The Role of a Carrier’s Senior Management
Get the pallet control message across
Many of the problems associated with a carrier’s pallet accounts are beyond the control of the pallet controller but it is not beyond the control of the carrier’s senior management. So when we list the key factors in preventing pallet loss we have to put the actions of senior management first.
Key factors in minimising pallet loss for a carrier
- Ensure that the pallet control function is adequately resourced.
- Support your pallet controller and don’t let the rest of the zoo run riot.
- Make sure that operations staff understand that pallets are their responsibility. They are constantly under pressure so the pallet message needs to be loud and clear.
- Insist on a monthly reconciliation report and take steps to understand what it means. It’s a black art practiced by wizards, witches and warlocks so its not normally understood by mere mortals.
- Establish Key Performance Indicators (KPIs) and watch monthly trends, e.g. is your invoice balance increasing.
- Make sure pallet costs are covered. Keep your business development people under control – they need to make sure that pallets are not forgotten or given away.
- Have a written policy for pallets. Get your delayed transfer costs covered and don’t loan pallets to anyone.
- Have trained debriefers checking drivers returned documentation.
- Get an independent annual audit done. Pallets can have a significant financial impact on the bottom line so keep an eye on them.
- If you have lost pallets then have a good, hard go at finding them but then cut your losses and pay compensation for them. Many companies keep on paying for years and end up paying the compensation cost many times. Pay compensation each month if you have to but it’s best to take action.