Tegut’s Euro Pallet Management Benefits from PAKi and Pooling Partners

German grocery retailer cooperates with Pooling Partners to enhance pallet management and to address seasonal variations. Voucher system enables inbound shippers options for later pallet retrieval or transfer, eliminating complexities and logistical inefficiencies related to pallet exchange. 

Tegut enjoyed revenues of just under one billion Euros (996 million) in 2016, operating around 280 outlets, including supermarkets, local suppliers and convenience stores.  The German retailer offers about 25,000 different items, with an emphasis on freshness, regional sourcing and sustainability. Such a focus places considerable strain on logistics execution.  Since March 2017, Tegut has been relying on PAKi Services of Pooling Partners to better manage its pallets.  

Claus Goldbach
Claus Goldbach, head of logistics at Tegut, relies on efficiency in pallet management.

Tegut has been using euro pallets for many years. In the past, the company always exchanged the pallets directly with the individual transport agent. “In the past few years, the practice of one by one pallet exchange had become increasingly characterised by discussions on the loading platform,” reports Claus Goldbach, Head of Logistics at Tegut. Sometimes the drivers wanted to sort the pallets themselves in the incoming goods or resource areas, which is not possible for regulatory reasons.

With the goal of making pallet management easier and more professional in mind, Tegut compared a variety of solutions over the course of several months. “There are big differences between competitors in terms of service and quality,” says Goldbach. “Therefore, we looked thoroughly into the subject and the routines followed by existing customers and included our colleagues from the purchasing department in the decision-making process. From the very beginning, Pooling Partners was a trustworthy partner and won us over with its efficient model,” continues Goldbach. “Their good reputation also played an important role in our decision process.”

Quick Acceptance of the PAKi pallet voucher

After the first negotiations, within just a few months, the two partners converted a large part of the pallet management of Tegut to the PAKi voucher system. Since then, upon delivery, forwarding agents can choose whether they would like to receive empty pallets or a PAKi pallet voucher from Pooling Partners with a unique voucher number which can also be transferred to third parties. When redeeming the voucher at Pooling Partners, the pallets are credited to the voucher holder and can be bundled immediately and either picked up in the requested quality at one of 10,000 pooling locations in Europe or delivered to the desired recipient.

“The services offered by PAKi have proved to be an advantageous solution for our suppliers and for us alike,” explains Moritz Ziegler, Team Manager of dry foods storage at the Tegut branch in Fulda. “We were quite surprised with the high level of acceptance we quickly experienced in the dry foods segment. The volume we expected at the beginning has already more than doubled.”

Tegut has benefited from the move away from pallet exchange at the time of receiving. Employees who used to have to fetch pallets from the adjacent resource area themselves now have more time for other duties. In addition, the external drivers get their pallet voucher directly in the storage office and no longer need to enter the internal area of tegut.

Dealing with Seasonal Volumes

The benefits of the PAKi voucher are visible all year long. When large quantities of goods are delivered and stored during seasonal peaks, almost no empty pallets are available. However, the situation changes quickly as the goods are sold. “After the various sales campaigns, a great deal of space is needed for the empty pallets,” continues Moritz Ziegler. “This is when we give Pooling Partners a call. They pick the empty pallets up and see to their return and availability for pickup by suppliers or forwarding agents. In addition, we maintain an overview of our pallet balance at all times. Quite apart from the fact that operation of the system via the online portal is intuitive and therefore really easy.”

Moreover, Tegut appreciates the eco-friendliness of the PAKi services. The intelligent pallet management makes exchange procedures easier and guarantees that pallets are used more frequently. In addition, the network of over 10,000 pooling stations prevents the unnecessary transport of empty pallets. This saves time, fuel and money while significantly reducing CO2 emissions.

“Before implementation of the new system we informed all suppliers about the new possibility of choosing whether to exchange pallets or go for the PAKi solution,” summarises Goldbach. “We subsequently introduced the PAKi solution of Pooling Partners for pallet management at incoming goods and are very satisfied with the easy handling of the PAKi pallet vouchers.” Tegit looks forward to future collaboration with Pooling Partners.

High acceptance among forwarding agents for the Pooling Partners model

The high acceptance of transport companies and suppliers shows that the company’s efforts have paid off. “The immediate positive response to the voucher confirms and has exceeded our expectations from the start,” states Klaus Doerr, Sales Director DACH for the PAKi Services of Pooling Partners. “We have found that some customers already use their vouchers for cooperation across borders and pick up euro pallets in Italy, the Netherlands or other countries.”

At present, forwarding agents delivering small volume goods still prefer pallet exchange while other areas are already managed completely with the PAKi voucher. “This collaboration proves that our solution has been tried and tested especially in the food retail industry and it is received with great interest by other market players as well,” concludes Christian Kühnhold, CEO of Pooling Partners for PAKi Services. “We simplify our customers’ processes significantly and always ensure that they can rely on punctual pick-up and the right pallet quality.”

Schnelle-und-reibungslose-Abwicklung
Quick and smooth processing with the PAKi pallet voucher at the Tegut receiving department.

Einfache-Online-Eingabe
Simple online entry and transmission via the client portal.

Optimale-Prozesse
Moritz Ziegler from Tegut at right, and Klaus Dörr from PAKi Pooling Partners work closely together.

 

Source: Pooling Partners