Tag: Precise Pallet Management

Enhancing Supply Chain Efficiency with Pallet Management Systems

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Pallet Management Systems

For the supply chain, which consists of pallets, crates, and containers, to function smoothly, optimal supply and efficient pallet management systems are essential. For large volumes of returnable transport packaging (RTP), a comprehensive system is crucial for tracking and monitoring the entire supply chain from a single platform. Pallet management systems, such as those for Loscam or CHEP pallets, can result in faster transit times, better resource utilisation, improved life-cycle management, and overall cost savings. This blog discusses the importance of a pallet management system, highlighting potential causes of overstocking in returnable pallets, the cost of stocking reusable containers and pallets, and its potential to enhance supply chain efficiency.

What Exactly Is a Pallet Management System?

Pallet management systems, or pallet software applications, help optimise supply chain efficiency. These systems digitise various aspects of the supply chain, such as tracking and monitoring RTP transportation, automating pallet counting, and monitoring the speed at which RTP moves throughout the supply chain. This optimisation not only reduces costs but also creates a more efficient and continuous supply chain.

What Are the Possible Causes of Overstocking in Returnable Pallets?

Several factors contribute to overstocking in returnable pallets, including:

Offsetting Warehouse Inventory: Inventory in use is effectively removed from circulation and must be offset, requiring regular rotation to avoid high holding fees.

Dealing with Split Loads: Dividing a single shipment into smaller loads for different destinations increases the need for more supply chain assets.

Buffer Stocks: Maintaining a buffer of RTP containers is critical to compensate for any shortcomings and ensure smooth operations.

Absence of Automation: Manual handling of supply chains leads to inefficiencies and inaccuracies, creating pressure to hold inventory.

Urgent Need to Match Production Schedules: Lack of pallets or crates can disrupt production lines, especially in industries like automotive manufacturing.

Changes on the Demand Side: Inconsistent throughputs in industries like automotive spares and textiles can lead to RTP being held up or taken out of circulation.

Reverse Logistics Delays: Poorly managed supply chains can result in time-consuming pallet recovery processes.

Misplaced or Lost Inventory: RTP is often lost, misplaced, or damaged, encouraging suppliers to overstock due to lack of visibility.

What Costs Are Involved in Stockpiling Reusable Containers and Pallets?

Stockpiling reusable containers and pallets incurs several costs, including:

Paying for Standby: Added stock as a buffer requires accounting for incoming and outgoing shipment charges.

Increased Warehousing and Storage Costs: Additional funds are needed for extra pallets and containers introduced into the supply chain.

Increased Rental Fees: Extra stock requires additional space, leading to higher rental fees.

Increased Working Capital: Building buffer stock necessitates more working capital.

How Can a Pallet Management System Maximise Supply Chain Efficiency?

Manual recording of supply chain management procedures can lead to inefficiencies and increased costs. A pallet management system helps by:

Streamlining Inventory and Reducing Losses: Improved visibility and control over supply chain assets.

Providing a Single Digital Platform: Enhances efficiency by consolidating supply chain visibility.

Offering Precise Inventory Visibility: Including Loscam and CHEP pallet sizes and dimensions for accurate tracking.

Reducing Asset Shrinkage and Safety Stock: Minimizes losses and optimizes resource utilization.

Improving Management Efficiency and Traceability: Prevents overstocking and overuse of buffers.

Conclusion

Overstocking returnable pallets and containers can lead to inefficiencies, increased costs, and logistical challenges in the supply chain. Pallet management systems improve visibility, automation, and control of supply chain assets, reducing shrinkage and optimising resource utilisation. Considering every aspect of the pallet, including Loscam and CHEP pallet dimensions, modern systems are crucial for supply chain optimization.

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Loading Dock Safety Tips: Storing, Loading and Moving Pallets

Manually moving your product onto pallets can cause unavoidable stress on the body, if you are not careful this can lead to debilitating injuries to shoulders, knees, and lower backs. These injuries can occur suddenly or gradually over time. When a safe work system is in place the risk of an accident or unnecessary wear and tear can be minimised.
Here is how to stay safe when storing, loading, and moving your pallets in the loading dock.  

Storing Pallets:

Pallets need to be stacked in flat, stable piles.
A pallet lifter is required when unloading or loading pallets above shoulder height.
Empty pallets should always be stacked vertically, pallets on their side are unstable and can cause injury if they tip over.
Stack like with like. The safest way to store pallets of different sizes is to separate them into piles that contain the same pallet’s dimensions and material. For example, stack plastic pallets with plastic pallets; wood pallets with wood pallets, etc.
Ensure stored pallets are maintained and kept in good condition.

Moving Pallets:

Always secure your load before moving it, many loads will need to be shrink-wrapped or banded to the pallet during transportation.  Only those with an operator license and appropriate training should be using the scissor lift, forklift or hand truck to move pallets.  Make sure you plan your route when moving pallets, ensuring there is a safe path of travel, with no obstacles or trip hazards in the way.  When using a forklift ensure pallets are placed squarely onto the forklift platform and avoid making sharp turns.  

Loading Pallets:

A product first needs to be deemed safe to load, this can be by hand, multiple staff or with the assistance of a mechanical aid. If a load is too heavy for you to lift without assistance, do not attempt to lift it. Ask for a coworker to help you lift or use a hand truck or forklift to transport it for you.  When loading by hand, you should prepare appropriate grip and stance, standing close to the product with your feet shoulder-width apart. Then, lower yourself down to the load by bending your knees. Once you have a firm grip on the product, lift with your legs and remember to keep the load close to your body while lifting, preventing unnecessary strain on your back. Ensure you do not twist or jerk suddenly. When loading your pallets the centre of gravity should be in the centre of the pallet, too much product on one side may cause the pallet to tip and fall over.  Never step on a pallet to place a product, instead position it on the pallet and then slide it over to the centre, ensuring the weight is evenly distributed.  For larger loads that require powerful lifting equipment, always check to see that the weight of the load does not exceed the lifting capacity of the equipment.

Other Loading Dock Safety Tips:

All pallets should be inspected when they are first delivered to your site. Take the time to look around for loose or broken boards, splinters, cracks or protruding nails.
Keep your warehouse clean. Debris on the floor can cause dangerous accidents.
Wear the appropriate personal protective equipment (PPE). You should have the correct shoes or boots suited for the environment you are working in. Consider eye protection, earmuffs, or leather work gloves if necessary.

Work safety is a continuous process –

It is not enough to just adhere to these safety tips: you need to ensure that all employees receive adequate training and supervision while operating in the loading dock area. Employees who use the load shifting equipment, such as forklifts and powered pallet jacks, or work in the loading dock area should be trained in the safe operation of the machinery and understand the hazards and risks in manual handling.

It is everyone’s responsibility to take care of each other while on site. These pallet safety tips and best practices can help prevent avoidable injuries.

Other Loading Dock Safety Tips:

All pallets should be inspected when they are first delivered to your site. Take the time to look around for loose or broken boards, splinters, cracks or protruding nails.
Keep your warehouse clean. Debris on the floor can cause dangerous accidents.
Wear the appropriate personal protective equipment (PPE). You should have the correct shoes or boots suited for the environment you are working in. Consider eye protection, earmuffs, or leather work gloves if necessary.

Work safety is a continuous process –

It is not enough to just adhere to these safety tips: you need to ensure that all employees receive adequate training and supervision while operating in the loading dock area. Employees who use the load shifting equipment, such as forklifts and powered pallet jacks, or work in the loading dock area should be trained in the safe operation of the machinery and understand the hazards and risks in manual handling.

It is everyone’s responsibility to take care of each other while on site. These pallet safety tips and best practices can help prevent avoidable injuries.

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Why reconcile your invoice?

A pallet account is a lot like a bank account except anyone, even from other companies, can raise transactions so, reconciliation is a must. 

Check all the transfers onto your account and make sure you have received all the pallets being added to your hire account.

Sometimes you agree that you have received pallets but you may disagree with the date, quantity, or equipment type. 

If this is the case, you can advise CHEP or Loscam to correct the detail. Other times you may need to reject the transfer completely. 

Check also that all the transfers you raised off your account have been processed on the hire company invoice and that they have not been corrected or rejected by your trading partner.

Lastly, confirm that any pallets collected from the hire company or returned to the hire company have processed on the invoice.

So, how do you do all this?

Well, it all starts with excellent record keeping.
Preferably you will use software that not only records transactions but has invoice reconciliation features. 
Now that your invoice is reconciled, count your pallets and you can understand your pallet position.

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