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Pallet in, pallet out is a service that helps speed up the flow of bulk freight through the supply chain. It’s a very useful strategy that businesses can use when they need to distribute large volumes of freight in a short span of time. If you want to use this service, then you should know a few important details.
Key Takeaways:
We’ll show you the inner workings of pallet in pallet out services and the benefits of working with a 3PL for your order fulfillment and distribution.
Table of Contents
Pallet in, pallet out is a strategy that can be broken down into a series of steps.
These four essential components allow businesses to enjoy efficiency in their storage and fulfillment operations.
Warehouse workers will carefully inspect the pallet after it arrives at the facility. In some cases, they might even take pictures of the cargo to document its condition.
The amount of freight loaded on the pallet is cross-checked against the shipping documents to ensure there are no discrepancies. Pallets will also be given a unique barcode or RFID tag if they don’t already have one, which allows workers to track it through the warehouse.
The RFID tag or barcode is entered into the facility’s WMS for accurate tracking.
The WMS keeps track of important information, such as:
Using WMS prevents errors that would normally occur if data on the palletized load was entered manually. It also helps workers in the facility more quickly locate the pallet when it’s time to ship the load. Ensuring that your WMS is compatible with the labeling system on the pallets is crucial to this.
Once all relevant information about the pallet has been uploadedinto the WMS, it can be moved to an area in the warehouse where it will be stored.
Storage zones inside a warehouse are differentiated based on these features:
Logistics providers often implement a variety of warehouse storage systems to maximize space and to keep products safe. Perishable items are stored in a refrigerator to prevent them from spoiling.
High turnover items are typically kept in a more accessible location within a warehouse to make them easier to retrieve when it’s time to ship. Arranging goods in this fashion lets workers move pallets without disturbing the ones that need to stay in storage.
By not breaking down the pallet, the time it takes to fully unload and store the shipment is reduced. This frees up time and workers to attend to other warehouse needs.
On average, a pallet will be stored inside a warehouse for three months. However, it’s possible for cargo to be stored between 20 days and one year, depending on how well or poorly they sell. It all comes down to the product and its seasonality.
For example, businesses in the HVAC industry will be more likely to keep their equipment in storage during the summer months, but not as much during the winter. On the other hand, businesses that sell apparel or canned food use pallets in storage throughout the year.
When your pallet is ready to be shipped, warehouse workers will access the WMS to find your load. The workers will review the pallet to ensure they have the right one and verify it’s undamaged.
Afterward, the pallet is loaded into a trailer and tracking information is provided. Since pallets remain intact from the moment they enter the warehouse, you won’t have to wait for your cargo to be re-secured to the platform prior to transport.
As a result, the shipping process is able to be extremely fast and efficient.
For this to work, logistics companies must incorporate specific components into their operations.
Where there are pallets, there’s usually a pallet jack or a forklift nearby. Equipment like this is essential when it comes to performing these services. Storage systems are also used to keep loads safe.
In modern times, WMS is essential for warehouse operations. Workers inside distribution centers wouldn’t be able to ship orders as efficiently without it.
Many small to medium-sized businesses require additional warehouse space. Third-party logistics providers (3PLs) remedy this problem by using established infrastructure to perform these services.
Even with equipment, technology, and space, pallets wouldn’t be able to make it in and out of warehouses without trained staff. The personnel in the facilities that perform the service are trained to properly handle palletized goods.
Finally, strategic pallet placement is essential for this type of service. It ensures all cargo in the warehouse is in a safe and accessible location.
Certain businesses may not be able to take advantage of these services. They might be afraid of losing out on customized orders, or feel they can’t justify not splitting up a pallet based on typical order numbers.
However, for a manufacturing or wholesale business, bulk orders are typically the standard, which is when this strategy really shines.
Why break up a pallet full of high turnover auto parts when your B2B client is likely to order it in bulk quantities anyway?
We’ll take a closer look at this unique advantage and others that come with PIPO fulfillment.
Pallet in pallet out services are a less expensive way for businesses to store and ship their products. If a company stores 14,000 individual items, they’ll have to pay a fee each time an item is scanned and picked.
A palletized load that won’t be broken down only needs to be scanned and picked once. This is considerably cheaper than repeating the same process with multiple items.
PIPO enhances the movement of pallets when they enter and exit a warehouse. Individual packages don’t have to be retrieved and repalletized after they’ve entered into a warehouse. This allows workers to operate more efficiently.
Thanks to a WMS, your pallet can be easily located inside the facility and loaded onto transport. All of these features reduce handling times. As a result, your goods can get shipped out even faster.
Warehouse storage costs are often calculated based on the amount of space pallets take up and how long they’re kept in a facility. With pallet in pallet out services, space is optimized to the highest degree.
Your cargo takes up much less space when it’s kept on a pallet, compared to being spread out among picking rows. Less space means you save on storage costs.
Product damage can be a serious problem for your business. Just consider some of the revealing data we’ve found regarding this issue.
Although these expenses don’t seem like much, they can add up if your cargo is consistently damaged or lost. Fortunately, this technique can help preserve the wellbeing of your shipments.
Your products will stay secured to the platform they’re attached to, which eliminates the possibility of warehouse workers dropping or mishandling the individual packages.
Your cargo will also be kept in areas surrounded by loads that have similar weights and sizes. This reduces the likelihood your shipment will be crushed by something larger and heavier.
Pallet in, pallet out can also support cross docking services. For those that don’t know what cross docking is, it’s a service that unloads freight from inbound vehicles and loads it onto outbound vehicles with little storage time in between.
Since your freight won’t be broken down when it arrives at each facility, cross docking can help shorten the amount of time it spends at a warehouse. As a result, your PIPO services will be enhanced.
According to Mitch Bentz, an Associate General Manager (AGM) at R+L Global Logistics, “businesses that move freight in bulk benefit the most from pallet in pallet out services.”
This can apply to the following industries:
When you’re shipping items in bulk, you don’t want your pallets to be broken down. Cargo will stay secured to the platform from when it arrives, to when it leaves the facility.
Moving cargo in bulk requires efficiency. You won’t have to worry about any wasted time or movement when using these services.
At Fulfillment and Distribution, we specialize in a variety of services that will help you store and ship inventory. Our team of trained warehouse staff have all the tools needed to ensure your goods get the treatment they deserve. Whether you’re based in the U.S. or operate out of a foreign country, we can provide the warehousing operations you require.
We have a variety of warehouse throughout the U.S. that you can utilize:
Fulfillment and Distribution stands ready to boost your business in a new direction. Fill out your quote today to use our services, or reach us at (866) 989-3082 if you have any questions.
