Evaluation of half pallet use by the paper industry
The German paper industry produces approximately 1.4 Mio. metric tons of hygiene papers at 18 locations in Germany and supplies retail currently by Euro pallets. Hygiene papers form an exeption due to the German retailer’s shift of the supply focus for this product group to half pallets.
The aim of the project was to assert – as an unattached party – the impacts on the supply chain of the hygiene paper producer generated by a possible changeover from Euro pallets to half pallets in the delivery to retail.
Based on gathering of the current logistic processes of involved project partners, suitable process variants of a supply chain for using half pallets were developed.
Built on qualitative valuation, two process variants were chosen to create a simulation model by implementing a detailed valuation of the economic impacts regarding to the investment needs and operating costs. Besides additional costs for implementation, costs especially for the operation of the future logistic were gathered in comparison to the current situation, were quantified by key indicators and were aggregated to a sector comparison.
Beyond the economic and qualitative impacts, the ecologic impacts of changing to half pallets were valuated regarding to a potential increase of CO² emissions.
The customer could integrate the knowledge of the report into the negotiation regarding a possible changeover of the supply and also argue the incidental additional expense towards his clients.
• Analysis of current processes
• Definition of target process variants
• Deduction of measures
• Valuation of costs