Modern distribution systems

03/10/2007

A research carried out by the logistic center of the Carlo Cattaneo University (Liuc) and the Milan Polytechnic, published in September by Federlegno-Arredo, has analyzed the pallet industry in terms of operations, management, logistics and costs, mainly as relates to the logistics of distribution systems and the world of packaging.

The survey relied on the competence and contribution of industry associations: on one side, Federlegno-Arredo and its member association Assoimballaggi, the Italian association of wood packaging, pallets, cork and logistic services, which provided a vision of the entire production, repair and management cycle for wooden pallets; on the other, Indicod-Ecr, the institute for consumption goods companies, which analyzed the relationships between brand industry and large distribution.

The research illustrated in the volume (available online at www.lampidistampa.it or ww.ibs.it, as well as in bookshops) is based on interviews with logistic managers and visits to the main distribution companies, which have allowed to draw an updated map of the flows and features of panels handled by distributors and their logistic partners.

With an annual volume of about 600 thousand pallet units handled by distribution centers and a value in excess of 8 Euros each, that will increase further due to the rising price of raw material wood, pallets are more and more a corporate asset.

As the pallet business is growing, inevitable organization, economic and management issues arise. From non-compliance with the Epal system and the consequent growth of a parallel market that buys and sells used pallets, to the difficulty of effective control due to a number of different actors inside the system and the transfer of responsibilities from one to another, with consequent inefficiencies.