Recycled Pallets Offer Millions in Cost-Savings
This case study highlights Kamps’ expertise, resources, and innovative spirit’s impact on even the most complex supply chains to bring about cost savings, time savings, and increased transparency. This case study highlights Kamps’ comprehensive approach to pallet solutions. The analysis and problem-solving process included in this case study is an example of our experts’ approach to every pallet program – large or small. It is also important to note that every program and supply chain is unique, and the benefits and solutions in this process may not apply to every scenario. This is exactly why Kamps’ expertise and know-how are invaluable regarding pallet program improvement and analysis, regardless of whether you’re in the automotive industry.
Also Read: Pallet Durability Research
The Situation:
Two leading players in the automotive industry are faced with similar challenges in their respective pallet management programs. Both companies have decentralized pallet purchasing strategies, allowing locations to procure pallets from various sources independently. This led to a lack of clear visibility on the final destination of these pallets once they were used and a general lack of understanding of the pallet program. This resulted in substantial annual expenditures as they ordered pallets from various suppliers and often ordered new pallets to support their shipping operations. The lack of a streamlined process and sustainable practices posed financial and operational hurdles for both automotive giants.
Opportunity for Improvement:
After an analysis, the Kamps team identified several key areas that required attention. These included reducing pallet purchasing costs, enhancing visibility into pallet movements, promoting sustainability through recycled materials, and establishing a comprehensive framework for pallet management across their respective supply chains.
Our Response:
To address these challenges, Kamps offered a holistic solution encompassing pallet procurement, asset recovery, remanufacturing, and recycling. By partnering with Kamps, both companies aimed to streamline their pallet management processes, lower costs, and achieve greater transparency throughout the pallet lifecycle through a singular closed-loop pallet program. One of the automotive companies had an Order Portal created by Kamps, allowing them to purchase pallets from any of their locations and receive the order within 24-48 hours. The second automotive company gave Kamps complete access to their facilities, creating the opportunity to pinpoint all of their pallet waste. This created a new stream of pallet components that could be used for their recycled pallet purchases, significantly decreasing their overall cost.
Kamps’ Unique Advantage:
Kamps brought several unique advantages to the table, setting them apart from other pallet suppliers.
1. The ability to quickly scale production and deliver high-quality pallets aligned with the automotive companies demanding supply chain requirements.
2. The expertise in pallet asset recovery allowed them to retrieve and reintroduce pallets from various sources, reducing the need for new pallet purchases.
3. Kamps’ advanced technology and industry-leading equipment enabled them to incorporate recycled materials into pallet production, ensuring sustainability while keeping costs low.
4. The proprietary comprehensive portal provided total pallet management transparency, while their Green Scorecard facilitated sustainability reporting, enhancing corporate stewardship for both parties.
Case Study Results:
Partnering with Kamps on a custom closed-loop program enabled the two automotive companies to decrease shipping costs and significantly increase nationwide visibility between facility locations and their respective program. The streamlined ordering process also freed up vast amounts of time for their staff, allowing the employees to shift focus solely on higher priority tasks.
