United Pallet Network (UPN) is predicting that its newly-extended hub will be close to capacity by next July. The network has recently completed a 20,000ft2 extension to its Melton Mowbray, Leicestershire-based hub, and forecasts that further extension will be required next year to accommodate its target volume of 3,000 pallets a night. UPN has seen a 33% growth in volume through 2007, and is currently handling around 2,400 pallets a night.
National sales director Simon Hazelgrove says 11 new members have joined the network during 2007, pushing the total to 57. The target for 2008 is "a minimum of 65", he says. "Our strategy going forward is postcode consolidation. The growth we've experienced has given us more volume, and bringing in more members to cover larger areas will give better service," he explains, adding that more hauliers will look to make networks a part of their business in the future.
He adds: "There are still enough hauliers out there for the current networks and as we keep seeing fuel rising, the next wave of people will look to join." The network has invested more than £500,000 over the past year, with £200,000 spent on the hub extension - including fitting CCTV cameras at the entrance, exit and every loading point and bay - as well as upgrading the IT system.
A further £300,000 has been used to add ten new positions to UPN's senior management team, and up to £100,000 has been set aside to develop barcode scanning in and out of the hub over the next year. UPN has had around 20 applications to its shareholder membership scheme, whereby members are essentially eligible for gift shares, providing certain criteria are met. Previously, chairman Martyn Chapman owned the whole company, but up to 80 members will now be able to apply for a cut of 25% of the network's shares.