The pallet industry has taken great strides in adopting and leveraging information technology in recent years. The deployment of technology has been driven by the current business environment as well as the inherent empowering and enabling characteristics of computers and networks.
Some of the key factors that contribute to the increased interest and utilization of technology include:
• Ever-decreasing cost of information technology
• Increasing availability, speed and reach of the Internet
• Multinational clients’ use of electronic data transfer
• Large corporate clients’ requirements for transparency of operation
• A highly competitive, low margin environment that drives businesses to find innovative ways to cut costs
• The demand for real time information (e.g., actual price of lumber when submitting quotes or doing just-in-time deliveries)
• Driving technology innovations, such as radio frequency identification (RFID)
iLogic Inc. has been developing software solutions for the pallet industry for over 20 years. Over the past decade, it has taken advantage of the Internet to develop Web-based solutions that capture and share pallet information.
Some of the benefits of Web-based solutions include the fact that there is no software to install. Users can access Web-based applications without needing to install any special software. Using a Web browser, such as Internet Explorer, users can securely log into the application from anywhere in the world.
In addition, Web-based solutions are more efficient for collecting data and sharing information. They run off a central database, making it possible to pool data from multiple sources. Users only need to input data once; there is no need to submit the same information repeatedly to different departments or systems. Once the data is entered, it can be shared with multiple parties, and collected data can be used to generate information ‘on the fly,’ such as total pallet manufacturing costs, cost per pallet trip, pallet demand patterns and trends, and more.
The centralization of information enables a variety of organizations to work together to form online communities and pallet pools. Lumber suppliers, pallet manufactures, recyclers, logistics companies, producers and brokers can connect and share information cost effectively. Pallet trading partners can easily enter information about how many pallets were delivered, received and sent back, resolving any discrepancies in the process.
iLogic developed a national container pool management system for the Canadian Pallet Council (CPC), a nonprofit organization with 1,400 members that own and exchange about 8 million pallets in circulation. The CPC implemented CTSWEB in 2003. It was developed by iLogic as an Internet-based container pool management system to help members manage their returnable assets.
CTSWEB is currently tracking over 50 container types and is used by manufacturers, distributors, third-party logistics companies, pallet manufacturers and other trading partners. The millions of online transactions are stored in a central database and are accessible to registered users via secured Internet protocol.
CTSWEB has greatly reduced the redundancy and administrative costs of pallet management. The CPC has estimated a savings of over $10 million for its members.
The system provides real time pallet inventory information to allow logistics staff to view and optimally manage their assets. It also drastically reduces the instances of confrontation and misunderstanding because transactions are in real time and can be viewed by all parties involved. CTSWEB enables large retailers to manage pallet exchange with external suppliers and also transactions with distribution centers and stores. A flexible, responsive reporting system enables data to be grouped by location, corporation, regions and other user definable manners.
iLogic also developed a container tracking and retrieval system for Ongweoweh Corp., a leader in the pallet industry. The system helps Ongweoweh distribute, manage, recover and recycle million of pallets yearly throughout North America.
Ongweoweh implemented NativeTrax (www.nativetrax.com) in 2003. It is a Web-based container tracking and retrieval management system. NativeTrax receives periodic data downloads from the producer clients. These downloads contain information on the quantity and type of containers shipped to various locations. NativeTrax administrators schedule transfers for different container types from producers to consignees, from consignees to depots and from depots to producers.
This system helps Ongweoweh manage the tracking, sorting and repairing, purchasing, and inventory management for their clients. It also allows clients to view their asset inventory in all locations in real time, enabling them to understand and manage their assets more proactively. Information provided by NativeTrax also enables its administrators to optimize container utilization and to reduce pool size; it allows NativeTrax staff to schedule retrieval routes more efficiently and to have much better control over the timing and invoicing of repair activities.
Also, iLogic developed an Enterprise Resource Planning (ERP) application for Woodbridge Pallet Ltd., one of Canada’s largest pallet manufacturing and repair companies. Woodbridge Pallet’s ERP system was specifically designed to address the unique activities of pallet manufacturing and repair companies.
The application manages inventory, production, employee productivity, payroll, customer relationships, shipments and invoicing. It reduces much of the information redundancy and centralizes information in a single depository, allowing much improved information usage. For example, customer order information is entered once and can be used for shipping, billing, inventory and customer reporting functions.
The pallet industry has become increasingly competitive, and profit margins are slim. Information technology can facilitate and enable fundamental rethinking and re-engineering of business processes to achieve dramatic improvements in organizational productivity and performance. In a competitive environment, prudent deployment of technology solutions can be vital to the growth and future of a company.
iLogic has specialized in developing returnable asset tracking applications for corporations and associations alike. Utilizing its specialized Web-based systems, returnable assets such as pallets, containers, bins and racks are tracked in terms of their location, quantity and condition. System users have the ability to share information across a centralized database while being able to quickly and easily request new shipments of assets when needed.
iLogic has been helping the pallet industry move, track and manage millions of pallets over the past 20 years. Whether it’s developing a custom pallet tracking application or a full-fledged ERP system, iLogic has the skills and experience to develop the right solution.
For more information, contact Victor Cheng, president of iLogic, via e-mail at vcheng@ilogic.com.
