This case study demonstrates the importance of performing upgrades at all levels in your company’s operations: when you implement advanced automation and robotics, you must ensure that the packaging materials are compatible with these new facilities. In this instance, closed deck plastic pallets have solved a major bottleneck in a company’s daily operations.
The Client’s Story
Starting out over half a century ago as a local distributor for various workshops, our client has grown into one of the largest distributors of household electronics on the Central and Eastern European market. They have a large central warehouse that stocks the merchandize. It is connected with local distribution hubs through a strategic partnership with a transportation company operating a large fleet of trucks.
The logistic manager who contacted the Logistic Packaging team described the daily operations: merchandize arrives from producers to the central warehouse and is loaded onto pallets. The pallets are arranged on pallet racks that are 15 levels high and span the entire surface of the large warehouse. The inventory is kept using advanced software solutions, which offer real time information to managers and order picking employees.
Whenever an order comes in, order pickers retrieve a pallet using a pallet truck, remove the necessary items, update the inventory and replace the pallet back on the rack.
The Problem Presented to Our Specialists
The client explained that automation and robotics allowed them to expand their business and open distribution hubs in new countries. Their material handling, inventory and order picking solutions are industry standards.
However, they were still using wooden pallets to store the merchandize. And this was the precise source of their problem. These pallets would splinter or completely break in the middle of order picking operations.
This meant that:
- Workers had to find a new pallet and replace the products on it
- Some products would be damaged and had to be written off
- Order picking was delayed, causing bottlenecks in the warehousing operations.
Logistic Packaging Experts Recommend Closed Deck Plastic Pallets
After due consideration of the matter, our team of packaging specialists found a solution: heavy duty closed deck plastic pallets with skids. Replacing the wooden pallets with professional returnable packaging materials was the obvious necessary action.
However, our specialists wanted to make sure that the client would not only solve a problem, but also optimize their operations. Thus, we recommended a professional packaging solution that would achieve both goals.
The Benefits of Closed Decks Plastic Pallets
When we presented our solution to the client, we underlined the following benefits:
- The closed deck plastic pallets have a high loading capacity of up to 4,800 kg
- The skids are ideal for handling with forklift and placing on conveyor belts
- The pallets are made of high quality materials which withstand intense use
- Long life span and low total cost of ownership.
We also pointed out that the standard footprint of the closed deck plastic pallets is the ideal fit for their racking system and even optimizes the usage of storage space in the warehouse.
The Client’s Feedback
Several months after switching from wooden pallets to closed deck plastic pallets, the client reported the first positive results. They noted a significant decrease in the reported incidents in the warehouse. The order picking team found the new pallets very sturdy and safe to handle with pallet trucks.
With fewer damaged products and an optimization of warehouse space, the client’s sales increased and they are planning further expansion to new territories in the CEE region.
The specialists at Logistic Packaging are ready to evaluate your packaging needs and present effective solutions that help you optimize your operations and reduce costs. Send us an email or schedule a Skype video call to discuss your project with us!