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Europe’s #1 integrated full-service pooler and producer of pallets and boxes.

References - Tegut

Tegut
Pallet Pooling – a recipe for success in the food retail business
Tegut

tegut… gute Lebensmittel GmbH & Co. KG operates 280 food stores across Germany – in the states of Hesse, Thuringia and Bavaria and the cities of Göttingen, Mainz, Stuttgart and Ludwigsburg. tegut… stocks around 25,000 different products and is serious about freshness, locally sourced produce and sustainability – a holistic concept that places high demands on logistics. In order to create the necessary day- to-day flexibility and even out seasonal fluctuations, the company, which employs more than 5,200 people, is optimising its logistics processes. Since March this year, tegut… has been using the PAKi services of Pooling Partners – with remarkable success.

Ennepetal – For many years, tegut… has been using euro pallets to store all its products. In the past, the company exchanged pallets directly with the shipping company in question. “In recent years, this one-for-one exchange system has led to more and more discussions on the loading ramp,” explains Claus Goldbach, Head of Logistics at tegut…. Sometimes the drivers wanted to sort the pallets themselves in the incoming goods or recycling areas, which is against regulations.

Keen to make its load carrier management systems more professional and to simplify the process, tegut… spent several months comparing various solutions. “There are big differences in terms of service and quality between the providers,” says Goldbach. “That’s why we studied the issue in detail, asked existing customers for their impressions and involved our colleagues in Purchasing in the selection process. Pooling Partners appeared

extremely reliable right from the start and convinced us with their efficient model. Their good reputation also played an important role in our decision.”

Rapid and widespread acceptance of the PAKi pallet voucher

After initial discussions, the two partners switched a large proportion of the pallet system at tegut… to the PAKi voucher system in the space of a few months. Since then, instead of taking empty pallets when they deliver goods, shipping companies can choose to receive a PAKi pallet voucher from Pooling Partners with a unique code that can also be transferred to third parties. When the voucher is redeemed at Pooling Partners, the pallets are credited and can then be ordered in full truckload quantities immediately, and the desired quality level of pallet collected as and when required from one of the 10,000 pooling stations across Europe. Alternatively, the pallets can be delivered to the chosen recipient. “The PAKi services have proved to be a user-friendly solution, both for our suppliers and for us. We were surprised at how quickly the service gained widespread acceptance for dry goods. The volume we initially expected has more than doubled already,” says Moritz Ziegler, Team Leader of Dry Goods Storage at the tegut… site in Fulda.

Since the new logistics solution was introduced, tegut… has benefited from simple processes in its day-to-day operations. Before, staff used to fetch the exchanged pallets themselves from the adjoining recycling area after every goods delivery. Now they save time because they no longer have to walk there and back. In addition, the external drivers receive their pallet voucher in the warehouse office itself, instead of having to enter tegut… premises.

Adjusting for seasonal fluctuations frees up space

The advantages of the PAKi voucher system can be seen at tegut… all year round because the number of pallets is regularly affected by dramatic seasonal fluctuations. For instance, if large quantities of goods are delivered and placed in stock before Christmas or Easter, there are hardly any empty pallets available. But this situation changes quickly during the sales. “We always need a vast amount of space for empty pallets after sales promotions,” says Moritz Ziegler. “Now we phone Pooling Partners and they collect the empty pallets and deal with the whole process: returning the pallets and keeping them ready for collection by suppliers or shipping companies. And we always have an overview of our pallet account. Moreover, the system is self-explanatory and very simple to use via the online portal.”

tegut… also appreciates the environmental benefits associated with PAKi Services. The intelligent pallet management system simplifies the exchange procedure and guarantees that load carriers are used more frequently. In addition, the over 10,000 pooling stations remove the need for unnecessary empty trips. This saves time, fuel and money – and considerably reduces CO2 emissions.

Claus Goldbach summarises the switchover process: “Before the system was introduced, all our suppliers were informed about the new choice between exchanging one-for-one pallets on the spot directly or using the PAKi solution. Then we quickly introduced Pooling Partners’ PAKi solution for pallet management in the incoming goods area. We are very happy with how easy the PAKi pallet vouchers are to use. We can certainly envisage extending the partnership and look forward to receiving more intelligent, efficient proposals from Pooling Partners for our food logistics operations.”

High level of acceptance for the Pooling Partners model among shipping companies

As the high levels of acceptance among shipping companies and suppliers show, the company’s efforts have paid off. “The immediate positive response to the voucher has met – and even exceeded – our expectations for the launch,” reveals Klaus Dörr, Sales Director DACH for PAKi Services at Pooling Partners. “We can see that some customers are even using the voucher across borders and ordering euro pallets in Italy, the Netherlands and other countries.”

At the moment, shipping companies still prefer the one-for-one exchange procedure when delivering smaller volumes of goods, while in other areas everything is already being managed via the PAKi voucher. “As this collaboration shows, our solution is particularly effective in the food retail sector, and other companies have expressed a keen interest,” says Christian Kühnhold, CEO of Pooling Partners for PAKi Services. “We simplify our customers’ processes dramatically and ensure that they can rely on punctual collections and the right kind of pallet at all times.”

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Credits: Pooling Partners

Claus Goldbach
Claus Goldbach from tegut… has opted for efficient pallet management.

Schnelle-und-reibungslose-Abwicklung
Fast, trouble-free processing with the PAKi pallet voucher in the incoming goods area at tegut…

Einfache-Online-Eingabe
Simple online data entry and transfer via the customer portal.

Optimale-Prozesse
Perfect processes: Moritz Ziegler from tegut… (right) and Klaus Dörr from PAKi Pooling Partners work closely together.


Report by Christian Kühnhold, CEO of Pooling Partners for PAKi Services, on the current market situation:

Our customers use our services to simplify the pooling of exchangeable load carriers. For us it’s about making best use of the flexibility of the euro pallet exchange pool and making the system more efficient. We coordinate the needs of users in the supply chain across Europe, eliminating costs associated with empty trips while meeting all our customers’ quality requirements.

If everyone involved in the supply chain uses the system responsibly, it is possible to optimise processes and save costs.

A central issue is the sorting of quality grades that takes place in the distribution centres, and the associated processing using the pallet voucher issued by the service providers commissioned by the commercial establishments. If the pallet voucher is transferable to third parties, the open pool becomes flexible. The owner of the voucher is free to decide where to redeem the voucher and with which provider. We are increasing the transferability of the pallet voucher in collaboration with GS1 as well as representatives from industry, commerce and logistics companies. Our aim is for this document, which has been around for years and has a proven track record, to remain transferrable so that everyone involved is free to use it in the most convenient way.

We also take efficiency seriously when it comes to sorting the different quality grades. The aim is to separate large quantities with a minimum of time and effort. Anything else generates costs for other participants in the supply chain. We distance ourselves from the business practices of competitors in the open pool that add unnecessary extra costs to processes.

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Photo: Christian Kühnhold, CEO of Pooling Partners for PAKi Services
Credits: Pooling Partners


About Pooling Partners

Pooling Partners is Europe’s #1 integrated full-service pooler and producer of pallets and boxes.

With a history dating back to 1891, this Dutch family business provides pallet and box pooling services across Europe and is also one of Europe’s largest producers of wooden pallets. It operates three pooling networks in demanding supply chains: IPP Logipal, PAKi Logistics, and PRS Return System.

The IPP Logipal pool is a leading rental provider of pallets and boxes in fast moving consumer goods and industrial supply chains across Europe. Via an extensive service centre network customers rent IPP pool pallets to store and deliver their brands. By deploying its pooling expertise in recovery and refurbishment, IPP Logipal provides its customers with pool pallets when and wherever they need them.

The European PAKi network is the market leader in pool management of exchangeable and standardised load carriers such as euro pallets and box pallets. Customers receive pallets at the right quality where and when they need them and return them wherever and whenever; via a network of 10,000 pooling stations across Europe.

PRS Return System is an efficient and reliable pooling system for users of CP-type pallets in the demanding polymer and chemical sectors across Europe and Turkey. For nearly twenty years it has contributed to sustainability by strongly growing pallet re-use and reducing packaging waste.

Pooling Partners is a long standing and leading exponent of circular economy models, promoting recovery and continual re-use of durable standard pallets and boxes in efficient and sustainable pooling systems. Its factories source from sustainably managed forestry and produce and repair over 20 million pallets and boxes per annum from wood that is PEFCTM or FSC® certified.

The company has an annual turnover of ca. € 300 million and employs around 800 staff.

Christian Kühnhold, CEO of Pooling Partners for PAKi Services
Further information: www.poolingpartners.com.

For further information, please contact:
Pooling Partners | PAKi Logistics GmbH
Séverine Buchholz, Marketing Manager
Thüngenfeld 1
58256 Ennepetal
Germany
Tel. +49 (0) 2333 98 93 155
Fax: + 49 (0) 2333 98 93 777 155
E-mail: s.buchholz@poolingpartners.com