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Freight and Logistics Supply Chain Can Save Money on Basic Warehousing Supplies

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Everyone in the supply chain is trying to save both money and reduce their environmental impact and never more so than right now. One of the first places freight and logistics groups look at to cut costs has traditionally been in warehousing and the fact that IKEA has reportedly saved tens of millions of euros since switching to a more environmentally acceptable pallet solution will be enough to make any business manager sit up and take notice.

 Two years ago the Scandinavian home supplies group opted to switch from wooden to compressed card pallets. The card was sourced from over 1,000 of the company’s suppliers, after manufacture the pallets and associated packing are pulped and remanufactured, and IKEA estimated it could save €140 million annually in transport costs with the pallets coming in at just 10% of the weight of their wooden counterparts.

Almost forty years ago the Finnish Eltete Group started life producing edging boards to protect and support products, items such as those long right angled strips which run down the corners of a palletised load. Now the company has developed its own factories in fifteen countries, with exports to another forty five, and is manufacturing pallets and boxes from paper board as a substitute for traditional timber and plywood solutions. The package as a whole consists of honeycomb boards, stabilising edge boards with a couple of different profiles, glue and paper cores to stabilise the feet.

These days Eltete don’t just ship finished product however, the specialised machinery which the company uses is now sold on to bigger users to enable them to manufacture their own bespoke products. At the beginning of June Eltete shipped an automatic production line for producing paper pallets to a Japanese paper roll core manufacturer that is broadening its line of business into logistics...Read more on handyshippingguide

Last modified on Thursday, 08 August 2013 09:05

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