Revolutionizing Pallet Tracking with IoT: A New Era in Supply Chain Efficiency

You can be forgiven if you haven't put too much thought into a lowly wooden rung system called a pallet. A pallet can be easily ignored while high-end ERP systems take center stage, but Pallets are central to a supply chain, and tracking a piece of wood (or plastic ) has not been more crucial than it is today. They are the unsung heroes of the modern supply chain. In this article, we delve into the significance of tracking pallets and how modern technology in the shape of IoT has revolutionized pallet tracking and offered real-time visibility to supply chain operations.

At any given point in time, more than 2 million pallets are operational shipping goods and traversing millions of miles aggregated over short and long distances. Pallets are fundamental components of any supply chain; they are critical in traversing long distances and delivering products from the manufacturing plant to the distribution center and ultimately to consumers' doorstep. Their importance cannot be overstated. The global pallet market size is expected to reach 110 billion by 2032. However, despite their omnipresence, their tracking could be better, leading to low visibility and manual tracking and resulting in organizations' risk of loss or damage during transit.

Inventory Management

During the pandemic, the cost of almost everything went up, and the pallet price was no exception. It is noted that the cost of lumbar went up 400%, making pallets a viable asset to be tracked. Even though the prices have cooled down, keeping track of the pallets and where they are located is essential so they can be efficiently reused, recycled, and deployed and where and when they are needed to support the supply chain. Pallet inventory management is critical to run a successful supply chain. You should not be held up to ship inventory worth 200K if you are found waiting for an available $20 pallet. So, while inventory management of pallets is essential, you cannot do it effectively if there is no real-time data to support critical decisions. These may seem insignificant, but research shows that "More than 60% of companies use overly simplistic inventory management methods. These companies frequently have 15-30% more inventory than they need and lower service levels. ", as per Aberdeen Group. Pallets take center stage when it comes to delivering under pressure and managing delivery expectations in a flux global shipping environment, which is replete with variables, any of the variables capable of throwing a metaphorical wrench in the system to either bring a supply chain to a complete halt or to bring down the pace at which operates. Both scenarios are unwelcome and costly results.

Smart Pallet

Step in the smart pallet. Smart pallets are fitted with advanced sensors capable of relaying vital information, which can be used to enhance the pallet's utility further. One such benefit of enabling IoT sensors on Pallets is Real-time location tracking. With IoT-enabled pallet tracking, companies can track the location of their pallets at any given time, leading to better visibility. For instance, data from location tracking can drive operational improvements. One can focus on the location and dwell time to comment on how popular or not popular a product is based on how short or how long the pallet was carrying the product, sitting on the supermarket shelf. This also impacts business processes such as replenishment, as the trackers can send a timely notification when the pallet products are consumed and ready to replenish. IoT-enabled pallets are also the center of a fully automated warehouse; with innovative forklifts and automated loading devices, a pallet with suitable sensors and data can accelerate the process of positioning, deploying, unpacking, and returning processes without human intervention.

IoT Sensors

RFID-enabled pallets not just support a fully automated warehouse center but also drive goals towards sustainability and overall impact on the carbon footprint. Whether it is wood based on pallets or custom plastic, in both cases, smart pallets can report the number of trips, current location, and the number of times the pallet is handled. Like any other product, pallets, specifically wood-based ones, go through an aging process that involves cleaning, maintaining, disinfecting, and taking steps that directly impact the longevity of the asset and impact climate. A smart pallet with sensors can deliver metrics across the spectrum and support the above-stated goals and objectives. It also provides data to track product recalls in addition to inventory management. When clubbed with GSM, BLE, or Bluetooth low, energy trackers turn into an IoT solution that can be attached to pallets and used for tracking. These pallets then communicate with the preinstalled gateways around the warehouse, with location accuracy down to meters. These smart pallets can then be used around in a warehouse, and software solutions often help you define a virtual environment where these pallets can operate and notify when any such controlled pallet moves out of the warehouse, thereby directly determining the location and carrying out smart inventory management of the pallets.

Not Just Location !

BLE beacons can be equipped with custom sensors to deliver more than "last seen" status but report on multiple environmental metrics. Some pallets are designed to carry out loads that can be temperature-sensitive, such as perishable goods or pharmaceuticals. The smart sensors on the pallet can notify a central command in case the pallet leaves certain temperature-controlled zones like a refrigerated unit and also comment on how long the pallet was out of a given temperature range. So, smart sensors can manage and report on environmental conditions such as temperature and humidity, thus ensuring that goods are transported under optimal conditions and minimizing the risk of spoilage or damage. Fragile shipments like glass or electronics require beacons to be fitted with a different kind of sensor; these sensors help measure shock and tilt and detect incidents that cover drops, collisions, and potential mishandling. Many pallets are also designed to be single-use or limited-use; having these sensors installed ensures no error in identifying those specific pallets, thereby avoiding usage errors and improving overall efficiency.

Industries

Although almost all industries use Pallet tracking technologies, some specific industries' use cases are following :

Pharmaceutical Industry: Pfizer, a global pharmaceutical company, has implemented IoT-enabled pallet tracking to monitor the temperature of vaccines during distribution, ensuring their potency and effectiveness.

Food and Beverage Industry: Nestle, a leading food and beverage company, uses IoT-enabled pallet tracking to monitor the temperature of dairy products during transportation, preserve their freshness, and extend their shelf life.

Automotive Industry: Volkswagen, a renowned automotive manufacturer, leverages IoT-enabled pallet tracking to monitor the movement of parts from suppliers to assembly plants, optimizing logistics operations and reducing costs

Retail Industry: Walmart, a global retail giant, utilizes IoT-enabled pallet tracking to track the movement of goods from distribution centers to stores, reducing out-of-stock situations and improving customer satisfaction.

Logistics and Transportation Industry: FedEx, a leading logistics company, relies on IoT-enabled pallet tracking to monitor the location of packages during transit, enabling proactive route adjustments and minimizing delivery delays.

In conclusion, pallets continue to deliver lean logistics and cater to shipping needs worldwide. It's reported that pallets are responsible for carrying 80% of US commerce. This translates to an increased focus on this industry and continued investment in technology through IoT-based sensors. Tangible benefits such as location tracking, climate reporting, shock, and tilt impact continue to be central to the overall significance of smart pallets. Integrating IoT and advanced sensors into pallet tracking systems has also had a profound impact on supply chain efficiency and cost savings. By providing real-time visibility into the location and condition of goods, IoT-enabled pallet tracking systems enable companies to optimize logistics operations, reduce losses due to spoilage or damage, and improve inventory management. While pallets are here to stay, smart pallets are the way forward.