Pallet Tracking System – Challenges in the Supply Chain
Pallet Theft, Loss & Damage
Many different occurrences in the supply chain can lead to the loss of reusable pallets. These include accidental misdirection to the wrong supplier or customer, accidental or deliberate failure to return the pallets by the receiver, stock-holding causing a bottleneck in the supply chain, theft by individuals and organised crime gangs, and accidental disposal. Globalisation and multiple modes of transport across land sea and air is also a major contributor to pallet loss, as is a failure to use optimised routes or rotate routes to ensure there is regularly space on the vehicle at all empty pallet pickup points.
The cost of a new pallet can be as high as £8-10, but it only costs a fraction of this to repair them and reuse them in the supply chain.
Additional Costs Incurred
In addition to the loss and the repurchase costs of the pallets themselves, other losses include the time and labour spent looking for the pallets and delay in other shipments being sent out due to a lack of containers to carry them in transit.
The True Cost of Pallet Loss
All over the world, Pallets made from wood, high density polyethylene and polypropylene, and their valuable cargo, are being lost and stolen at an alarming rate. In the USA the loss of these reusable assets is costing retailers and consumer packaged goods businesses around $500 million per annum. 30% of all pallets in the US bakery industry go missing each year and in the dairy industry around 25million pallets are lost, predominantly to theft. Of course, the cost is passed onto the consumer and goods prices soar to cover the losses. In the UK a recent and more quirky issue that has come to light is the trend for people to take pallets from supermarkets and local councils and use them to fuel their village bonfires on Guy Fawkes night. This has become so prevalent across the UK, that the knock-on effects of this one night has been costing the UK economy millions in recent years. Failure to reuse pallets is not just an economic issue it also has a negative impact on the environment.
NFC Group creates solutions harnessing RFID, IoT and GPS technologies so you can easily track, monitor and recover your pallets for reuse, saving money, boosting productivity and reducing your carbon footprint.