Your choice of pallet provider may seem of minor importance; however, pallets impact costs throughout your supply chain. They affect many different aspects of how your distribution system or warehouse operates and these can have a dramatic effect on your profitability and production line. What areas do pallets impact? How does your choice of pallet provider affect these areas?
Sourcing – The first area of the supply chain affected by your choice of pallet program is that of sourcing your pallets. The wrong choice can leave you paying too much money for inferior pallets. It can also affect other things. For instance, searching for providers incurs additional time and effort, as well as money.
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Managing your pallet providers is also time-consuming. Ensuring you have an adequate supply of pallets is important and can lead to using multiple providers. This, too, costs time and money.
Warehouse Storage – Storing surplus pallets can seem like the only way to ensure you have the right number on hand at all times. However, the cost incurred by turning warehouse space into storage space for these pallets is considerable and reduces the effectiveness of your operation. Storing pallets within your warehouse or even on the property affects your entire supply chain and reduces profitability considerably.
Distribution – Most pallet providers force you to work within their existing framework, rather than working with you to find a mutually beneficial solution.
For instance, pooled pallet providers limit your effectiveness by limiting the locations to which you can ship. In addition, bulky, heavy, block pallets take up considerable space within trailers. Using stringer pallets is an excellent way to provide benefits to your supply chain, by maximizing the number of pallets on each trailer. This can affect all customers, ensuring they have a full run of products for reselling.