Economics
Resale with
added value
Over its life a pallet is used across very different industries. Three models are available: exchange, resale, or deposit and rental. Experience with many customers shows that pallet exchange in particular is causing growing problems – above all through rising costs.
Recognised by the BME as an innovative logistics solution in 2010
The concept
Under “resale with added value” the shipper passes part of the savings on to the recipient – for instance by subsidising the pallets and thereby creating a financial incentive. That makes resale attractive for the recipient too. Everyone involved benefits: shipper, haulier and recipient.
What practice shows
Falkenhahn AG has tested this concept with numerous customers. A survey and evaluation of customer data showed that resale is considerably more economical and pays off for the shipper in a good 90 % of cases. Savings of € 1.20 per pallet are achievable.
Recipients can save as well, once the shipper creates a financial incentive. And hauliers, who previously carried the largest cost block at 65 %, are taken out of the equation – they return to the role of the transporter.
Why exchange is expensive
There is no obligation to exchange. What remains is sorting effort, inspection effort, settlement charges, documentation and shrinkage – costs that appear on no pallet invoice and are incurred anyway. In the long run resale also serves the environmental case, makes pallet management more efficient and minimises shrinkage.
The concept was recognised as an innovative logistics solution by the German Association for Supply Chain Management, Procurement and Logistics (BME) back in 2010.
Cost calculator
Run the numbers on
your pallet pool.
Comparison per year
Model calculation based on the Fraunhofer study on pallet exchange (2009), brought up to date. Exchange costs include sorting, inspection and settlement effort as well as shrinkage. A survey among Falkenhahn AG customers showed that resale pays off for the shipper in a good 90 % of cases; savings of € 1.20 per pallet are achievable. We will calculate your individual figures as part of the logistics concept.
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