In today’s economic environment, businesses need to find ways to lower operating costs, improve productivity, solve supply chain issues, and manage labor challenges. At the same time, trying to maintain quality of product and reliable service to their customers. Many companies have turned to automation to solve some of these challenges. Take Blanca Potato for example. A recent article in the Pallet Profile (Nov 1, 2024) “What’s Coming on Board?” discusses how Blanca solved a significant labor problem they were having. Processing and packaging used to be a labor-intensive operation, and challenges with labor shortages forced a change. Automation became a cost-effective strategy. Or so Blanca hoped.
How cheap costs money: Broken pallets shutting down production
The Pallet Profile reported that Blanca suffered production issues as low-grade pallets broke down disrupting the automation process. Pallet “failure rates of up to 20%” caused headaches, extra work, and delays as broken pallets compromised the system. Broken pallets had to be removed, re-palletized, and the system restarted until the next low-grade pallet broke. Broken pallets and the labor required to correct the problems caused by them were “negating the projected savings from automation.” Repeated stoppages even made it harder for Blanca to meet promises to their customers.
How did they fix this? Blanca after doing some research and testing, turned to high quality pallets. With quality pallets, broken pallets and the stoppages caused by them vanished. Pallet Profile reported that Blanca was rejecting “less than 1%” of pallets delivered over a year time span. Cheap is sometimes costly, and quality can lead to real savings.
Automation Technology: Driving The Need for Quality and Consistency
Automation and robotics are popping up everywhere. Automated pallet moving systems are showing up in warehouses and distribution centers, manufacturing facilities, food processing, and even large-scale retail stores. More and more pallets are being moved via conveyor systems and automated robotics. Self-driving forklifts and shuttles reduce labor requirements and speed up productivity. Reliability of pallets is steadily becoming more important to ensure the smooth operation and uninterrupted workflow to maintain higher productivity. Pallet Profile states that, “Pallet Quality conversations and audits need to be on the radar screen of more providers.” Pallet breakdowns lead to stoppages like Blanca experienced. The risk factor of low-grade pallets can have costly repercussions when new technology comes into play. And new technology and automation is being incorporated at an increasing rate.
Cost-Effective Quality: Realizing Long Term Savings
Quality can be expensive. It can be difficult to bypass the immediate savings of much cheaper, low-grade, recycled, or even combo pallets. However, companies should look to their own data, and the data of others. Does cheap only save money now? Does cheap become costly in the long run? Our previous blog post “Cost vs. Quality: A Manufacturer's Guide to Long-Term Profitability” provided a case study of lessons that we can learn from Boeing. In the early 2000’s, the aircraft manufacturer began developing a company culture focused on cutting costs and increasing profits. This directly led to a steady decline within the company bringing Boeing to where it finds itself today. Deeply in the red. Boeing has not been profitable since 2019 according to their own reporting. In the end, all businesses need to focus less on cutting costs, and finding cost-effective measures that will realize steady and reliable gains.
Our Quality Matters: The Blackberry Pallet Difference
At Blackberry Pallet, we understand the importance of balancing cost-effectiveness with quality. In today's competitive market, businesses must find ways to optimize their operations without compromising on reliability. As part of the Turman Group, Blackberry Pallet is vertically integrated within our supply chain, giving us greater control over the entire pallet production process. From sourcing raw materials to final inspection, we prioritize quality at every step. Our commitment to excellence ensures that our pallets are not only durable and reliable but also cost-effective. By choosing Blackberry Pallet, you can be confident that you're investing in a product that will help you optimize your supply chain and drive down costs.
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Related link: Pallet Profile www.palletprofile.com
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