www.rfidjournal.com/article/articleview/4100/1/1/ -
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Published on: 5/29/2008
Last Visited: 5/30/2008
Stephan Willigens, S.L.R.'s managing director, says one of the system's biggest advantages lies in the economics of the pallet business.An underappreciated necessity in the shipping and warehouse business, pallets are a serious business, he says.They enable warehouses to stack goods from floor to ceiling, and to facilitate the loading and unloading of products.But the typical wooden pallet can be used only 10 times before it must be replaced-at a cost of between $11 and $15 apiece in Europe.A major retailer's supply chain might include 100 million pallets, all purchased or rented from a pallet supplier."The customer pays a flat rate, full stop," Willigens says.
By installing RFID chips, Smartflow makes a different approach possible.Instead of buying or leasing wooden pallets from a supplier, Smartflow's customers will essentially rent RFID-equipped plastic pallets.Because each pallet can be tracked from the time it enters a customer's warehouse until the time it leaves, Smartflow can track how long that pallet remains in a customer's possession-and bill that company accordingly."That way, they only pay for the pallet when they use it," Willigens says.
With a trackable pallet pool, Willigens explains, everyone along the supply chain saves.