Most products are shipped via pallet and stored on pallets. If you run a business in which stocking a warehouse is part of your day to day operations, how you deal with pallets will determine your company’s efficiency and profit margins. One good way to manage the pallets in your warehouse is by implementing a pallet tracking system. Below are five reasons why a pallet tracking system may be a smart fit for your business.
1. Warehouse Shrinkage Is a Huge Drain on Profits
One of the reasons why you should implement pallet tracking is to prevent warehouse shrinkage. Shrinkage, simply put, is stock that goes missing in a warehouse. According to Fortune, shrinkage costs retailers in the US $42 billion a year. Sometimes, employees simply can’t remember where a pallet was placed. Other times, unfortunately, the cause of shrinkage is more nefarious such as is the case with employee theft.
2. It Can Increase Warehouse Efficiency
Efficiency is the key to running a warehouse. Products need to be quickly stored. Then they need to be quickly retrieved as needed. To do this, you need to give your employees the tools to find what is needed as quickly as possible. Without a pallet tracking system, this process can be long and cumbersome especially if the warehouse is large. However, this task is made much easier when individual pallets are tagged with RFID chips that can be instantly located in a warehouse.
3. It Can Alert You When Pallets Are Not Where They Should Be
You can also use a pallet tracking system to program exactly where pallets should be placed in your warehouse. As soon as the pallet is unloaded off of the truck, your staff will know where to place it. If it is placed in the wrong spot or dropped off at the incorrect loading bay, you will be immediately notified. This way, you can correct mistakes as soon as they happen. Pallets won’t get lost in your warehouse, and there will be minimal interruption to your business due to human error.
4. It Can Alert You When Pallets Are Moved
Another thing pallet tracking software can do is alert you of when pallets are moved. This can insure that pallets are returned on the correct schedule. It can also curb employee theft. Unfortunately, employee theft in warehouses is all too common. However, those thieves will not be able to steal an entire pallet of products or supplies. The tracking system will act as an excellent deterrent.
5. It Will Help You Compete in the Current Marketplace
The business of using warehouses to store products sold at retailers has become very high tech. According to a story by Forbes, many businesses have automated their warehouses with robots. While you may not be able to afford robots, you can probably afford a pallet tracking system.