East China 3PL E-commerce Hub: Standardizing Pallets to Boost Throughput
Background
The customer is a leading third-party logistics (3PL) provider in East China serving FMCG and e-commerce brands. The site handles 28,000–35,000 outbound orders per day with multi-temperature zones and wave picking. Pallets are used for inbound staging, replenishment, and inter-zone transfer.
Pain Points
- Mixed pallet sizes from different clients reduced slot utilization and slowed forklift cycles.
- Racking safety risks caused by warped wooden pallets with insufficient racking load capacity.
- High damage and replacement rates—wooden pallet scrap averaged 6%–8% per month.
Solution
1. Standardized pallet specification
- Unified to 1200×1000 mm 3-runner pallets with four-way entry.
- Steel-reinforced runners to support racking loads.
- Color coding for zone management (ambient vs. temperature-controlled areas).
2. Racking-load validation
- Verified beam spacing and shelf load limits with the racking supplier.
- Matched pallet racking load to a safe working range of 800–1000 kg.
- Built a “pallet–rack–load” compatibility checklist for inbound approval.
3. Operational adjustments
- Only standard pallets allowed in racked areas after inbound QC.
- Established a pallet circulation buffer to improve transfer efficiency.
- Forklift training focused on safe racking practices and load limits.
Results (after 90 days)
- 70% reduction in pallet breakage, scrap rate down to under 2% per month.
- 9% increase in racking utilization, adding roughly 800 pallet locations in the same footprint.
- 12% faster outbound operations thanks to smoother replenishment and inter-zone flow.
- No further rack safety incidents related to pallet deformation or beam deflection.
Lessons for peers
- Pallet standardization is the foundation of 3PL efficiency. Automation fails without it.
- Racking load is a system parameter, not just a product spec. Validate against beam spacing and shelf limits.
- Color zoning and circulation buffers improve control in high-frequency e-commerce warehouses.
For multi-client, multi-temperature operations, starting with pallet standardization and racking-load validation delivers quick, measurable gains with manageable investment.
