The company recognised an unsustainable trend of price undercutting across the entire sector that was dramatically squeezing hauliers. Driver shortages and the disintegration of fellow network members was becoming a common occurrence and it was clear that intervention was required.

Group managing director at Pall-Ex, Kevin Buchanan, was quick to address these issues, developing a strategy that enabled the network to bolster its offering to members through improved customer care. Achieving this required major internal and external investment in technology, with a key focus on communication. In a congested marketplace, customer care is the key differentiator and Kevin was keen to reflect this.

Kevin comments: “We identified a key underlying issue with communication across the network, which was putting a strain on some existing relationships with customers. In order to address this, we decided to cap network growth in 2015, allowing us to focus on improving communication between Pall-Ex and its customers. We also invested additional time and resources into network members to help themselves drive customer satisfaction scores and increase sales.”

As part of the new strategy, a number of goals were implemented, most notably, to ensure that 100 per cent of hardcopies of proof of delivery (POD) were scanned. In addition to improving performance, this also allowed Pall-Ex to improve transparency, reduce human error and close the gap between perception and reality.

A real success story for the network has been UK tiling specialist, Tile Mountain, which has experienced dramatic levels of growth over the past two years, with Pall-Ex playing an integral role in facilitating this.

The substantial growth of Tile Mountain has been instrumented by the company’s tremendous ability to handle its growing delivery numbers, in addition to providing a range of key additional services to customers.

Pall-Ex provided essential business advice, offering support to improve logistical processes within the company. This has included a revamp of the type of pallets they use and guidance on wrapping freight correctly. This was essential for reducing the risk of damage to products, a KPI for its customers and clients.

The delivery process has been revamped. Tile Mountain is now able to offer a customer promise of next day delivery on any orders placed before 4pm – a USP within its market. As a result, 90 per cent of orders are now executed through home delivery with Pall-Ex being able to reach the most rural areas, with convenient curb-side delivery using tail lift vehicles.

Customisation and integration have been continuing themes in the relationship between Pall-Ex and Tile Mountain, and this approach has resulted in improved efficiency and increased sales.

Having an efficient POD system has allowed Tile Mountain to seamlessly integrate its business operations. Pall-Ex’s IT department was able to devise a unique system that automatically pulls POD information from its database, straight into Tile Mountain’s CRM system. This automated process reduces time and the risk of potential human error.

Additionally, Pall-Ex Group operations director, Mark Tapper, has worked closely with the business to develop its internal processes, particularly in the efforts to minimise the frequency of early deliveries – a major problem for home deliveries.

Jeremy Harris, managing director at Tile Mountain comments: “Pall-Ex has played a critical role in facilitating the growth of Tile Mountain. Having faith in a supplier to provide consistently excellent standards of service is key, particularly to a growing business.

“In addition to providing its core delivery service, Pall-Ex has gone above and beyond in terms of its service provision. I look forward to seeing this strong relationship develop further in years to come.”

Kevin concludes: “While competition in the freight network sector remains high, it’s clear that networks do not need to undercut the competition to stand out from the crowd. Going above and beyond for members by providing exceptional customer service and guidance, relationships can become long term and profitable for both parties.”