Yes the common garden-variety pallets are made of wood, hardwood for CHEP pallets and lighter pine wood for Loscam pallets, but the fact is, lose these hire pallets and you’re up for at least AUD$30 per pallet in Compensation costs to the 2 major hire companies, CHEP & Loscam.
Effective pallet control, including the use of Standard Operating Procedures and fully trained staff, is crucial in maintaining an accurate hire account and minimizing pallet losses and hire costs. And this is no different in application to the plethora of other equipment types on hire, such as plastic crates, produce bins and universal cubic containers.
Even some basic steps can be undertaken to help prevent the loss of hire pallets & keep a lid on costs: physically count each and every pallet that leaves and arrives on site, ensure pallet documentation accompanies every outgoing & incoming delivery, keep a daily record of pallet types (CHEP or Loscam) and quantities that are dispatched and received each day, and conduct regular pallet stock-takes.
It is amazing how many business, both small and large, neglect to carry out such basic steps in pallet control. Some claim to not have the time, some say they lack the necessary resources, whilst others simply admit to not having appropriately trained/experienced staff.
In fact it is surprising how many companies do not recognize their pallet hire accounts as legitimate/serious costs to their business – until of course, the inevitable often happens and they receive a Compensation Invoice for a significant percentage of lost or uncounted pallets, identified via an audit.
Many businesses, particular the larger ones, employ a full-time Pallet Controller to manage all aspects of their hire account(s). Even with this luxury in place, it is vital for the person in this role to receive full support and understanding from staff around them and more so from management above.
Everyone from the forklift drivers and warehouse staff right up to the senior managers need to recognize and understand that to allow just one pallet out the door without being accounted for is like taking $30 from your wallet/purse and throwing it in the street… who willingly does that?
Thankfully and increasingly these days, there is professional help out there for those businesses struggling to come to terms with and/or implement effective pallet control. 3rd Party Pallet Consultants, Pallet Auditing Services, Pallet Control Services, Pallet Management Services and other companies providing extensive experience are available and ready to help.
Employing their expert services is a very real alternative to sustaining month on month hire costs for pallets that you do not physically have.