In the world of suppliers, few things are as trivial as discussions about pallet balances with customers. When we finally reach agreement on these balances, the next challenge begins: how can we maintain the balance? We can still manage this in the Netherlands, but as soon as we look at our international partners, the problems pile up, says logistics manager Adrienne.
Fortunately, we have found an effective solution with the introduction of Pallet Control Tower Online (PCTO), available 24/7 via the "cloud. As a supplier, we and our customers now have access to our collective balance of VAT-free e-Credits. These e-Credits are based on blockchain technology, thus ›safe'. We have agreed together on how to handle pallet flows and the associated costs. We opted for a system where the person who incurs costs is also responsible for payment. Proceeds from returns are returned to our joint VAT-free e-Credits balance.
In practice, this works as follows: for each pallet called, 1 e-Credit is deducted from our balance, while we cover the transportation costs. Our customer receives our goods on the correct pallets and then has them picked up via PCT Online. A depot receives the pallets, sorts them and charges our customer for any associated costs. The process of Collection, Delivery and Matching. The e-Credits balance is then topped up with the e-Credits representing the value of the pallets handed in. Since the e-Credits are VAT-free, there is also no hassle with inter-country settlements. Incidentally, the platform even works with our customers and suppliers in Asia and America.
At any time, we can check if enough pallets have been returned. If our customers do not return enough pallets, they can purchase e-Credits from PCT Online to rectify the balance. This process is completely transparent. Our arrangement involves the virtual exchange of a pallet vs. an e-Credit. This is easy to track, we can do the virtual exchange before or after the physical delivery of goods.
Thanks to the PCTO, we can now hand in our pallets effortlessly without any dispute between me and my customer. If a dispute does arise, it is handled by PCT's account manager and I am not involved in this.
In this way, we not only contribute to supply chain optimization, but also save unnecessary costs and contribute to a more sustainable business model. Reducing waste and using resources more efficiently is essential for a sustainable future. PCT Online helps us achieve exactly that.
As a logistics manager at a commodity producer, I am excited about the positive impact this platform is having on our business processes and sustainability efforts. It shows how collaboration and innovation in the supply chain can make a world of difference. We are poised for a smarter, more sustainable future, and PCT Online plays a crucial role in our success story.