Companies are always looking for ways to improve operations, cut costs and raise efficiency. One area that presents an opportunity for improvement, but is invariably ignored, relates to pallet management. Wooden pallets are an integral part of supply chains, being the basic framework on which goods are moved and stored. In real life, the behind-the-scenes logistics of owning, maintaining and managing these items often becomes very expensive and time-consuming. That's where pallet-pooling systems come into play. Pooling does have some real advantages for companies looking to shave operating costs and improve logistical efficiency, without the hassle of owning the pallets themselves.
How does it work?
The basic process of pallet pooling is relatively simple and can be condensed into a few key steps:
1. Order and delivery: A business that requires pallets raises a request for their need with a provider. The service provider delivers the requisite number of pallets to the facility or company's point of use.
2. Consumption: The pallets used by the business are put to work serving in shipment or storage just as if the business itself owned them. They can be put to use at their facility, but they can also be shipped to customers or partners to continue the supply chain.
3. Return or reuse: Once the pallets become superfluous for use, they are returned to the pooling provider or given to another business that may have joined under the same pool. The onus does not fall on the business in regard to maintaining unused pallets in storage or their maintenance.
4. Maintenance and repair: The pooling operator will inspect the pallets to repair and maintain them in good condition for their possible reuse.
Benefits of pooling systems Following are a few reasons why pallet pooling could just be the logistics strategy for your business:
1. Reduced ownership and maintenance costs Although the ownership of pallets seems to be a very simple solution, it actually holds a number of hidden costs. Added to the repairs and replacements, a business also has to consider storage and the headache of managing inventory levels. Pallet pooling wipes out these costs by transferring the burden of pallet management onto the pooling provider. This saves money while cutting down on the time and effort needed internally to manage pallets. Moreover, companies are no longer responsible for replacing broken or damaged pallets. The pooling providers regularly check and return them in such a manner that users are invariably supplied with premium pallets without afflicting them economically to buy new ones.
2. Scalability and flexibility Industries that experience fluctuating demand depend on their ability to scale up and down with pallet utilisation. Pooling offers flexibility like no other: a business rents only the quantity of pallets they will actually utilise at any given time. If demand increases, businesses quickly acquire more pallets without the initial buy-up cost. If demand decreases, they return the pallets, thereby reducing the cost of storing and maintaining them. This is fantastic for businesses that deal with seasonal work or enjoy very rapid growth, as their needs can be changed in real-time without overcommitting to long-term assets.
3. Efficiency in the supply chain With access to a well-maintained pool of pallets, businesses are able to reduce the risk of product damage in transport, ensure faster loading and unloading times, and more effectively manage inventory. Many systems also include tracking technology, enabling businesses to trace location and condition in real time. This level of visibility can enable companies to manage their supply chains more effectively, minimise losses, and hence communicate with logistics partners more effectively.
4. Ecologically sustainable With the increased sensitivity of environmental impact coming from businesses, sustainability has formed part of logistics and supply chain management. Pallet pooling enhances this by reducing the requirement for manufacturing new pallets, thus saving raw materials and waste. Pooling providers are usually designed to refurbish and reuse pallets multiple times before recycling them at the end of their life. This reduces the overall environmental impact of using pallets and supports companies in reaching their goals related to sustainability. Indeed, pallet pooling is normally considered a cornerstone of practices in the circular economy where resources are not disposed of but rather reused.
5. Risk mitigation Pallet pooling also protects companies from the risks associated with pallet shortage, something very common in cases of increased demand or disruption of supply chains. Outsourcing pallets from a specialised provider means that companies can have an uninterrupted supply of pallets without having to stock them up and without running the risk of situations leading to a shortage. Additionally, the provider must ensure that safety standards are maintained and comply with requirements, reducing liability from damaged or unsafe pallets.
Is pallet pooling right for your business?
While pallet pooling does boast several advantages, it might not be the perfect fit for every company. Indeed, those with foreseeable, low-volume pallet usage could find that buying pallets is more cost-effective in the long term. Then again, businesses needing highly specialised options might find it difficult to source these from a generic provider. Pooling provides an excellent way for many businesses, especially in retail, manufacturing, food and beverages and logistics, to save time, resources and costs.
These systems offer powerful interventions for businesses to wring more efficiency out of logistics, reducing the costs and complexities associated with pallet ownership. In essence, companies can return to core operations, have a secure supply of high-quality pallets within Australia and the flexibility to ramp up their usage all by joining a pooling provider.
Post Pallets are simple ways to stack product safely.
Most product stored on wooden pallets is unable to stack due the weights involved.
A post pallet allows the pallet to be sat on the post pallet base which can then be stacked up to 4
To heat treat your pallets, we place them in our kiln and heat it to a temperature high enough to kill any pests in the wood but not so high as to weaken the timber.We then mark that it is heat treated pallets, and issue a certificate.
