John, supply chain manager at a mid-sized retail organization, John faced a challenging dilemma. His European retail company operates from several hubs across the continent and had long been looking for a more efficient way to handle inbound pallet flows. Many of their suppliers were delivering goods on different types of pallets. This led to waste, extra searching and sorting, and thus increased costs. The time had come to address these inefficiencies, not only to save costs, but also to operate more sustainably.
My starting point was clear: I started talking to my suppliers to see if we could come up with a solution together. Our suppliers were facing the same kinds of challenges. In the end, I came to the conclusion that we needed to take the lead and make it easier for suppliers to deliver goods on high-quality pallets, without difficult settlements between them.
The solution to this complex problem comes with the introduction of PCT Online, available 24/7 via the "cloud. This innovative system collects excess pallets from our European hubs. They call this "Collection. We are rewarded with VAT-free e-Credits as compensation. The e-Credit is based on blockchain technology. The used pallets are simultaneously resold by PCT to merchants who resell them, sometimes after repair, as reusable pallets.
What stands out is that PCT uses multiple independent European depots to pick up pallets. This ensures a fair market-based price, even if it sometimes deviates from expectations. This is understandable since PCT is solving a complex problem. What is important to us is that the system of pickup continues even if market conditions are once against us.
Part of the balance of e-Credits we receive is made available to our, PCT Online platform member suppliers. By doing so, they are "rewarded" for their participation and contribute to reducing discussions about "wrong" pallets, including with other customers. By making the e-Credits available, they are also able to switch from single-use to multi-use pallets.
Incidentally, the platform even works with our suppliers from Asia and America 24/7 in the "cloud. We have EPAL Europallets delivered there on site via a so-called Delivery order. Thus, our goods arrive in Europe on the right pallets.
The transition from the single-use pallet to the use of multi-use EURO pallets has significantly improved the entire supply chain. These standardized pallets make things clearer and guarantee quality. Some of these pallets are reused to resupply customers and suppliers, while the remaining pallets are collected; the process of Matching. As a result, the balance of VAT-free e-Credits grows.
Benefits PCT Online
The benefits of this optimization are clear. Less time is wasted sorting and storing pallets, and the entire supply chain, including suppliers, benefits from the arrangements. In fact, together we save costs and contribute to a more sustainable future by converting more single-use pallets into reusable variants. This way we no longer have the "hidden costs" and the costs that are still there become insightful and transparent.
John's story illustrates that supply chain optimization not only provides economic benefits, but also contributes to a more sustainable future. PCT Online not only helps John's company operate more efficiently, but also transforms the entire supply chain into a more sustainable and cost-effective operation. A great example for any supply chain professional striving to improve.