1 Corporate presentation May 2013

Five issues when operating with pallets

K. Hartwall 2014

2 Corporate presentation May 2013

Why should you care about

operations with pallets?

Many supply chains are operated with

pallet-based material flows. Typically, pallet

operations have an impact to business

efficiency through:

1. Product damages

2. Secondary packaging materials

3. Product inventory levels

4. Handling costs

5. Health & safety

3 Corporate presentation May 2013

Issue #1 - Product damages

Pallets typically do not have any protection

on the sides, making the goods vulnerable

for any hits or other mishandling during

the distribution.

It is also typical situation that the goods

are overhanging outside the pallet

dimensions this substantially increases

the risks for product damages.

4 Corporate presentation May 2013

Issue #2 - Secondary packaging

materials

Pallets require a large amount of

secondary packaging material (stretch

foil, other materials), to keep the load

secured and stable. This is naturally

increasing the costs for the operation.

Also, when using large amounts of

secondary materials, it increases the

carbon footprint of the supply chain.

5 Corporate presentation May 2013

Issue #3 Product inventory levels

Typically, pallet-based distribution guides

the operations towards large unit loads

and delivery quantities.

Compared to more streamlined operations

with small lot sizes (often with Continuous

Replenishment approach), this often leads

to the situations where product inventory

levels will increase in many phases of the

supply chain.

6 Corporate presentation May 2013

Issue #4 Handling costs

Pallets are typically slower to handle

compared to many other goods carriers

one example being the loading and

unloading of the vehicles.

All these types of additional handling

steps put more pressure to the labor

costs. Another handling cost linked to

pallets is the needed handling

equipment: each phase of the supply

chain needs to operate pallets with a

specific device (either forklift, pallet-

jack or other equipment).

7 Corporate presentation May 2013

Issue #5 Health & safety

Pallet itself is a heavy unit, and in some

occasions there might be situations where

empty pallets are lifted manually. Maximum

weight of manually operated unit loads

nowadays has tight requirements, set by the

industry bodies, labor unions and other

parties.

There are also substantial costs occurring to

the companies from the sick leaves, injuries

and warranty payments etc., linked to Health

& Safety issues of the supply chain. Therefore,

it is important for the business to minimize the

need of manual heavy unit load handling in

the supply chain.

8 Corporate presentation May 2013

How to improve your pallet operations?

To discuss more about alternative delivery methods and

goods carrier solutions, please contact K. Hartwall.

contact-khw@k-hartwall.com

We are willing and capable to increase your Supply

Chain efficiency.

www.k-hartwall.com

9 Corporate presentation May 2013

www.k-hartwall.com