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Founded in 1994 in the UK, Palletways specialises in the express distribution of palletised goods. With more than 400 depots, more than 20 hubs and coverage in 24 European countries, it handles more than 45,000 pallets a day.

 

The company has just celebrated 18 years of presence in Spain, where it marked a turning point in the niche market of palletised goods. As a result of its success in Spain,  it did in fact extend its coverage to Portugal two years later, completing the network in Iberia. The Iberian network has been consolidated since then with more than 70 members, and it currently has five hubs located in strategic points of the Iberian Peninsula.

 

     

 

What has been the track record of Palletways' Spanish subsidiary?

Palletways was first established in Spain, with a sufficient number of members to cover practically the entire national geography, and then in Portugal, forming Palletways Iberia with the goal of revolutionising the distribution of palletised goods on the Iberian Peninsula. The company introduced the concept of express distribution, limited to parcel delivery until then, and marking a turning point in the market. Since then, we have grown steadily, both in terms of volume of goods distributed and in terms of customers, members and regional hubs. Our evolution has been characterised by the ongoing expansion of our infrastructure, and the implementation of advanced technologies to optimise operations and sustainable practices to reduce our environmental impact.

 

How important is Spain for the company's strategy?

Spain is a key pillar of the Palletways Group's strategy due to its geographical position, its role as a logistics centre in Southern Europe and its constant growth in the Iberian Peninsula. In fact, Palletways Iberia is key. Spain currently contributes two hubs to the European network, located in Madrid and Zaragoza, which indicates the group's commitment to our country as a central distribution hub, providing an efficient and reliable service for our customers throughout Europe.

 

What infrastructure do you have in Spain?

We have a well-established infrastructure in Spain and Portugal. We have five hubs, located at strategic points on the Iberian Peninsula, and which provide coverage to their areas of influence. The first was the central hub in Madrid, followed by regional hubs in Zaragoza and Bailén (Jaén). And last year, we went a step further and opened the regional hub of Catalonia-Balearic Islands and the regional hub of Levante. Two new key areas for Palletways Iberia that further strengthen our commitment to efficiency and to providing a service that offers excellence and proximity. In addition to the hubs, we have an extensive network of over 70 local members, ensuring full coverage and fast, reliable service throughout the Iberian Peninsula. These are leading companies in their respective regions that share our values of efficiency and sustainability, enabling us to maintain high quality standards in our operations.

 

What does your fleet look like?

Thanks to the commitment to excellence of our members, we have a large fleet of vehicles to distribute palletised goods. We estimate that more than 900 vehicles are used daily for Palletways Iberia's palletised goods management. The network's vehicles are also being constantly renewed, opting for more sustainable and efficient options. These include duo trailers and mega trucks, which enable a greater volume of goods to be transported while reducing environmental impact and minimising costs. The first member of Palletways Iberia to incorporate a mega truck into its fleet was Transmayfa, in Cantabria, in 2017, and since then more and more have supported this strategy. The company currently has a total of six duo trailers and 25 mega trucks. These vehicles can carry 38% more load than a normal truck, as well as offering greater safety, optimising transits, and reducing costs and the carbon footprint. We are confident that this figure will continue to grow this year and in the coming years thanks to the logistical and sustainability benefits they bring.

 

What have been your most important investments in Spain to date?

Palletways continually invests in three pillars: our internally developed state-of-the-art technology, our physical infrastructure and, most importantly, our people, who are undoubtedly the great differentiating asset at Palletways. In recent years, we have significantly strengthened the sales and marketing area to provide professional and persevering support to the commercial activity of all the network members, in order to sell more and better. We have also strengthened and expanded our hubs, equipping them with the latest technologies and locating them in strategic regions to optimise times and routes. Our latest investments include the relocation of our southern hub to Bailén in order to respond to its exponential growth and offer an optimum service in this area, and the relocation of the central hub to a larger capacity warehouse in Alcalá de Henares (Madrid), designed to improve operability and environmental management. Building on the success achieved in these regions, in 2023 we wanted to go further and opened two new regional hubs: Barcelona, covering Catalonia and the Balearic Islands, and Levante, for Castellón, Valencia, Alicante and Murcia. These facilities integrate Palletways Iberia's principles of quality, sustainability and innovation, with advanced technological systems and environmental management tools. All our investments are always focused on improving the operational and commercial processes of our network, bringing productivity and business development to all Palletways members. All these improvements are integrated, and with a remarkable degree of automation, in the development of our IT portal, our own software that, supported by big data and artificial intelligence, improves the productivity of all network resources.

 

What role do new technologies play in your work?

Palletways Iberia is synonymous with innovation, and the incorporation of new technologies does play and will continue to play a key role in our work. They enable us to optimise operational processes, improve efficiency in supply chain management and provide accurate tracking of shipments.

We do therefore have an in-house team of specialised developers who design systems and programmes, meaning that we provide unique and pioneering systems in the industry to optimise operations. The latest innovation, launched by the company this year, is Palletways ID (information data or ID identity). This technology means that when the operator responsible for driving a forklift approaches the pallet, the equipment autonomously identifies and reads the barcode on the Palletways label, takes photographs of the pallet and obtains information about its weight and volume on arrival or departure from a hub. Another new feature is the integration of the group's latest project, called live exceptions, which will facilitate real-time detection and management of exceptions to be resolved immediately. In addition to all these technological advances, artificial intelligence is gaining importance at all organisational levels of the company. Progress is now being made in implementing AI tools to analyse information from the data warehouse, identify trends, optimise resources and improve software. Palletways' goal is to ensure that this tool  enables our team of professionals to focus on more commercial and productive activities. In the future, we will continue to invest in technological innovation in order to remain at the forefront, adapting to market needs and guaranteeing the highest quality in our services.

 

How many employees do you have in Spain?

We currently have 115 direct Palletways Iberia employees, in addition to our team of more than 70 members. Thanks to their commitment and focus, we are a benchmark in the express distribution of palletised goods. Indeed, as I have already mentioned, we continue to invest significantly in our staff. So we are responding to our growth by adding new talent, and in this regard, we anticipate an increase in headcount as a result of our ongoing strategy to expand our operations and open new regional hubs. Our goal is to continue to strengthen our team and provide them with ongoing training in order to maintain the quality and efficiency of our services, adapting to the growing demands of the market.

 

What will be the next challenges?

We are at a time of transformation in the industry where technology, sustainability and generational shifts in consumer behaviour play a crucial role in a scenario of growing uncertainty. So, although our goals are very ambitious, based on the growth we have been achieving in recent years, we need to be mindful of the above factors to turn these challenges into new opportunities. The truth is that we are facing a major problem of driver shortage affecting all EU countries. We are therefore addressing this issue by supporting these companies in providing qualified staff, changing certain access regulations and improving the offer. Technologically speaking, we are also facing the challenge of the arrival of AI in our industry. In this regard, it is crucial to train and adapt to it as soon as possible. In terms of sustainability, we have won the Lean & Green Award, which is headed in Spain by AECOC, and is thanks to the measures implemented to guarantee an environmentally friendly logistics activity. In addition, we are committed to reducing our carbon footprint by 20% over the next five years. To complement this , we are at the same time implementing a strategy of territorial expansion to shorten transit times, offer greater flexibility in deliveries and reach customers in hitherto unexplored areas.

 

^{Photos: Palletways Iberia}