Pallets drive supply chain improvements

Akey component in the success of most supply chains is undoubtedly the humble wooden pallet itself.Without it the whole process would grind to an abrupt halt - the pallet underpins the movement of a wide range of products across the UK.

Furthermore, the face of the supply chain is continuing to evolve as customers' requirements drive the market further towards adding more value and improving efficiency, a fact that is particularly evident in the pallet pooling sector.

Phil Storer, European commercial director at one-way trip pallet solution exponent IPP Logipal believes pallet networks are working more closely and are much smarter in driving efficiencies through the operations.

He says: "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, and eliminating waste.

"Businesses expect flexibility and innovation and we work closely with customers to understand their business so we can develop a solution that meets their requirements but is flexible to accommodate changes going forward." Since entering the UK market in 2005, IPP Logipal has been a leading exponent of the one-way trip service that is rapidly expanding at the expense of the exchange model. This ensures a customer always receives good quality pallets that have been inspected, which they can simply load, deliver and forget.

"The system's success is reflected in the wide range of customers and market sectors that IPP Logipal now works with; from niche products to major international brands the company is delivering more and more everyday items," says Storer.

Storer believes well run, efficient pallet networks help responsible companies reduce their impact on the environment, as well as helping to reduce unit delivery costs.

He says consolidating orders and ensuring pallets carry full loads will provide significant benefits all round.

"Ensuring vehicle load optimisation can provide cost savings, improve service to customers and help reduce a product's carbon footprint." However, he warns against the false economy of using cheap pallets and the problems of the exchange system.

Storer adds: "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." Part of the Faber Halbertsma Group, IPP Logipal also offers access to a network covering Europe and a pallet banking system for euro pallets.

"Across a wide range of markets there is a drive towards a simple to administer high-quality pallet service," concludes Storer. "The pallet may seem an invisible part of the supply chain but almost all sectors rely on pallets to function - a reliable and flexible pallet partner is critical."