In support of European Supply Chain Day (21 April) – which Kevin Richardson, Chief Executive of the CILT, reports to be the biggest and best event yet – Goplasticpallets.com created an infographic to educate logistics professionals about the significant cost savings they can achieve by switching from using one-trip packaging to returnable transit packaging.
Jim Hardisty, Managing Director of Goplasticpallets.com, said: "We decided to support European Supply Chain Day this year to help raise awareness of the logistics and supply chain profession, which in my opinion deserves a lot more recognition.
"Our infographic highlights two typical scenarios whereby switching from wooden pallets and one-trip cardboard boxes to using returnable plastic pallets and plastic boxes, logistics professionals will not only have a more durable, long-life product they can use over and over again, but achieve a return on their investment within less than 12 months.
"Over a five year period, these cost savings can be as much as £189,000 when using plastic pallets instead of wooden ones and £316,920 when using plastic boxes instead of one-trip cardboard ones. Considering plastic pallets and boxes can be used up to 10 times longer and sometimes more, these savings could more than double."
Goplasticpallets.com has already helped a number of businesses improve supply chain efficiencies by switching from one-trip packaging to returnable transit packaging.
Just one example is a leading UK retailer who was using wooden pallets to transport goods from being picked in the warehouse through to delivery. These pallets were used up to five times before being recycled, but required frequent repairs by two personnel to keep them serviceable. During the initial consultation with the client and their transport company, Goplasticpallets.com identified that they were using only 45 percent vehicle space and that the wooden pallets were costing them over £1m per year.
Goplasticpallets.com recommended replacing their wooden pallets with plastic pool pallets to give them the flexibility of packing different sized orders and increase the number of orders per trailer from an average 28 to 52. By implementing this change Goplasticpallets.com saved the company £1m annually in pallet costs, significantly reduced labour costs for pallet repairs and improved vehicle fill as well as their order picking process.
Over five years, Goplasticpallets.com calculated conservatively that the savings would be in excess of £8m, which included the cost of replacing 10 percent lost pallets and 10 percent damaged pallets per annum.
This example demonstrates just some of the benefits of switching from one-trip packaging to returnable transit packaging. Other advantages include: the use of standardising packaging, less damaged stock, lower waste disposal costs, streamlining of labour and operations, reduced CO2 footprint, and safer handling.
Last year, over 38,500 participants visited more than 450 events in at least 20 different countries on European Supply Chain Day, and the CILT anticipates surpassing these numbers this year.