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Building business with award-winning road transport services

Case Study

Building business with award-winning road transport services

International pallet network business Pall-Ex is seeking to drive expansion with new global partnerships

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Pall-Ex Group has channelled its expertise in palletised freight delivery to help drive its growth internationally. Its unique hub-and-spoke and hub-to-hub systems are the key frameworks to the business’s success, providing connections that are faster and more efficient whilst delivering transparency for partners.

The Pall-Ex U.K. division handles over 18,000 pallets per night, with the group distributing over 40,000 pallets each day through its current European operations.

Pall-Ex is well established throughout Europe, operating across the continent from bases in 12 countries, after introducing the palletized freight model to several new markets. It has also developed a business-to-consumer delivery method for palletized goods, following continued multi-million GBP investment in its tracking and visibility software, Nexus.

With an ambition to become the first choice international pallet network and delivery company, Pall-Ex is looking for master licensees to create new hubs and partnerships providing incredible freight services across the globe.

Most recently, the palletized distribution network has been driving plans to overhaul the pallet freight model in the U.S. and develop its current use beyond big and bulky loads. By operating on a hub-and-spoke-basis, the regionally based sublicensee trucking depots collect freight from customers, consolidate it and line-haul it to the master licensee transhipment hub in their state or allotted territory area.

The creation of joint ventures to introduce Pall-Ex to new markets and using local knowledge and expertise within each individual country is key to the success seen to date. By partnering with established businesses, local knowledge is combined with the Pall-Ex brand, the award-winning technology and pallet network experience, strengthening both businesses for future growth.

Licensee opportunities

Pall-Ex is now seeking more road transport companies across the globe to expand the network even further.

It is looking to build long-term, mutually beneficial partnerships which deliver real business advantages to customers, shareholders, suppliers and staff. This can be achieved through both Pall-Ex’s master and sub-licence options.

The Pall-Ex master licensee is the main licence holder for the allotted territory, with its objective to recruit and manage sub-licensees, with key responsibilities including:

  • Running/operation of the transhipment hub
  • Recruiting and supporting sub-licensees
  • Monitoring sub-licensee compliance
  • Sales and volume growth
  • Marketing/brand awareness in the territory.

The Pall-Ex sub-licensee is an independent road transport company that has been recruited by the master licensee to operate within a designated area.

On a daily basis they will manage their customers from their own depot and collect and deliver within their designated area (within the master licensee territory) being responsible for:

  • Obtaining and managing their own customers
  • Managing a suitable fleet of vehicles
  • Meeting compliance expectations
  • Local volume growth.

Award-winning solutions

The Pall-Ex model enables independent hauliers to develop and diversify their services for future growth under an independent brand. Having a collaborative approach to logistics and freight handling establishes huge efficiencies, enabling customers to send consignments ranging from single pallets to part loads, quickly and cost-effectively.

Pall-Ex continually develops a comprehensive range of integrated domestic services which proactively respond to the challenges and opportunities encountered by customers. These include:

  • Premium, economy and timed deliveries
  • Cost-effective rates for a wide range of consignment sizes or types
  • Competitive rates for multi-pallets
  • Bespoke logistics solutions
  • Sector-leading, integrated I.T. solutions
  • Real time track-and-trace
  • Live proof of delivery (POD)
  • Automated real-time KPI reporting.

By investing in the best innovative technology, a licensee is able to move a pallet of freight from Bangkok to Barcelona as seamlessly as a domestic consignment, with the added assurance of full visibility to the customer at all times.

Hear from a master licence holder

Pall-Ex’s Iberian master licence holder, Grupo Damm, began operating from its Madrid location in April 2011.

With more than a decade of experience in the logistics industry primarily in transport and warehousing, the organization was looking to expand its operation on an international stage and saw the perfect opportunity from teaming up with an established, innovative, industry leader.

This resulted in the launch of Pall-Ex Iberia, with the master licensee opportunity providing the group with a unique platform to help its customers manage market trends and demands, which also supported Grupo Damm’s growth ambitions.

Sergi Tomás, managing director of Pall-Ex Iberia, said: “The master licensee opportunity provided us with a unique platform to help our customers deal with market trends and demands. By becoming part of a leading network, promoting a progressive ethos and strong networking values, Grupo Damm can be part of an international network and become recognized under Pall-Ex’s successful brand.”

Whether you’re looking to grow with a logistics franchise opportunity in your region, or just want to make use of Pall-Ex’s extensive name and skillset, businesses are provided with all the tools necessary to become a leading name in the logistics industry.

Pall-Ex’s distribution model offers a unique alternative in the domestic market, designed to service industries including the food and beverages sector, packaging, household appliances, consumer electronics, retail, paper and construction.

The Pall-Ex model has a track record of achieving excellence, especially thriving in emerging markets where models of palletised freight distribution are yet to be established.

At a Glance Pall-Ex

Year established: 1996
Number of franchised outlets: Eight master licensees with over 600 sub-licensees
Location of units: Belgium, Czech Republic, France, Ireland, Italy, Luxembourg, Netherlands, Poland, Portugal, Romania, Slovakia, Spain and the U.K.
Investment range: $250,000 – $500,000
Minimum required capital: Dependant on current infrastructure of existing business
Contact: Mark Steel – MD of international business units. Email: msteel@pallex.co.uk Mobile: +44 (0)7734 386148 Tel: +44 (0)1530 239 000 pallex.com

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