Professionals in the field of logistics have to deal with the problem of pallets. The transport of goods from manufacturers to warehouses or retailers involves the use of pallets. Professionals know how tough it is to find a mode of returning them to the beginning of the supply chain for re-use.
There are problems involved in the usage of pallets such as sorting, stacking, or getting rid of unusable pallets while attempting to reduce the cost for the company. Companies even wish some others would reclaim used pallets, saving them the cost and effort in disposing of them. This is where the concept of pallet pooling comes to the rescue.
By definition, the process of pallet pooling implies either renting out or leasing pallets in a pool. Hence, if one is required to transport products or goods, one can lease or rent a pallet pool in place of buying new pallets every time. This way is much cheaper, and minimal supervision is required to maintain the pallets
Use of Pallets
Typically, pallets are used in the form of a surface upon which containers of the company can be stacked, and there are lifting machines that can aid in carrying the items and place them in the pallet port or transport vehicle.
While the goods are on stand-by, either having reached their destination or are being shipped, it is good to have them stored in a secure pallet port. But the use of pallets Sydney is a costly endeavour. So, in place of buying and maintaining one’s pallets, one can choose to use services of third-party pallet pooling companies.
Work of Pallet Pooling
A pallet pooling company in Brisbane will help in managing pallets of the company. In place of purchasing one’s supply of pallets, they can be rented from a shared pool. The pallet pooling company makes sure that a batch of pallets is in good condition and ready for use arrives at the facilities where they are required.
They will also arrange that the pallets which have been used are taken to other companies or back to one’s production facilities. The service provider of pallet pooling takes care of the reverse logistics all through the supply chain required to recover these pallets for re-use by you or other manufacturers. Thus, by saving the company from managing its supply of pallets, a program of pallet pooling lowers the complexity of pallet buying, managing, and recovering and reduces costs for business.
Why Pallet Pooling?
When companies opt to buy their pallets and manage them in-house, they end up operating two parallel businesses, such as a parallel supply chain for their products. Such a parallel operation contributes to substantial labour and transportation cost to the expenses of the company. Re-usable pallets may even end up competing with products for storage space and transportation. The impact of managing one’s own parallel supply chain fleet becomes a waste of company resources and time and distracts one’s attention from the core business.
Another issue is when companies opt for one-way stringer pallets to avoid the hassle of re-usable pallets. They come in various grades, which are based on how many trips they have undergone in the supply chain. The best among them is the ‘Club Grade,’ which has never been used or repaired and costs a premium price.
Hence, one-way pallets from Brisbane have to deal with the issue of criteria set by retailers to accept only pallets of a certain quality. Naturally, there is most demand for Club Grade pallets. Such retailers may reject loads based on the quality of pallets. Some manufacturers who rely on one-way stringer pallets often wind up purchasing top tier pallets to ensure the acceptance of their loads.
Renting pallets from a shared pool provides significant savings and a higher ROI (Return on Investment). This is why it is becoming increasingly popular with suppliers and manufacturers. The pooling of pallets helps make maximum use of reusable pallets. Pallet pooling set up a network to collect, sort, repairs, and re-send the pallets. This allows the company to get rid of the extra costs of storage and maintenance as well as labour. It also enables the reduction of transport costs, since pallet pooling avoids dead legs and exploits the coordination of transport services.
These are some of the issues related to pallet pooling.