Pallet pooling, a system for managing and renting pallets, offers manufacturers the opportunity to rent pallets for transporting their products to mass distribution centres.
By adopting this approach, companies can leverage shared resources and eliminate the need for individual companies to purchase their own pallets or rely on single-use pallets.
The increasing popularity of this logistics management system within supply chains can be attributed to its numerous benefits for the distribution process.
In this article, explore five ways in which pallet pooling can enhance your distribution process.
1. Better performance of your supply chain
By choosing to implement a pallet pooling solution, you can enhance the efficiency of your supply chain and, consequently, improve your distribution processes.
1.1. Pallets suitable for automation
The pallets provided to you through the pallet pooling system are standardised to fit your production lines and automated storage and handling systems.
These standardised pallets adhere to the international standard known as ISO 6780, which ensures consistent dimensions and quality. Such pallets are manufactured using high-quality materials like wood, plastic, or metal.
In contrast, non-standard pallets do not conform to any specific size or quality standard.
They can be constructed using various materials, including lower-quality materials. As a result, they may lack durability and reliability compared to standardised pallets.
Non-standard pallets often face compatibility issues with handling equipment, making their handling more challenging and increasing the risk of damage to the transported products.
Moreover, these pallets may vary in size, being either smaller or larger than standard pallets. This discrepancy can result in inefficient utilisation of storage space, leading to suboptimal storage and distribution processes.
Therefore, the standardisation of pallets ensures the efficiency of your supply chain, enabling smooth operations and streamlined processes.
pallets adapted to your handling systems and your production lines will allow you to avoid stops
high quality pallets guarantee the safety of your goods and your operators.
And while standardisation is crucial, it alone is not sufficient. The pallets provided by the pallet pooler are of exceptional quality, ensuring precise calibration and being free from critical defects. This high-quality standard allows the pallets to seamlessly integrate with your automated systems, enabling your operators to handle them efficiently and saving valuable time in the process.
1.2. Pallets still available
During the transportation of your goods, it is not uncommon for some pallets to be lost or damaged and never make their way back to the warehouse. This issue directly affects the availability of pallets and has significant implications for the logistics of your supply chain and its financial aspects.
With pallet pooling, this challenge is mitigated as the service provider covers both incoming and outgoing flows. This ensures that you always have an adequate supply of pallets for your daily logistics operations. The pallets are collected directly from your distribution sites and then repaired by the service provider to be reintroduced into the circulation cycle. This process ensures a continuous and sustainable availability of pallets for your logistical needs.
1.3. An all-inclusive service
By outsourcing the management of your pallets to an external service provider, you always guarantee the availability of the required number of pallets, tailored to your specific preferences in terms of dimensions, location, and delivery timelines.
At LPR - La Palette Rouge, we offer our customers comprehensive support that extends well beyond the delivery of their pallets:
a service that is as closely located to your production and distribution sites as possible. With our extensive network of over 135 service centres spread across Europe, we ensure efficient coverage of the territory. This enables us to offer timely deliveries and convenient pallet retrievals at any location.
full management of pallet maintenance: once used, your pallets are recovered, sorted, and repaired by our teams to ensure a continuous level of quality service.
a dedicated portal to manage your packaging: With our innovative MyLpr solution, managing your pallet orders and tracking your invoices has never been easier. MyLpr offers an advanced feature that enables us to leverage your inventory declarations for effective inventory management. This functionality seamlessly integrates with your sites as well as your distributors' locations, ensuring accurate and streamlined inventory control throughout the supply chain.
a team available to support you: When you choose to transition from your existing pallet management system to the LPR pool, you can expect to work closely with a dedicated team that will support you every step of the way. Once the transition is complete, you will have a dedicated account manager assigned to you. This account manager will serve as your main point of contact, providing ongoing support and guidance throughout our partnership. They will be readily available to address any questions, concerns, or needs that may arise, ensuring a strong and collaborative relationship.
As you can see, by entrusting the management of your pallets to a reliable service provider, you can focus on your core business without the burden of pallet management issues.
2. Reducing the costs of your distribution processes
By opting for pallet pooling, you can circumvent the hidden costs associated with other pallet management systems.
2.1. Purchase and maintenance costs
When manufacturers have their own pallets, they become responsible for overseeing their supply which is susceptible to market price fluctuations and availability issues. Additionally, they also bear the expenses associated with repairing or disposing of damaged pallets.
However, with pallet pooling, it is possible to avoid these hidden costs by benefiting from a fixed price for a quality service. Manufacturers receive the precise number of pallets they require at the appropriate time, with pallet maintenance being taken care of by the pool manager.
2.2. Storage and empty transport costs
Once the delivery of your goods has been completed, the empty pallets are collected at the end of the chain by the service provider to be inspected, repaired if necessary and then reintroduced into the circuit.
You will no longer have:
to make empty trips to redirect your pallets.
to store unused pallets for an indeterminate amount of time in your warehouses.
to buy your own pallets.
3. More environmentally friendly distribution processes
By adopting pallet pooling, your distribution processes will align with the principles set forth by the circular economy.
3.1. Optimisation of the pallet life cycle
One of the key benefits of pallet pooling is its capacity to optimise the life cycle of the pallets within its fleet.
After being collected at the end of the supply chain, the pallets are returned to the pool where they undergo meticulous maintenance and repair, ensuring their prolonged usability.
Through this recovery and reuse process, the pallets can undergo multiple rotations and remain in use until the end of their life cycle. This approach significantly reduces the excessive consumption of raw materials, particularly wood.
By embracing pallet pooling, your supply chain can effectively reduce its environmental impact without compromising productivity.
3.2. Responsible transport packaging
LPR Red Pallets are responsibly designed transport packaging solutions.
Our pallets are constructed using 74% sustainably sourced wood, derived from forests certified by PEFC. These forests are responsibly managed, prioritising the preservation of biodiversity and the continual renewal of their tree populations.
Moreover, when LPR red pallets reach a state of irreparable damage, we ensure their proper recycling. The wood from these pallets is repurposed into heating pellets, contributing to the production of heat and/or electricity.
4. Easy tracking and management of your pallets
Pallet pooling companies offer distributors the benefit of tracking systems to monitor the movement of their goods and pallets effectively.
These tracking systems, when combined with online solutions for data collection and analysis, enable accurate monitoring of pallets' locations and movements across the entire supply chain.
For instance, utilising advanced technology like Shippeo, a solution integrated into our carriers' trucks, enables real-time tracking of your pallets' movement, providing valuable visibility and control.
In the future, blockchain technology is also something to consider:
better security and transparency of your data
Each pallet movement is meticulously recorded on the blockchain as a transaction, ensuring transparency and immutability. Once a transaction is recorded, it becomes permanent and cannot be altered or removed.
Furthermore, a consensus validation system is in place, enabling all parties involved to participate in verifying and validating these transactions. This system ensures trust and accountability throughout the supply chain, as all stakeholders can independently confirm the accuracy and integrity of the recorded pallet movements.
automation of your processes
Blockchain can be integrated with supply chain management systems, allowing certain operations related to pallet movements to be automated.
For example, smart contracts can be used to automatically trigger actions such as generating documents needed to deliver goods or authorising delivery when certain predefined conditions are met.
5. Outsource your pallet management to a trusted partner
By leveraging pallet pooling services, you can free up valuable time to focus on your core business activities. This allows you to allocate your human resources to other essential tasks, relieving them of administrative burdens.
At LPR, our MyLPR solution streamlines your supply chain management with just a single click:
Easily access and view your invoices through a user-friendly web portal that provides a clear overview of all your billing details.
Easily order your pallets by entering the format, desired quantity, date, and place of delivery.
A well-functioning distribution process is vital for ensuring the profitability of a supply chain and the satisfaction of its customers. Companies that excel in their distribution processes can deliver exceptional products and services while maintaining reasonable operating costs.
Pallet pooling presents an opportunity to address the requirements and challenges of your supply chain, enhancing its performance and minimising its environmental footprint.
Are you interested in joining a pallet pool?
Our teams are available to assist you and ensure a smooth transition towards making the change. Contact us today!