Thursday 20 September 2012

Pallets are important part of logistic management

Definition: Pallets are “portable platforms,” which facilitate the movement and storage of unitized goods.

One important link in the supply chain of goods is pallets; little timber crates on which most goods are secured for movement and handling. However, despite their relatively small role, they are ever-present, which means changing the way we think about them and how we use them can have a massive knock on effect to the whole supply chain due to their sheer numbers. Without pallets, very few supply chains can function effectively.

Costs:

The costs of pallets can cover the purchase of the pallets, the maintenance of the pallets, the replacement of the pallets and transportation of the pallets. To savemoney companies can switch from owning their own fleet of pallets to using a pallet pooling service.

Safety and hygiene:

The mass transit of goods will always lead to damages or accidents, to both goods and people, which ultimately have a cost. However, the role that pallets play in this can be reduced. Plastic pallets are superior to timber; as they do not splinter, very easy to disinfect, making them very hygienic, especially for the transportation of foods or medicines.

Ease of use:

With plastic pallet, size and dimensions can be monitored and standardized.

Environmental impact:

The last way that pallet management can benefit the whole supply chain is environmentally, which is increasingly an issue for the transport industry.

By switching from timber pallets to plastic pallets-
-less pallets required as they last a much longer and do not require replacement
-Fuel bills as plastic pallets, although as strong, are not as heavy as timber pallets
The environmental savings can be pushed further by companies switching from owning their own pallet fleets to renting pallets.

Although pallets seem a small by-product of the shipping industry, their sheer number means that they have a big impact on the costs of shipping. But, by transport companies examining what sort of pallets they use, and how they manage their fleet, they can help themselves makebig cost savings, which can be then passed along the chain, all the way to the retailer and the end customer.


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