Triangle's annual survey of UK pallet network users highlights once again the lack of brand awareness as a key issue for specialist network operators. This year's survey shows that only some of the networks have taken heed of the main messages arising from last year's survey. Although a large proportion of customers sending out palletised shipments still did not readily identify a specialist network as the ultimate service provider, rather than their local haulier, the larger pallet networks did manage to improve their awareness ratings. Specifically this was evident amongst the three main networks of Palletways, Palletline and Pall-Ex. Brand recognition still remains a factor, however, for the next tier of network operators where the improvement in total spontaneous awareness was certainly evident, but less marked.

This is the second year of Triangle's customer survey in which some 300 customers despatching palletised shipments in the range of one to six pallets per consignment were surveyed by means of a detailed telephone questionnaire. Service providers have historically been the haulage sector and the parcels networks but in the last few years new specialist service providers have developed, comprising largely licensee-based networks of hauliers linked with a central hub operation. They are largely modelled on the UK express parcels networks who have, in the main, operated a hub and spoke systems for many years now. Some of the pallet networks are owned by the members and some are corporate or even privately owned. Triangle has estimated the current size of this market at £1.25 billion p.a. or over 100,000 pallets handled every night.

The Triangle survey also found, in terms of overall level of service in conjunction with price, that the specialist networks clearly score much better than the traditional parcels networks. “The majority of the specialist pallet operators appear to be successful in conveying to their customers, the shippers, a quality service for a value for money price” comments Robin Parr-Davies, Triangle's Head of Research and Consultancy. “However, one of the express parcels networks, Parceline, did manage to significantly improve its perceived positioning in this area showing that at least one of the express parcels operators is waking up to the potential of the pallet distribution business”, said Mr Parr-Davies.

“It seems that some of the express parcels companies are coming to see the benefits of specialism in the pallet sector. Last year for example saw Business Post establishing UK Pallets through the acquisition of one of the medium sized networks. We are expecting that there may well be more activity in this area and we await developments with interest” said Mr Parr-Davies.

Somewhat surprisingly the survey found that customers did not believe that the Working Time Directive would influence their pallet shipments. “The shippers are clearly saying to the service providers that the WTD is their problem and not the customers”, comments Robin Parr-Davies. “Within the industry the WTD is expected to have a significant impact on the rate of growth in the networks as operators will find it increasingly beneficial to send their shipments through a network rather than the more traditional direct running or milk round type of operation. The specialist networks can expect a year or two more of very healthy growth rates before the inevitable consolidations kick in” he added.


Notes for editors

• The 2004 Triangle report (The UK Pallet Distribution Survey – Wave 2) has been based on the long running (16 years) UK Parcels Distribution Survey which is today the standard benchmarking study for the express parcels industry. The Pallet Survey, at more than 130 pages, is a major industry satisfaction survey of 300 users of palletised distribution networks and includes both the specialist pallet networks and those express parcels carriers with an interest in palletised shipments. The report includes a profile for each service provider and a trend analysis for continuous subscribers. The survey is available for purchase at a cost of £11,000 + VAT

• As well as the UK Domestic Parcels Distribution Survey and this UK Pallet Distribution Survey, Triangle will also publish later this month a French Express Distribution Survey and a German Express and Parcels Survey. Later in the year Triangle will publish a UK International Express Outbound Survey. There are also plans to extend this form of customer satisfaction benchmark study to other European distribution markets such as the Republic of Ireland and possibly Italy or Spain

• For more information please contact Robin Parr-Davies telephone +44 (0)870 950 7900 email: mailto:RobinP@triangle.eu.com