Pallet Optimization Cost Savings Opportunity
We know that you want to find efficiencies in your supply chain. To help you, we run a logistics efficiency comparison, looking at the current state of your case and unit load optimization versus the future state.
The positive impacts of optimizing unit loads? Financial savings and Sustainability improvements.
To analyze financial impacts, ALOE breaks down the analysis by looking at several components of total savings.
Warehouse Handling
We know that handling fewer physical pallets—from the warehouse to storage positions or in retrieval to trailer loading—reduces the costs and improves sustainability of your warehouse performance. To accurately capture a savings metric, we input into our model the standard warehouse handling costs or your specific costs.
Storage Cost Reduction
A second component we evaluate for optimization is better space utilization throughout the warehouse through increased product density. The focus is to best utilize pallet positions in the rack or on the floor. Both current openings, as well as alternative opening sizes, are modeled to explore savings.
Multi-stack configurations
A more dense pallet will require fewer pallet positions to store a similar number of cases. Savings are multiplied when double, triple, or quad stacking pallets. But, ensuring your unit load can sustain a multi-stack configuration requires engineering and testing evaluations. We can offer a unique insight into the possible modifications necessary because we have extensive experience in structural loading of pallet configurations. With these modifications, you can achieve additional cost and sustainability improvements.
Learn more about our package testing
Physical Pallet Costs
As unit load density increases, and fewer pallet configurations are needed to transport a similar number of cases, a reduction in physical pallets reduces the usage of pallets. ALOE calculates this reduction based on volume usage.
Transportation Costs
Increasing the case utilization of a truck reduces the total number of trucks required. And each truck removed adds additional savings and improves sustainability. The value of this savings component quickly adds up—often to staggering savings. This is especially true on long lanes. Our savings model breaks down these savings by SKU and by lane to provide the detailed visibility for proper decision making.
ALOE Group can also run an impact assessment on your current assets based on each proposed configuration. We can help you understand and account for the impacts to legacy equipment, whether it’s racking, line equipment, post-production product conditioning and the like.