Palletways is gunning for a larger share of the growing B2C market, but believes customers must be more realistic about what they are willing to pay if hauliers are to continue delivering to their doors.
Speaking at the launch last week of its new strategy, Vision 20:20, Palletways UK MD Luis Zubialde said B2C pallet volumes stood at around 10% of the network’s total.
As part of its new strategy, which is underpinned by the introduction of what Palletways described as its most advanced software yet, customers will have the option to make direct bookings.
The new software should enable them to then track their delivery through its journey through the network too, and Palletways is putting the finishing touches to a consumer brand that, while remaining true to the network, will pitch the service in a different way to traditional B2B.
“But if we are in B2C we should be providing services at the right price,” said Zubialde.
Conceding B2C rates were an industry problem that needed to be tackled, he added: “We need to push and make sure the market pays us [as an industry] for what is a more expensive service. At the moment you can pay the same amount for a parcel delivery as you do for a one-tonne pallet, which means something is wrong.”
As part of its new strategy, Palletways is also optimising territory boundaries to improve drop-density and trunk balances. The exercise has been completed in the North West and the Midlands where it has delivered a “six-figure” benefit to members.
Zubialde said the realignment and introduction of the new software would ensure members were in rude health. “We want sustainable profit growth. We are not pushing for 20% growth, as we don’t seek to be busy fools,” he said.
