All industries are undergoing massive transformations, through automation and smart robots. Companies see these solutions as the way of the future: less cost with labor, less downtime, more productivity. As an added measure, some companies start slacking on investing in quality plastic pallets. Whatever for? They are no longer handled by employees, so there are no risks of damage.
On the contrary, our logistic specialists say. Without quality plastic pallets, the significant investment your company made in automated warehouse systems, advanced bottling lines, and other smart conveyor systems will be sabotaged.
A Small Leak Will Sink a Great Ship
You know this saying, right? It means that an apparently minor issue can have serious consequences. We are using it to illustrate what happens when you resort to cheap, unreliable pallets in your ultramodern production or storage facility.
In this article, we want to expose the underbelly of what many logistics and operation managers do not see: how the small and insignificant pallet is actually at the core of your order shipping activities and, ultimately, the element that makes or breaks your success in business.
Why Pay More for Quality Pallets? Because It Costs Even More Not to Do It!
Now we will propose a new saying: I can’t afford to buy cheap. This is the philosophy of successful businesses. You did not look for a bargain price on your automation systems. You are never considering a compromise in raw materials quality for a lower price, because your own products will be affected.
So why compromise on quality plastic pallets? Your entire supply chain depends on them. And we are going to show you how unreliable pallets can hurt your business. These are just some issues that Logistic Packaging experts noted when discussing with new clients:
1. The Small Downtimes Add Up
When a worn out and unreliable pallet breaks up or splinters on an automatic conveyor, the entire system stops. It is provided with sensors that detect these problems and overrun the program you set in order to protect the entire system from damage. You don’t want to see splinters getting into the delicate assembly of cogs and wheels that keep the conveyor line working.
Unfortunately, even if an employee notices a faulty pallet, they cannot just go to the conveyor line to pull it away, due to safety reasons. So you have a 20-minute downtime until the system is restarted. That’s not really bad – except it can happen on a daily basis if you do not use quality plastic pallets. In 365 days, that’s a total of nearly 122 hours!
2. Shipping Companies Will Charge You Extra
Shipping companies also use smart automated systems. They rely on these systems to process loads quickly, assign them to trailers and load/unload them efficiently. If their system has to take an unscheduled break due to your faulty pallets, you will see that issue on your bill.
In time, this will erode a successful partnership with a reliable transportation partner. You cannot afford that. In today’s world, your business reputation is more valuable than ever. Both B2B partners and end consumers make their choices based on several aspects, including the image a company projects. You don’t want to be perceived as an unreliable company that hampers their partners’ operations, just because you are choosing bargain prices instead of quality plastic pallets.
3. Your Clients Will Issue Penalties
Retail stores depend on a constant flow of products to stock their aisles and keep their customers happy. When they chose you as a trusted supplier, they relied on your ability to fulfill their orders on time and in the quantity they specified.
When you ship orders on wooden pallets instead of quality plastic pallets, you risk delivering damaged products to the retail store. In these conditions they may refuse the entire lot (especially if we are talking about food products) and charge you penalties for failing to fulfill your contractual obligations.
Choosing bargain prices over quality plastic pallets will not save you money. On the contrary: you will accumulate operational losses, penalties and higher transportation fees. In time, you will lose clients, vendors and your business reputation, as well. All because you tried to cut corners instead of looking for smart ways to reduce operational costs.
At Logistic Packaging, we have solutions and products that help you achieve cost optimization in an effective manner. Send us an email or schedule a Skype video call with our experts to discuss your business case!