Professionally managed pallet programs yield cost savings, transparency, and optimization now while positioning pallet users for the future.
Such programs increase the value of every dollar spent in multiple ways. While each is tailored to the customer’s individual needs and operating environment, all share the benefit of direct cost savings.
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A well-planned and executed pallet program provide increased value in two major ways: transparency and optimization.
Transparency: Information, goals, and execution must all be transparent. Commodity buyers typically name pallets as among the most difficult product categories to manage. Complicated questions arise: Why did pallet prices rise in the east this quarter? What’s driving the market price? Are we using the best design? What have we done to improve? Why don’t we have clear data on pallets as we do for other raw materials?
A well-developed pallet program provides the transparency necessary for those questions to be answered. The current environment can be documented, allowing for the tracking of changes and measurement of progress.
The program manager can personally verify and record pallet specifications at all locations, as well as service requirements, ordering processes, and all interactions between pallets and products.
Optimization: A successful pallet program relies on users’ ability to optimize physical pallet design, sourcing plans, and the way in which pallets interact with the greater supply chain. Pallets are a pivotal point in the chain and should be considered a strategic purchase. Companies strive for maximum value out of each dollar spent.