Mateusz boruta. ecr poland. pallets at ecr forum moscow
1. Working together
to fulfil consumer/shopper needs
– better, faster and at less cost in a sustainable way
The Pallets Odyssey
2004-2009
ECR Forum
Moscow, 2010.06.02-04
2. Agenda of the presentation
Historical background
Pallets challenges
ECR Poland Pallets-related activities
2004-2009 sum-up
The next steps
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3. Member Companies 05.2010
MANUFACTURERS - 38 companies
RETAILERS & DISTRIBUTORS - 14 companies
SERVICE PROVIDERS – 20 companies
ECR Forum Moscow, 2010.06.02-04
4. 50 years of Pallets in Poland
‘68 - EUR Pallet standard introduced by PKP railways
80’s & early 90’ – superb quality, no issues
Late 90’s - quality control issues, brand eruption
2004 – PKP lost the supervisory rights
As of 1st of May 2004 EUR-PKP pallets no longer officially
produced and legal
Increasing numbers of issues:
Receiving of goods refused, pallets to blame
Problematic pallet returns
Safety concerns
2007 – IPP Act change (pallets affected)
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5. ECR & Pallets – why?
Problem of all participants and supply chains
Different aspects of the problem for manufacturers,
logistics companies and retailers – but same core
No single party could solve it by themselves
Increasing number pallet-related conflicts between
trading partners
The only possible solution – JOINTLY elaborated best
practice guidelines & market-wide standards
2004 H2 – ECR Members officially create the „topic”
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6. ECR Poland pallet solutions
A comprehensive report on „Pallet Market in Poland” ‘2005
Thorough analysis of the situation, root causes and solutions
proposal
Outcome - continous improvement approach
Work at basics – simple, easy-to-use, efficient tools ‘2006:
Pallet Assessment Cards
Pallet Costs Analysis sheet
Training programme – both open and in-house
Close cooperation with PKN Epal ‘2008
Promoting one standard for pallets assessment
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10. How to measure real costs
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11. Pallet Costs Analysis sheet
Free download from www.ECR.pl
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12. 2004-2009 effects wrap-up
Pallets need to cost money
Big numbers
Total number of pallets used in Poland
End of 2007: ca. 70% ”EUR pallets” non EUR
End of 2009: only 15-30% of EUR to be disqualifiable
Rationalised approach to pallets management
Cost and benefits analysis
Risk mitigation
Quest for value
Solutions alternative to EUR standard
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13. Pooling systems
And others…
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14. The right pallet management…
Which system to chose
One-way and/or disposal pallets
Own pool of open system (you own the EUR pallets)
Own pool but professionally managed (partially outsourced)
Pallet rental (full outsourcing)
How to make the right decision
Supply chain analysis – configuration, geographies
Trading partners willingness to adapt changes
Feasibility and cost of the reorganisation
Costs of using pallets vs expected benefits
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15. Example – costs analysis
Own pool of EUR pallets Rented pallets
Price of new pallet Cost of rental / delivery
”Natural damage” / pool depreciation ”Natural damage” / pool depreciation???
Repair costs Costs of delayed return
Transport costs (empty pallets) Transport costs (empty pallets) ???
Warehousing costs (empty pallets) Warehousing costs (empty pallets) ???
Warehouse handling Warehouse handling
Administration costs Administration costs ???/!!!
”Political costs” - negotiations ”Political costs” – entry barriers
Legal risks Costs of legal check
Environmental fees Pallet for internal use
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16. The Pallet Odyssey Continues…
Revolutionary Technologies? RFiD?
Pallets owned vs rented?
Wooden pallets (EUR/pools)?
Cardboard?
Plastic?
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17. Any questions?
Thank you for your attention!
Mateusz Boruta
mateusz.boruta@ilim.poznan.pl
www.ecr.pl
www.ilim.poznan.pl
ECR Forum Moscow, 2010.06.02-04
