Maintaining a steady inventory and product stream can bring about all sorts of costs and complications for logistics professionals. While there are a range of factors, one of the most complex is the flow-on effect mismanaged pallets can have on your bottom line.
The good news is, with proper pallet management techniques in play, you can actually save money for your business (and even turn it into revenue) – here’s how.
The hidden costs of using owned pallets
You are most likely well aware how quickly pallet costs can add up. Transport companies are often hit hard by wasting a large amount of money in the following areas:
- Lost and misplaced pallets
- Cost of managing, tracking and recovering pallets
- Charges from write-offs
According to Deakin University’s Australian Pallet Survey, it is estimated that there are 140 million pallets in the Australian market and the pallet floats held by one third of respondents were greater than 10,000 pallets at a given time.
Working in logistics most likely means you’re no stranger to the countless headaches managing a large number of pallets can bring to the table. It requires continued procurement of new pallets to replace the ones you are sending off, resulting in a constant trade and potential added expenses that offer virtually no return.
Determining where pallets are at the end of a supply chain can be a challenge and finding transportation to bring them all back is even more complicated. That’s why many companies choose to take a different route and hire the pallets instead. However, hiring pallets still comes with its fair share of challenges too, from pallet loss to invoicing, it can at times be just as costly and complex. That’s where PPM comes in.
The benefits of using Precise Pallet Management
While 44% of respondent companies indicated that the cost of pallets in purchase or rental was a concern, the largest concern indicated by respondents relates to pallet control, with the management of pallet inventory and the loss of pallets.
To combat this statistic, Precise Pallet Management was able to achieve 74.5% reduction thanks to the implementation of effective processes as well as providing training to relevant staff members.
For a transporter client, PPM delivered a software solution which enabled us to manage and report with exceptional accuracy. Through identifying trading partners who were not following correct processes, PPM was able to uncover damaging pallet losses. By upholding an ethical standard of practice in the pallet industry, the PPM team was able to return over 7,000 pallets back into the marketplace over the course of a few years. PPM also successfully recovered over 4,500 pallets in one recovery project in 2019 for a warehouse client.
PPM has decades of experience in the industry, working with a range of clients across Australia. Through careful pallet control, auditing and invoicing, our services have led to a 62% reduction in pallet cost for businesses and in some cases transformed pallet costs into revenue.
Reduce your overhead with Precise Pallet Management
We seek to solve pallet issues by maintaining a network of clients that allow them to move pallets around the supply chain efficiently. By managing your overall pallet inventory, PPM can also help upkeep a reliable supply of pallets that are studier and more durable. Pallet auditing can also eliminate useless expenses for neglected pallets.
To learn more about how we can reduce your pallet costs and turn pallet expenses into potential revenue for your business, contact our friendly team today. Give our Melbourne office a call at 03 9020 4700 or send us an email at firstname.lastname@example.org to learn more about our customisable services.