When to or when not to palletize? More companies are beginning to ask that question as freight costs increase. It was fairly standard to use pallets to mitigate handling costs even at the expense of freight costs, but that is beginning to be questioned now. Some companies are deciding it may not make sense. Here are some examples of why they decide not to palletize.
Companies had a choice to go with pallets that speed up loading and unloading and reduce product damage to goods or to floor load. Clamp trucks were often used to speed loading but because of the damage they created, they were referred to as the squeeze of death as they caused high damage. Pallets became the alternative. They provide a softer approach.
Pallets use up space in a truck. One company found that pallets did not work as well for them and they found a superior alternative. Frito Lay employs a cube maximization process. This process has aided them to achieve over 90+% capacity utilization and Frito transports all of their salty snacks with this method.
Just as the pallet takes up space, it also adds to the weight of the shipment, detracting from payload. Sixty pallets can weigh in excess of 3,900 lbs. Eliminating pallets enable the product weight to increase 8%. A manufacturer of heavy consumer products ships from its plants to its DC's on slip-sheets. The extra labor is calculated to be much less than the freight gain.
Multiple handling is one of the costs associated with shipping on the floor (without pallets). How much labor is involved is dependent on technology. For example, slip sheets, where the product ships on a larger piece of plastic that is grabbed by a push-pull device and pulled onto the platens of the forklift, enables product to be handled quickly with only additional labor being invested if the product needs to be palletized for shipping (a customer requirement) or put onto racks for efficient storage. Hand stacking requires lots of labor, particularly if the case size is small.
You can't forget about the cost of the pallets. It does not matter if the pallet is part of an exchange program, disposable, rented (like Chep), used or whatever, using them costs money ($2-10 per use).
Shipping on or off pallets is a cost consideration that needs to be carefully reviewed against the potential for damage.
When you consider a transportation consultant, Transportation | Warehouse Optimization has been working with some of the top companies in America, finding practical solutions that have resulted in saving millions of dollars. They take a long-term view and keep the client as top priority. Contact them at www.TransportationOptimization.com for transportation cost reductions or solutions to warehouse challenges. While visiting their website, sign up for their exclusive free Truck Loading Manual that can SAVE YOU MONEY and offer you the perfect Operator Manual for truck operators. Transportation | Warehouse Optimization - Solutions that work. Solutions that save. - 15266
Companies had a choice to go with pallets that speed up loading and unloading and reduce product damage to goods or to floor load. Clamp trucks were often used to speed loading but because of the damage they created, they were referred to as the squeeze of death as they caused high damage. Pallets became the alternative. They provide a softer approach.
Pallets use up space in a truck. One company found that pallets did not work as well for them and they found a superior alternative. Frito Lay employs a cube maximization process. This process has aided them to achieve over 90+% capacity utilization and Frito transports all of their salty snacks with this method.
Just as the pallet takes up space, it also adds to the weight of the shipment, detracting from payload. Sixty pallets can weigh in excess of 3,900 lbs. Eliminating pallets enable the product weight to increase 8%. A manufacturer of heavy consumer products ships from its plants to its DC's on slip-sheets. The extra labor is calculated to be much less than the freight gain.
Multiple handling is one of the costs associated with shipping on the floor (without pallets). How much labor is involved is dependent on technology. For example, slip sheets, where the product ships on a larger piece of plastic that is grabbed by a push-pull device and pulled onto the platens of the forklift, enables product to be handled quickly with only additional labor being invested if the product needs to be palletized for shipping (a customer requirement) or put onto racks for efficient storage. Hand stacking requires lots of labor, particularly if the case size is small.
You can't forget about the cost of the pallets. It does not matter if the pallet is part of an exchange program, disposable, rented (like Chep), used or whatever, using them costs money ($2-10 per use).
Shipping on or off pallets is a cost consideration that needs to be carefully reviewed against the potential for damage.
When you consider a transportation consultant, Transportation | Warehouse Optimization has been working with some of the top companies in America, finding practical solutions that have resulted in saving millions of dollars. They take a long-term view and keep the client as top priority. Contact them at www.TransportationOptimization.com for transportation cost reductions or solutions to warehouse challenges. While visiting their website, sign up for their exclusive free Truck Loading Manual that can SAVE YOU MONEY and offer you the perfect Operator Manual for truck operators. Transportation | Warehouse Optimization - Solutions that work. Solutions that save. - 15266
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Sign up for a exclusive free truck loading Manual that can SAVE YOU MONEY and offer you the perfect Operator Manual for Truck Operators. While there, request a call back from one of the premier transportation consultantsin the industry. Tom Moore or one of his associates will get back with you. Transportation l Warehouse Optimization - Solutions that work. Solutions that save.
