Understanding the Benefits of Outsourced Pallet Management

Preparing Perfect Pallets: A Complete Guide to Pallet Shipping -  Omnichannel Logistics - Need it Now Delivers

If your business deals with the shipping of goods, no matter what the quantity, chances are you can benefit from outsourced pallet management. Many companies, when they think of outsourcing, think of turning their entire transportation and warehousing operations to a third party. Sure it will reduce costs but it can also reduce the control you have. Outsourcing the management of the pallets though can also produce cost savings, without losing control.

Basically, by outsourcing your pallet administration, you can save on capital expenses tied into logistic delivery and concentrate on your core business model instead of chasing down lost pallets after a delivery of goods. The outsourcing company can concentrate on the tracking of pallets on your behalf. The best cost savings would be in renting pallets and paying a user fee for just your shipping trips rather than purchasing them outright. This way, you spread the cost amongst other businesses that are doing the same thing with their outsourced pallet company.

Other Benefits

With an outsourced management company, your company is typically assigned an account manager whose job is to follow your pallets from your shipping department to the customer and skid shipping back again. Instead of tying up one or more of your own employees, the outsourced company does the work for you. They will even come to your business to inspect your whole process from creation to goods that are ready to be shipped.

You will discover there are fewer lost equipment claims once you hire a pallet management outsourcing company. This means more money on your balance sheet. Also, regular reports are supplied to your business which breaks down exactly where your pallets are going and how they are re-circulated for additional use. Remember, if you decide to rent pallets instead of purchasing them, this spreads the cost of them to multiple entities and reduces your risk too.

Once your company achieves stability in regards to tracking the pallets, you will be able to develop “real world” figures for your shipping needs during budget analysis and forecasting times. There is no guessing game involved when it comes to supply chain management, particularly pallets.

Typically all paperwork and communications that deal with the pallets are managed through the outsourcing company you hire, not your own. This reduces confusion and the work load on your business.

You can eliminate many of the worries about losing money on lost pallets once your products have shipped. With outsourced pallet management, you basically just get an invoice for their services while everything runs smoothly.

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