Spring 2008

A multi-channel fulfilment company that started life in Jersey is poised to open its first mainland base

You've probably heard about the rise in fulfilment activity from the Channel Islands in recent years, but one Jersey-based fulfilment contractor, Professional Fulfilment Services, is now turning the tables by setting up a base in the UK mainland.

 

'Our marketing position is that we are a national warehousing and fulfilment partner for e-commerce customers,' says director Michael Boarer. 'Our customers can place their business in a location that suits them best.'

For smaller lower-value items this might be in Jersey or Guernsey, he says (the company has bases on both islands), while for higher-value products it could be in mainland Britain.

PFS had not finalised the location of its mainland location when we spoke, but discussions were in progress on a promising site in Cardiff. 'We are already talking to several potential clients about mainland-based fulfilment operations,' Boarer told F&E, 'and we are scheduled to go live with an operation for a major retailer in Q2 of this year.'

Anyone studying the economics of fulfilment from the Channel Islands will be aware of the Low Value Consignment Relief, which exempts consignments destined for the UK mainland and valued below £18 from VAT liability. Boarer makes no secret of the fact that his company can offer fulfilment of this type of product. 'It's one of our strengths,' he agrees, 'and it was the original focus of our business when we first opened our doors.'

However, the push to set up a mainland presence is evidence enough that the company is not depending on external factors such as this for its future success. 'Our value to clients is a cost-effective service, quality and commitment,' Boarer says.

He adds: 'We have good people management skills and process design capabilities, and we understand the need for intelligent stock management and reduction of mis-picks.' He accepts that fulfilment is highly price-driven on the UK mainland, 'but our service quality is the long- term measure of effectiveness.'

The PFS team drew confidence for this expansion last Christmas, when they were able to cope successfully with a tenfold increase in traffic volumes. 'We have proved to ourselves that we can flex in response to this kind of demand fluctuation, and we're now set to scale up that ability full-time.'

Boarer says PFS can offer a complete end-to-end fulfilment service, including online retail shop-front, payment processing, storage and delivery management. 'We tell customers: *You focus on your core business, we'll manage the rest'.'

The IT capability is underpinned by an associate company, but in effect it is provided in-house. 'We're very strong on technology.' The company can also provide contact centre services through partner-companies, either in Jersey or on the mainland.

We wondered how easily the Channel Islands-based PFS management team would be able maintain face-to-face contact with UK-based customers. No problem here: PFS already has access to a private plane for island-hopping, and this is coming into its own for travel to and from the mainland. Boarer himself has a pilot's licence. 'I can reach Cardiff more quickly from here than from London,' he says.

He feels his company's ability to offer both offshore and conventional mainland fulfilment, backed up in both cases by a strong portfolio of IT and management resources, makes PFS a unique proposition for UK retailers seeking a fulfilment partner. 'It might seem a clichˇ, but we really are offering the best of both worlds.'

With customers such as Woolworths already on board, PFS has quickly built up a strong track record with a demanding user base, and it's hard to resist the conclusion that more such users will quickly follow. If you hadn't thought of a company like this for your fulfilment needs, maybe it's time to reassess.
www.pfs.je