Pioneer in RFID Pallet Rental in Asia

LHT has implemented the RFID (Radio Frequency Identification) System along with our ECR pallet rental scheme. The movement of each RFID tagged pallet can be traced at every stage of storage and transport. Verification process ensures that goods are accurately loaded into trucks and traced accordingly. This system greatly enhances traceability of goods, enabling increased efficiency and flexibility in the logistics operations. Costs are reduced, and resources are optimized. After numerous research and development and trails conducted, LHT has successfully achieved a 100 percent read rate for the ECR/RFID pallets passing through in RFID gantry.

Pallet Rental Program

The Fast Moving Consumers Goods (FMCG) manufacturers used to buy low-quality pallets to deliver their products to the distribution centre (DC). The palletised products will be put on a slave pallet and placed in the warehouse storage rack to await delivery and distribution to the retail outlets. At the DC, once the palletised loaded products were removed from the storage racks, the slave pallets will be re-used but the ‘one-way pallet’ will be discarded completely upon offloading of goods. Then the goods will be put into a specially-designed roll-container constructed with steel bar frame with attached roller at the bottom. The roll container was said to be robust, easy to handle and maintain. Its purpose is to conveniently push goods in and out of the supermarket aisles as well as to easily stock goods onto the retail outlets’ shelves.

In the pick and pack process at DC, the Just In Time (JIT) concept is applied for a specific grocery such as bread, rice and dairy products. Cross-docking is applied for those manufactured goods that will not be stored in DC. It is only applicable to products with short lead times and for orders of large quantities.

In October 1999, the recommended pallet standard based on ISO 6780 which was endorsed by ECR Asia and ECR Europe was imposed for the FMCG industry.  With the switch from low quality pallets to leasing of standard heavy-duty ECR pallets (1000 kg load), there was no need for huge investments as it involved a hiring system. FMCG manufacturers usually stock large inventory of pallets a few months before the festive seasons to meet the consumers’ needs and often after the festive seasons to return access pallets to the pallet leasing company. This saw significant results in reducing inventory and cost savings compared to the purchase of large quantities of pallets. The advantage is that it does not take up large storage space. This way you only need to order more if you will be requiring more pallets or if not, you just need to de-hire it. This will mean further cost savings for purchasing pallets and repairs.

A pallet rental program can mean better dock utilization for suppliers which can vastly improve their turnaround time. In addition, standardisation simplifies business process, enhances business practices and creates greater efficiencies and better effectiveness. With many variables to be taken into account, it provides the supply chain with no capital outlay thereby increasing operational efficiencies and further cost savings.