Supply Chain Pallet Cost? Italian Conference Reviews Supply Chain Research

Over 30 companies among large scale retail trade, producers, and 3PL-Third Party Logistics providers contributed to the large sample researched by C – Log, Research Center on Logistics’ Università Carlo Cattaneo – Liuc in collaboration with the Politecnico di Milano. The research was presented at a March 3, 2010 conference entitled, “The management of pallets through the supply chain of consumer goods.”

With this research, stated Professor Dallari – it was possible to derive an estimate of the total cost of ownership of pallets for the whole consumer goods supply chain. Two configurations were examined, a simple case of manufacturer shipping directing to a distribution center, as well as a more complex supply chain involving 3rd party logistics providers.

Total supply chain cost per EPAL pallet was found to range between 2.43 euro and 5.57. The complex supply chains were more at risk of pallet loss, criminal misappropriation and return of broken pallets, with retail chains generally not being as committed to the management of pallets as manufacturers. It would now be interesting, commented Professor Dallari, to develop an analysis of modalities and management costs of pallets by comparing the system of interchange with the pooling system which, as noted, is the most widespread in the rest of Europe. “

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