2. Overview
Types of Pallets
– CHEP
– White Wood New
– White Wood B Grade
– Heat Treated
– IGPS
– CHEP
– Damaged pallets
– Used pallets from incoming packaging supplies
3. Pallet Usage July 2013 - June 2014
IGPS
– 2,185
CHEP
– 49,582
White Wood New
– 67,506
White Wood B Grade
– 11,240
Heat Treated
– 396
4. Pallet Cost July 2013 – June 2014
UPDATED
Pallet Co (White wood new and heat treated)
– $773,870.35
iGPS (iGPS pallets)
– $22,486.10
API (B grade pallets)
– $126,302
CHEP (CHEP pallets)
– $266,468.40
5. Assessment of Pallets Needed
Physical counts taken each morning
Once threshold is met for minimum inventory level, a new
purchase order is issued
– White Wood New – 200 (5 stacks)
– White Wood B Grade – 200 (5 stacks)
– iGPS – 240 (3 stacks)
– CHEP – 240 (3 stacks)
– Heat Treated – 20 (checked when sales order received)
6. Lead Times Required
IGPS – 4 to 5 days
CHEP – 4 to 5 days
– Next day delivery possible if needed
White Wood New – day of order
B Grade – day of order
Heat Treated – day of order
7. Procedure for Issuing Purchase Order
Contact supplier and notify of needs
Enter purchase order in MAS200
Email purchase order to supplier
Receive email confirmation of order from
supplier
CHEP and iGPS orders are submitted on
website
8. Receiving Pallets
IGPS – unloaded and stacked in factory by
shippers
CHEP – unloaded and stacked in factory by
shippers
– Inventory is logged daily in CHEP website
White Wood
– Drop trailer program
9. Pallet Location System
Tracks finished goods
Monitors location of pallets from production
of tote to location in warehouse to shipment
10. Damaged Pallets
Taken when new load is delivered
Average 2 times a week, can be 3
Anywhere from 50 – 200 pallets taken each
time
Not logged in inventory
11. Inventory Control Deficiencies
Damaged pallets are not counted / removed
from inventory
Incoming supplier pallets are used to
augment pallet inventory
– They are not added to pallet inventory in MAS
– Provides inaccurate representation of inventoried
pallet usage
12. Recommendations
Set minimum inventory threshold
notifications in MAS
Manually relieve damaged pallets from
inventory in MAS
Implement program to utilize pallets received
from suppliers