In the retail industry, efficient supply chain management is crucial for maintaining product quality, reducing costs, and ensuring customer satisfaction.
One tool that has seen relatively zero innovation in most supply chains is the pallet. Traditional wooden pallets, while still widely used by retail supply chains, come with significant drawbacks, including high replacement costs, potential product damage, and a lack of traceability.
A leading multinational retail chain we have been partnering with, known for its wide range of food, clothing, and household products, addressed these issues by rolling out our trackable and reusable plastic pallets across their supply chain.
The retailer’s goal: To revolutionise their supply chain by replacing traditional wooden pick-to-store pallets with Digipal’s state-of-the-art nestable pallets featuring advanced asset management capabilities.
The results: By embracing Digipal’s innovative solution, this retailer has not only solved the challenges posed by traditional wooden pallets but has also taken a significant step towards creating a more efficient, sustainable, and intelligent supply chain.
The Challenge
Our customer faced several issues with their existing wooden pallet system:
- High replacement costs due to frequent damage
- Lack of traceability leading to lost assets
- Inefficient space utilisation in storage and transit
- Potential for product damage from splinters and protruding nails
- Adhering to sustainability targets due to inefficient operations
These challenges not only increased operational costs but also impacted the overall efficiency of their supply chain, potentially affecting product quality and customer satisfaction.
The Solution
Digipal proposed a comprehensive solution comprising:
- Durable plastic pallets: Designed to withstand the rigors of daily use, our reusable plastic pallets are more resilient than their wooden counterparts. Compared to a breakage rate of up to 25% for wooden pallets, our plastic pallets boast a breakage rate of under 1%.
- Nestable design: When empty, Digipal Plastic Pallets can be nested, significantly reducing storage space requirements and transportation costs.
- IoT-enabled asset tracking: Each pallet is equipped with IoT sensors, providing real-time location and condition data.
- DigiPortal software: This cloud-based dashboard aggregates and analyses data from the IoT-enabled pallets, offering unprecedented visibility into the supply chain.
How It Works
We replaced our customer’s wooden pick-to-store pallets with Digipal’s smart, nestable plastic pallets. Each of our pallets is embedded with IoT sensors that strategically transmit data at specified checkpoints regarding the asset’s location and condition.
The DigiPortal software processes this data, providing the retailer with:
- Real-time asset tracking.
- Inventory optimisation suggestions.
- Easy to read reports ranking stores by compliance.
- Automated notifications to each store regarding stock holding.
- KPIs such as Dwell Time, stock hording and volume.
This system allows the retailer to monitor their assets throughout the supply chain, from distribution centres to individual stores, enabling proactive management and rapid response to any issues.
The Outcome
After two years of partnership with Digipal so far, the retailer has seen significant improvements in their supply chain operations:
- 100% asset traceability: All 20,000 pallets used annually are now fully trackable, eliminating uncertainty about asset locations.
- Dramatic reduction in losses: Only 20 pallets were lost over the two-year period, a significant improvement from their previous wooden pallet system.
- Enhanced durability: Just 52 pallets were damaged in two years, substantially reducing replacement costs and waste.
The Benefits
The implementation of Digipal’s smart reusable plastic pallet solution has provided our customer with numerous benefits:
Enhanced supply chain visibility: Real-time tracking allows for better inventory management and faster issue resolution.
Improved operational efficiency: The durability and nestability of our plastic pallets have streamlined logistics operations.
Cost reduction: Fewer lost and damaged pallets, combined with more efficient storage and transport, have led to significant cost savings.
Sustainability: The shift to reusable plastic pallets has reduced the retailer’s environmental footprint.
Data-driven decision making: The insights provided by the DigiPortal software enable more informed strategic planning and operational decisions.
Interested in revolutionising your supply chain in the same way?
Get in touch about partnering with us today to discuss how we can help you evolve towards more efficient, sustainable and cost-effective operations.