Reverse Logistics vs. Pallet Repair, Recovery, and Return?
- Pallet repair, recovery, and return is only one part of reverse logistics.
- Reverse logistics applies to anything that has value in your supply chain (not just pallets) and may or may not include asset repairs. Anything that goes forward into delivery can be reversed, so that we can apply reverse logistics to any of your reusable packaging materials. If the packaging material is no longer usable at the time of pick-up, your reverse logistics partner can dispose of the materials for you.
- For example, if your company uses OSB board in the transfer of its products, we can help return the OSB board back to you after delivery. By wrapping and returning the reusable packaging materials to be used again, your company can save time and money on supply chain logistics.
- Pallet Repair, Recovery, and Return, on the other hand, is a subset of reverse logistics, applies specifically to wooden pallets, and can save you more than 25 percent per pallet.
- When implementing a pallet recovery system, we’ll create a closed-loop system that allows you to cut costs and extend the life of your pallets through consistent pallet repair.
- With our pallet recovery system, you’re able to reuse the same pallet three to four times per year for up to an average of eight years. By reusing pallets, some of our loyal customers have reduced pallets costs from $75 per pallet, with the cost to reuse this same pallet equaling $25 per pallet, per trip. This can be sustained over 4 shipments per year with an asset life of 8 years.
What is your recovery system’s cycle time?
- Cycle times vary by program, but typically the cycle time lasts approximately three to four months, which means repaired pallets can be reused about three to four times per year.
What type of pallet tracking system does FALM use?
- We use the GB04 tracking system, which enables customized reporting on pallet recovery activity for recyclers, retail stores and FALM. The system allows us to see how many pallets were retrieved, how many were distributed, and how many were disposed of during the pallet recovery process.
- Our customers find the GB04 tracking system especially helpful because it allows them to track how many of their pallets were distributed, which helps them keep track of customers’ rebate credits.
- Pallet rebate credits are essential to a recovery program in that the shippers’ customers have to be incentivized to collect and return to FALM in order to receive a pallet rebate credit.