Advantages for the resale
Advantages for the consignor
The consignor has a series of advantages with respect to resale:
- No “struggle at the ramp”
- Clear ownership structures
- no loss or forfeitures, repairs, larceny or theft and/or replacement purchase
- no pallet notes– the end with jumble of bits of papers
- no fixed or tied-up capital
- more flexibility in the choice or selection of transportation partners
- considerably lower administrative costs
- considerably lower transportation costs
Advantages for the forwarding agent
Forwarders, who up till now have been bearing 65% of the total cost, the greatest share of the costs, are left out in the resale system, for they are now
merely transporters/ Forwarding agents of the products. Cost reductions in 6 digit figures are not uncommon in this system.
And the everlasting “struggle at the ramp” with discussions and arguments on the exchange of pallets, quality short comings … comes to an end.
Advantages for the consignee
The consignee can also benefit by changing over to resale:
- If the consignee is simultaneously plays the role of a consignor (industry/wholesale) he therefore receives high quality pallets for further employment in his production chain.
- In the contrary, if the consignee is in the role of the final consumer (retailer), several models have developed prom the practice, in which the consignor renders the system of resale
- also attractive for the consignee, e.g.:
- The consignor repurchases his own pallets and includes a remuneration for the handling costs of the pallets incurred by the consignee (e.g. for sorting out / handing over of the pallets, etc.). The amount for this remuneration is the sum of x per pallet.
- The consignor subventions the price of a new pallet in such a way that during sales of the pallet to the pallet manufacturer the consignee does not incur any loss but rather yields a profit.
- No more administrative costs – no pallet notes – no additional accountancy or stocktaking of the pallets.
- Clear ownership structures: The consignee is the legal owner and can thereby arbitrarily utilise the pallets or resell them.