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Can You Pool Pallet Services?

Using pallet services, there has been standardisation and normalisation of the logistics process. Pallets are crucial in protecting cargoes and enhancing the efficiency of logistics. Pallets can be made of plastic, wood and steel.

Loscam
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Can You Pool Pallet Services?

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  1. CAN YOU POOL CAN YOU POOL PALLET PALLET SERVICES? SERVICES? Pallets are an innovation in the logistics industry and are the unsung hero of logistics. They are so common that they are found in nearly every scenario of logistics operations, like packaging, warehousing, transporting, unloading and loading, etc. Using pallet services, there has been standardisation and normalisation of the logistics process. Pallets are crucial in protecting cargoes and enhancing the efficiency of logistics. Pallets can be made of plastic, wood and steel. The most common material used for pallets is wood. In spite of diversity in pallet structure, flat pallets are most commonly used. Pallets pose unique problems for logistics. It is very hard to find an economical way to return them to the beginning of the supply chain for reuse. Hassles include sorting the pallets, stacking them, and getting rid of damaged pallets while making sure that the loss of income to the company is minimal. Very often, it is very hard to dispose of old pallets that can no longer be used. This is a common challenge in the supply chain, but solutions can be found. One popular solution is that of pallet pooling. How pallet pooling work A pallet pooling company takes on the task of managing pallets. In place of purchasing your own pallets, they can be rented from a shared pool. It is the responsibility of the pallet pooling company to ensure that pallets in good condition and ready for use arrive at your facility on time, whenever they are required. The company will also arrange for used pallets to be transported to other companies or back to your production facilities. A pallet pooling service provider takes care of reverse logistics throughout the supply chain, which is required to recover these pallets for reuse or to send them to the manufacturer for repairs. By protecting the company from the need to have its own supply of pallets, a program of pallet pooling reduces the complexity of pallet management, recovery, and procurement. It helps in reducing TCOB (Total Cost of Business) as well as wastage of resources. Why pallet pooling? Companies that choose to purchase reusable pallets and manage them in-house act as two separate businesses and a parallel chain of supply, simply to offer a shipping platform for their products. By running your business in this way, the labour and transportation costs for the company build up. It is also possible that reusable pallets may end up competing with products for storage and transport. Such an impact of managing your own pallet fleet wastes the time and resources of the company and serves to distract from the core business. Manufacturers who depend on one-way stringer pallets often wind up purchasing top-tier pallets to ensure acceptance of their loads. Such pallets come in various grades, with the premium grade dubbed as ‘club grade’. Retailers often push for club-grade pallets from suppliers. These pallets may be used to directly display products on retailer shelves. Retailers don’t want their customers to be turned off from making purchases by a visibly degraded or stained pallet. These retailers will stop accepting supply from companies that repeatedly ship products on pallets of undesirable quality. Renting pallets from a shared pool provides significant savings and a substantial return on investment, which accounts for its adoption by the majority of suppliers and manufacturers. Without a doubt, pooling solutions of reusable pallets leads to better relationships with retailers. Pallet pooling takes care of the collection, sorting, repairing, and re-use of pallets. It removes additional costs of labour, storage, and transport. Transport costs are also lowered. These are just some of the advantages associated with the pooling of pallet services as a great alternative to the traditional form of pallet use and storage by logistics professionals. Source: https://www.loscam.com/

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