06 Jun Case Study – How we saved $550K with accurate Pallet Management
With an expert looking after the Pallet Management of a business – the savings far outweigh the cost!
A Pallet Management specialist can look at the Hire Equipment accounts and identify any ‘red flags’
If you have pallets as part of the business processes you need to read this.If your pallet management processes aren’t on point, they could be having an adverse effect on your balance sheet.
There are several questions a business can ask the Pallet controller to make sure their internal process is saving them money – and not costing the business. Unfortunately, if a business doesn’t know the right questions to ask, they won’t get the correct answers.
- Are the accounts reconciled?
- Are the Manual Dockets processed? and How?
- Last Stocktake of equipment? Did the quantity match the Invoice?
A Pallet Management Specialist can identify gaps in the processes, take full control of the pallet situation and ensure the internal processes are being done correctly.
The first step to assist our client was to conduct a thorough investigation of the account – followed by reconciliation, to give full exposure of the account. This provided us with the information to give a report on the exact position of the account and budget forecast.
A Personal Account Manager was assigned immediately to take full control of the account and stop the financial loss from continuing.
After conducting a thorough stocktake, it was established equipment was being hired that was physically missing from the site:-
- 2,500 wood pallets
- 300 FB4 bins
- 50 FB2 bins
- 12,000 Black Crates
- 1,200 Industrial Standard Crates
After collection of all the paperwork and documentation for the previous years, performing a reconciliation dating back 2 years, identifying rejections on the account, we developed a cost analysis to report to our client.
Our client was looking at a considerable payout figure for missing equipment. By engaging ProPallet – Professional Pallet Management to locate the equipment and manage the account – the payout figure was reduced from $320K down to $67K immediately. We will improve our client’s balance sheet by $550K this financial year – through a combination of saving equipment hire and the payout from the equipment initially thought ‘lost’. The savings continue with a prediction of more than $750K with increased savings in future years.
If your business relies on pallets as part of the business process, and the business is looking for an improved balance sheet – Contact ProPallet – You have nothing to lose
In fact, you could have much to gain.