A long-time customer, looking to add more services to their pallet consultation program, asked us how we could reduce costs and enhance their profitability and sustainability initiative. As part of our Total Pallet Management Program, we conducted an extensive audit to determine where we could add the most value — helping them achieve their performance improvement goals and meeting their most pressing needs.
The audit was an extensive, deep dive and uncovered additional tactics which, if implemented, would help them achieve measurable results. By providing on-site labor and sorting and repairing pallets in their locations, they were able to reduce labor costs and focus more on their operations. We also looked at pallet rebates, pickups, pallet purchases and pooler pallet management. We made recommendations, and after implementation we were able to quantify impressive results. The partnership was enhanced with open communication, transparency and proof of how we could add value to their processes. We developed an action plan with tangible recommendations for quick wins and long-term supply chain improvement procedures.
The results were quantifiable. We more than doubled the average rebate per pick up from $237 to over $500. We tracked this against competitors and quantified that this was an increased outcome for our customers beyond what most distributors can achieve. The depth of our network delivered proof of concept and this translated into rebate profitability for our customer.