One way tripping on the up
March 1st 2010

Over the last five years the paradigm of pallet pooling has shifted says Phil Storer,UK & Ireland director and European vice president at IPP Logipal

Pallet pooling has shifted towards the one-way trip solution at the expense of the exchange model. The driving force behind the continuing trend is customers' requirements, which are moving the market further towards adding more value and improving efficiency. A fact that is particularly evident in the current economy.

There is also a focus on collaboration, aimed at reducing empty vehicle running and costs together with CO2 emissions as businesses address growing concerns over the environmental impact of their supply chains.

The pallet networks are working more closely than ever before and are much smarter in driving efficiencies through the operations.

As businesses continue to focus on improvements to the distribution process, collaboration and flexibility to create partnerships that encompass sharing transport, depot implants and integration with retailers are initiatives coming to the fore.

Ideas that are aimed at reducing a product's carbon footprint, minimising transportation mileage, eliminating waste and driving out cost.

Businesses expect flexibility and innovation and we work closely with our customers to understand their business so that we can develop a solution that meets their requirements but is flexible to accommodate changes going forward.

Further challenges for industry lie ahead but well run, efficient networks can help responsible companies reduce their impact on the environment, as well as helping to reduce unit delivery costs.

Consolidating orders and ensuring pallets carry full loads will provide significant benefits all round. One of the keys is to make certain a vehicle's load is optimised wherever possible. This can provide cost savings, improve service to customers and help reduce a product's carbon footprint.

I would warn against the false economy of using cheap pallets and the problems of the exchange system.

The use of quality pallets is a priority as investment in automation by manufacturers, suppliers and major retailers continues to grow in the drive to provide operational efficiency.

If pallets are rejected due to quality control issues, retailers are increasingly passing on the costs to suppliers for the disruption this can cause. There is also a potential knock on effect on product availability, sales volumes and possible delisting.

Across a wide range of markets there is a drive towards a simple to administer high-quality pallet service. The pallet may seem an invisible part of the supply chain but almost all sectors rely on pallets to function so a reliable partner is critical. IPP Logipal is part of the Faber Halbertsma Group.

More articles from FHG IPP UK & Ireland: