Pallets Impact the Cost of Logistics Operations

No matter what type of warehouse or distribution center you might operate, the humble pallet plays an integral role in the cost of running it.Β The seemingly insignificant pallet, introduced to logistics and distribution in the 1920’s, has come to play a prominent role in almost every aspect of your operation and has an enormous impact on the costs associated with warehousing and storing any type of product.Β Without pallets, organizing, maintaining and staffing a warehouse or DC would be a very different picture than it is today.

However, as beneficial as the pallet has been over the preceding decades, pallets can cost your logistics company an enormous amount of money each year.Β How can the simple pallet impact your operating costs?Β For instance, if your company utilized nonstandard pallets in your warehouse environment, storage space is certainly at a premium.Β Because nonstandard pallets come in a variety of lengths, widths and heights, they can wreak havoc on your racking system, thus costing you thousands of dollars annually, simply from not making correct use of your space.Β Of course, stringer pallets are a better option even than block pallets, for several reasons.

Why should you opt for stringer pallets in your logistics operation? Block pallets are well over 5 and Β½ inches in height. Stringer pallets are less than 5 inches in height, which can help free up additional space within your racking pallets in Jacksonville system with which to store additional merchandise or materials. The choice to use stringer pallets can simultaneously reduce operating costs, while increasing efficiency. Of course, there are numerous other reasons to take a more in-depth look at your pallet program and ensure that everything is running as smoothly as possible.

As any supplier knows, pallets can represent a high-theft environment in numerous ways.Β One way to counter this is through active vendor management and inventory management procedures.Β Of course, empty pallets are often more tempting prizes than the often-unattainable merchandise or materials transported on the pallets.Β If you have incorrect empty pallet storage procedures, your company could be spending tens of thousands of dollars each year, needlessly.Β Pallets represent an incredible resource for logistics, but also an expense.Β Without an accurate, secure pallet inventory system, your company’s logistics can be compromised.

Thankfully, outsourced are available to assist you.Β These companies can provide numerous benefits, from pallet management solutions to deliver of pallets in time for use, without the need for you to store pallets onsite.Β This provides two immediate benefits for your logistics operation: first, it removes the issue of pallet security.Β Since empty pallets are not stored indefinitely on site, there are no additional security issues to concern you.Β Second, it even allows you to reduce your operating costs to the minimum necessary to deal with your product and supply lines, without having to pay for additional storage space for empty pallets.Β This can constitute tremendous savings to a company over the course of a single year and ensures better profitability.

IFCO SYSTEMS provides nationwide pallet management with reusable, durable wood stringer pallets. IFCO offers just-in-time delivery, online account management, and reliable pallet supply and retrieval year-round.

 

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