Pall-Ex Group is planning to roll out a last mile delivery scheme across multiple cities early next year after its launch in London delivered service levels above 96.5% and boosted members’ annual revenues by over 29%, on average.
The London Project was developed by Pall-Ex in collaboration with 13 of its members to tackle the cost of and difficulties of delivering into London.
The scheme identified and mapped 13 territories in and around London, using depot location, vehicle management, and freight volume data, and alloted them to 13 members. Each member has exclusive access to the commercial opportunities within the allotted patch to ensure maximum efficiency and profitability via improved load and route planning.
Pall-Ex also introduced new and more favourable Inter-Member Rates (IMR) under the scheme. These are the rates network members pay to send freight into London and have been introduced specifically for London Project members, enabling them to make more profit on every pallet moved.
To remain in the London Project and take advantage of its additional benefits, members are required to improve and maintain above 95% service levels in their designated zone at all times and to work exclusively for Pall-Ex and Fortec.
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The London Project has already proven successful with Pall-Ex and the Fortec Distribution Network able to provide last-mile coverage throughout London, without the need for any sub-contractors or multi-network members, which it claims to be a sector first.
Pall-Ex said this week that it is now planning to roll out the scheme in other urban locations in early 2023. Barry Byers, Pall-Ex Group managing director of UK business units, said: “We highlighted the advantages and projected profits to the 13 shareholders to ensure each pre-identified member was committed to The London Project.
“By selecting the best network members in and around London, we have been able to overcome issues related to dual or multi-network members, resulting in a more focused and efficient operation,” he said.
“The initiative, which is the first of its kind in the pallet network sector, has united 13 quality logistics companies in and around London. Customers now benefit from an improved, quality urban delivery service and have confidence that their freight always takes priority, as all members are now shareholders, working together to achieve excellence within the capital.”
Adam Hopcroft, Premier Palletised MD and Pall-Ex member added: “The costs and challenges associated with collecting and delivering in London are unlike anywhere else, so it was important the terms were right before we signed to become exclusive to Pall-Ex Group. I am proud to be a part of the London Project, we have already seen an improvement in the service we provide to our customers and fellow network members, as well as the reliability, which is key.”
The 13 members also enjoy several benefits, including the elimination of multi-network subcontractors, increased market input, exclusive member agreements, increased delivery capacity and improved profit revenue as long service levels stay consistently high.
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