Introduction
When a large Canadian distribution center sought to streamline its supply chain operations, it turned to CTC Plastics for an innovative solution. By implementing CTC’s durable, eco-friendly plastic pallets made from post-industrial recycled materials, the distribution center achieved significant cost savings while meeting sustainability goals.
Challenge
The distribution center faced escalating maintenance costs due to frequent pallet replacements. Their existing wooden pallets suffered from breakage, inconsistent dimensions, and added weight, resulting in inefficiencies across their logistics network. Additionally, they aimed to align their operations with Canada’s growing emphasis on sustainability by reducing their environmental footprint. The distribution facility needed a pallet that could be traced from the originating facility to the end user and be tracked for return. The distribution facility also needed a quick ROI by achieving multiple-turn performance from the pallet and eliminating one-time use.
Goals
- Reduce distribution-related costs in maintenance and replacement.
- Improve load stability and shipping efficiency.
- Support sustainability goals by using environmentally friendly materials.
- Traceability of pallet from destination to end user.
- Mult-trip performance eliminating one-time use.
CTC Plastics’ Solution
CTC Plastics supplied the distribution center with its innovative plastic pallets, crafted from 100% post-industrial recycled materials. These pallets offered:
- Superior Durability: Resistant to damage from heavy loads, weather, and wear and tear.
- Lightweight Design: Reduced shipping weights without compromising strength.
- Uniform Dimensions: Improved automation compatibility and stacking efficiency.
- Sustainability: Contributed to waste reduction by repurposing recycled materials.
- Traceability: Unique barcodes to enhance traceability.
- Customization: Custom material formulation to achieve customer-required performance goals.
Results
After the first year of utilizing CTC Plastics’ recycled pallets, the distribution center experienced transformational results:
- $3.5 Million in Cost Savings: Reduced pallet replacement costs and shipping inefficiencies.
- Sustainability Achievements: Diverted over 1.7 million pounds of waste from landfills by using post-industrial recycled materials and saving 2,554 trees.
- Enhanced Supply Chain Efficiency: Uniform pallets improved automation processes and minimized downtime.
- Improved Customer Satisfaction: Reliable pallets reduced damaged goods in transit, strengthening client relationships.
“We are seeing amazing results from this program and actually have pallets in circulation that have been shipped out and returned 50 times.”
– Distribution Center Team
Conclusion
CTC Plastics’ collaboration with the Canadian distribution center stands as a testament to the power of innovation and sustainability in manufacturing. By replacing traditional wooden pallets with CTC’s durable recycled options, the center not only saved millions but also became a leader in eco-conscious logistics.
Next Steps
Discover how CTC Plastics can elevate your supply chain efficiency and sustainability. Contact us today to explore our range of recycled plastic pallets!