The Importance Of Industrial and Manufacturing Industries

Here's Why Your Business Needs Smart Pallets

20 October 2021 by Todd Edwards

Most businesses and organizations are heavily reliant on pallet racking systems. Walk into any industry today, whether it's the automobile, petrochemical, food and beverages, paper and packing industry, or moving companies, and you will find stacked wooden pallets and crates containing materials and products. And as more manufacturers discover the benefits of using pallets and forklifts, this system will soon become essential for every sector. However, did you know your business can get more out of this storage and shipping and transportation solution using smart pallets?

What Is a Smart Pallet?

A typical smart pallet has a unique identity that allows it to fit in a logistics network where every component is constantly communicating. Therefore, unlike conventional pallets, these use the internet of things (IoT) to communicate intelligently. For instance, a smart pallet can use machine-to-machine technology to determine its type of load, current location, ambient temperature, and intended destination. Most of these pallets use integrated sensors to monitor such handling and environmental conditions. They then send the data collected to the internet to be accessed as online reports by relevant entities.

Why Use Smart Pallets?

Smart pallets offer you a multitude of benefits, including:

1. Avoid out-of-stock scenarios

One of the worst things that can happen to your business is a stock out. It destroys your profit margins, increases operational costs, and taints your brand's reputation. All these add up to decreased customer loyalty and massive financial losses. You can avoid such problems using smart pallets that enable you to stay up to date with inventory status. Plus, some of these pallets come with features that facilitate the prediction of potential out-of-stocks. By doing so, they ensure you always have products ready for purchase and fulfillment.

2. Optimize fulfillment

Business operations rely on fulfillment areas such as bin picking, receiving and storing, packing, and shipping. However, activities in these areas sometimes stall and delay product delivery to suppliers, retailers, and customers. Fortunately, you can prevent that from happening using smart pallets and other systems like conveyors, cameras, and warehouse management systems to automate order fulfillment. That way, more products get delivered, and productivity shoots through the roof.

3. Reduce shrinkage

Shrinkage in a business refers to inventory loss due to theft, fraudulent activities within the organization, administrative errors, and damage. It's a huge problem, especially for retailers, since it often leads to loss of profits and capital. But, thanks to smart pallets, business owners can now keep track of aspects like the location of specific pallets and transportation conditions. Consequently, they get to minimize the loss of inventory associated with the mislocalization of pallets. In addition, the data provided by these modern pallets enables you to ensure goods get stored and transported under optimal conditions to reduce damage and, subsequently, cut shrinkage. 

If you have more questions, contact companies like PALIoT Solutions.

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