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Rising energy costs, a lack of raw materials, and weather extremes are just some of the issues affecting the supply chain. Business insiders consider the palette the glue that holds shipping functionality together. However, fabricating these pallets can also be affected by problems with supplies. How pallet manufacturers solve supply chain problems could predict whether they stay in business or fall victim to unexpected shortages and expenses.
Do you remember the COVID-19 disruptions that caused chain disruptions, which lasted almost two years? It does not take a virus to put your supply chain management capabilities to the test. For example, if you make wooden pallets, you are familiar with increased raw materials expenses. Lumber prices are steadily rising, and hardware costs are not far behind.
While any pandemic-induced labor shortage is largely in the rearview mirror at this time, the pallet industry is facing other challenges. The longevity of plastic pallets is quickly making them a preferred shipping method, which requires some pallet makers to retool. Also, there is a growing demand for environmentally friendly cardboard pallets. While you want to reduce waste, you also need to reduce costs to provide customers with quality pallets at a competitive price.
We have discussed some of the industry's problems. How pallet manufacturers solve supply chain problems, customer pain points, and changes in demand will determine how well their companies do compared to the competition. Which solutions could be well-suited for your business? More importantly, how can they keep you nimble, rolling with the punches of a changing market?
Automating the fabrication of your pallets solves several supply chain problems. You will no longer be at the mercy of the labor market. While other companies have to scale back production because of labor shortages or increases in labor costs, you can continue to make plastic or wood pallets to fill your orders.
You need warehouse space to store the raw materials you need for manufacturing your products. If you overproduce, you will be taking up material storage space with products. This, in turn, may harm your ability to stay on top of incoming orders because you have fewer raw materials. Forecasting sales trends is the best way to overcome this problem.
You most likely have a list of favorite suppliers. However, do you also have a list of backup suppliers? Work with several suppliers who prove to be reliable. If you encounter someone who cannot give you real-time information on product availability, fill their spot with someone else who can.
Your commercial customers know what pallets do. They know how they function and why they need them. However, do they know why they need your pallets instead of those being sold by the competition? Value-based selling is a technique that identifies secondary benefits for your customer base. Examples include sustainable pallet manufacture because of the materials used or the longevity of the finished goods you offer because of specific fabrication details.
Buying pallets is no longer as simple as ordering a wooden pallet stack. Instead, customers are now looking for possible alternatives for some uses. Plastic pallets are becoming increasingly popular, and being able to develop them on demand is critical. Additionally, ensure that you are on the cutting edge of pallet technology. We have already discussed the environmentally friendly cardboard pallets. Be ready to supply them to your customers if requested.
While it is true that doing so requires an investment in hardware, software, and employee training, it is well worth it in the long run. You will find that when the next supply chain crisis hits, the pallet company that is able to change products quickly will be the one that supplies products to the customer. It is fair to say that being able to switch raw materials in production is a good way of protecting your business from shortages or sudden price increases.
While the need for wooden pallets will likely never entirely disappear, plastic pallets are quickly becoming the products of the future. They are ideally suited for automated warehouse functions, and concurrently, more and more pallet customers are looking to automate warehouses to solve their supply chain problems. If your customer base primarily comprises companies looking to automate, switching to plastic manufacturing makes sense. Conversely, ongoing wood manufacturing is ideal if your target demographic is the smaller business not looking to automate soon.
Remember that tools for how pallet manufacturers solve supply chain problems involve raw materials coming to your shop and pallet products leaving it. We have already addressed the material element of the supply chain but only touched on the marketing side. However, now might be the time to take your advertising and brand-building to the next level.
If this sounds like a tall order, do not worry. Our pallet business marketing agency will gladly assist you every step of the way. Solving problems refers to your supply chain, branding, and marketing. Let’s do it together. Call us today!
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