Measham, United Kingdom (PressExposure) August 11, 2009 -- PPS Equipment Management Ltd has been providing services connected to returnable transit packaging for the past six years from its Midlands base. The original concept of the company revolved around the sale of plastic pallets (the company started life as "Plastic Pallet Systems", later shortened to "PPS") into applications where hygiene issues were of paramount importance - with the food sector being an obvious target.
Subsequent years saw the company develop into a provider of services, rather than sales of products. And so today, PPS has a large fleet of a range of returnable packaging equipment - plastic food crates, plastic pallets, plastic boxes, trays and wire containers. The ethos of the company has developed into that of a behind-the-scenes service provider.
Why "behind-the-scenes"? Well, if for example you are a provider of fresh poultry products to the wholesale or secondary processors your primary focus, is naturally on the product - i.e. the fillets, wings, breast meat etc. This is where you generate your revenue, not on the carrier medium. Therefore the crates, pallets and so on assume a marginal importance - that is, until they unexpectedly run out of them!
This is where PPS steps in - they contract with the poultry producer to supply an agreed number of plastic crates and pallets on a weekly (or daily) basis. The producer packs his products into the crates and sends them out to his customers, entering details of the consignments on Enable, which is the PPS proprietary online asset tracking system. And in effect from that point the poultry producer's involvement with the packaging medium ends; it is now up to PPS to retrieve the crates and pallets from the third parties, return them to its Measham site where they are all washed to the highest standards (the company recently achieved ISO 22000:2005 accreditation) before being returned to the equipment pool, ready for the next outward delivery.
This then is the background to the ongoing success of the PPS operation and continues to be their core business.
PPS does however have a progressive outlook and they are continually looking for new products they can use in their promotion of returnable transit equipment. Having promoted the concept of returnable transit equipment through the media and word-of-mouth, and of course by building a solid reputation with a number of customers, they found they were being asked to supply other types of returnable equipment.
Most notable was the numerous requests for metal roll cages. PPS then started to sell small quantities of roll cages, sourced from a number of local traders. Due to the nature of this market segment and the margins possible being simply another cog in the supply chain, PPS started to consider how best to source these roll cages.
It was clear that almost all roll cages being currently sold in the UK are sourced in China - and PPS decided they would also investigate the possibility of buying roll caged directly from the Chinese manufacturer, thus cutting out a number of middlemen (and hopefully their margins!). Company Director David Peggie made a trip to China recently where he met with a number of manufacturers with extensive export credentials. The upshot of this trip is that PPS has recently received their initial consignment of roll cages at their Measham site. Along with standard roll cages, this same manufacturer offers steel pallet cages and a number of these were included in the first delivery to PPS.
PPS now feels that having established a good link to the Chinese manufacturer and negotiated favourable prices and payment terms, they have every confidence in launching a full-on marketing campaign to the packaging, logistics, wholesale, packaging industries - in short anywhere and everywhere there may be a need for a strong and robust yet lightweight mobile storage, packaging or transport medium.
The company is however aware that there are a number of other suppliers of roll cages in the UK and that they faced competition from older, more established suppliers. The advantage PPS has of course is that for years they have become very proficient in the rental and subsequent management of transit equipment. So now they can offer roll cages, not only as a direct sale product, but critically can offer their full service whereby they will supply clients with an agreed number of roll cages (or steel pallet cages) on a rental basis. PPS has found that a considerable number of companies, even large and well-known businesses, do not always have a capital expenditure budget readily available.
Director David Peggie adds "PPS has established a solid reputation as a supplier or services all connected to returnable transit packaging. Our early expertise was gained supplying crates and pallets to the poultry sector but we began to realise that we could apply that knowledge to other products - in this case roll cages. We know how to manage equipment, which in simple terms means getting it back! We intend to offer clients roll cages or other similar products on long- or short-term contracts and look forward to developing this exciting addition to our business portfolio".