Smart Pallets: The Way to Go

When it comes to using practical and tough new technology in its supply chain, Imperial Sugar is a forerunner – always looking to bring innovative efficiencies to its operations and benefit customers as well.

Take something as simple as pallets, for example, used for shipping bags of sugar. Seems fairly basic, but it’s more than that.

Imperial Sugar partnered with Intelligent Global Pooling Systems (iGPS) in the summer of 2007 to develop and usher in the sugar industry’s first RFID (radio frequency identification)-tagged, all-plastic pallet to better ship and track the movement of products.

A former chief executive of CHEP International, a leader in pallet and container pooling services, pioneered the use of plastic RFID-enabled pallets. Each pallet carries a unique serial number that can be read via RFID, bar code or alphanumerically. This serial number makes it possible to follow each pallet through the supply chain, reducing administrative costs and facilitating billing reconciliation.

The pallets today are becoming more standard at Imperial Sugar’s refineries. They will be put to good use in the product warehouse at its rebuilt refinery in Port Wentworth, Georgia – slated to reopen this summer.

iGPS plastic pallets offer many benefits over traditional wooden ones. They are 30 percent lighter, recyclable and hence, save trees, lots of trees. The plastic pallets are more accepting of RFID technology, and are adaptable to handle many different kinds of products.

The pallets also benefit Imperial Sugar’s customers as well, said James Gutowsky, purchasing manager for Imperial.

One Imperial Sugar’s largest customers, a major retailer, sees value in plastic pallets, which are more durable, reduce damage to packaged sugar and make a better, greener presentation in stores by reflecting an environmental awareness.

Competitive in price to wooden pallets, iGPS pallets are tougher and require less maintenance. As a result, each plastic pallet will be in service longer and used with greater frequency, reducing the long-term cost to Imperial Sugar and its customers.

Plastic pallets reduce system downtime, as wooden pallets can break during storage and handling. Wooden pallets must be specially treated for shipping across the border to prevent insect infestation. They also must be inspected on incoming deliveries.

“We see them as an opportunity to replace aging wooden platforms and get into something that is new, green and good for us and our customers,” Gutowsky said.

Of the pallets that Imperial Sugar uses today, 30 percent are plastic. With customer response to iGPS pallets promising, Imperial Sugar is committed to converting its inventory to as many of the new pallets as possible.