Pallet loss, including pallet theft, is an ongoing issue for many supply chains. Attention to some basic practices and introducing new technologies can make a powerful difference. Here are eight ways to help prevent pallet theft:
1. Make sure that everyone knows how much the pallets are worth.
Employees or trading partners often assume that a pallet or crate has little value and treat it accordingly. It is essential to foster an ownership mindset. Once employees understand the value, they will likely make decisions preventing asset loss.
2. Don’t leave assets exposed.
Pallets stored in unsecured places such as open docks, parking lots, or unlocked trailers create easy opportunities for pallet thieves. Pallets, including trailer loads of pallets, stored in secured areas will be at less risk.
3. But if you do, minimize the risk of exposed assets.
Sometimes, pallets must be stored in unsecured areas. Try to avoid extended storage by encouraging frequent removal. Highly visible “Property of…” signage, adequate lighting, and CCTV surveillance can help.
4. Create a pallet deposit system.
If feasible, a deposit system can be highly effective in making trading partners cognisant of the value of the pallets and helps “put skin in the game.” Deposit systems have become less popular in recent decades, but as the reusable packaging trend grows, they again seem to be winning broader acceptance. Some companies take a different spin, offering a monetary rebate for return, making it a positive reinforcer rather than negative, as in the case of losing deposits.
5. Undertake periodic pallet inventories.
Taking regular pallet inventories can identify variance between book and actual numbers and signal the existence of a pallet leakage problem that requires action.
6. Train and supervise “chain of custody” decision-makers.
Frontline personnel of your company and trading partners make conscious or inadvertent decisions that keep pallets under your control or allow them to disappear. Effective training and supervision will prevent costly mistakes such as:
- Leaving pallets exposed in unsecured areas
- Using the wrong pallets for the wrong customers.
- Allowing unauthorized truck drivers to “help declutter your dock” by permitting them to remove empty pallets from your facility
- Shipping reusable pallets to trading partners that have not formally agreed to return them
- Failing to pick up empty pallets from customers or casually leaving them behind at pickup locations to make room for backhauls
7. Assign pallet oversight responsibilities.
If you have a serious pallet loss issue, the appointment of a project manager can have a speedy ROI. With the support of a powerful sponsoring executive, the project manager can create the necessary oversight, instill employee and stakeholder accountability, and work toward instituting an effective control system.
8. Consider pallet and trailer tracking.
IoT technologies are now widely available to help companies manage their pallets. Whether inexpensive barcode, RFID, or even cellular solutions, technology can help you keep a handle on your pallet inventory and points of accumulation or loss. Even tracking a few pallets with GPS trackers, for example, can help identify issues such as theft, mis-shipment, or forgotten loads of pallets in your yard. GPS trackers on trailers can assist in the recovery of stolen trailer loads.
Aside from the direct cost of pallet replacement resulting from pallet theft, there can be other negative impacts related to being short of pallets for shipments or being forced to use the wrong pallets. Such challenges can result in late shipments, unnecessary product damage, and customer dissatisfaction.
Pallet theft is not inevitable. By changing your perspective and embracing pallets as critical supply chain contributors, you are well on your way to making sound decisions to protect these valuable assets.
