Pallet Reconciliation
You should reconcile your pallet hire invoices each month. A reconciliation is a comparison of your numbers against that of CHEP and/or Loscam.
If you don’t have the inhouse resources then we can provide this service for you. It is very important that you get a monthly reconciliation report. You only need to be off track for a short period to incur pallet loss liabilities.
The following table shows an example of what a pallet reconciliation is made up of:
| Your Pallets | No. Pallets | |
| A. | Physical count as at 28 February 2010 |
3,700 |
| B. | Add pallets others owe to you | 50 |
| C. | Deduct pallets you owe to others | 100 |
| D. | Your Pallet Stocks (A+B-C) | 3,650 |
| Loscam Pallets | ||
| E. | Loscam Invoice Closing Balance as at 28 February 2010 | 4,200 |
| Add uninvoiced movements on to your account | ||
| F. | Transfers On | 700 |
| G. | Corrections/Rejections On | 30 |
| H. | Delayed Transfers On | 800 |
| Deduct uninvoiced movements off your account | ||
| I. | Transfers Off | 900 |
| J. | Corrections/Rejections Off | 20 |
| K. | Delayed Transfers Off | 1,000 |
| L. | Revised Loscam Pallets (E+F+G+H)-(I+J+K) | 3,810 |
| Variance | ||
| M. | Loss or Gain | -160 |
A negative figure indicates a pallet loss.
You can then calculate the financial impact of a pallet loss. Please note the figures used below are for example only. The actual rates may be different.
| Pallets Lost | Daily Hire Rate | Annual Hire Cost |
| 160 | $.06 | $3,504 |
You should also calculate the ongoing costs of lost pallets and how long would it take to cover the compensation cost.
| Pallets Lost | Compensation Rate | Compensation Cost |
| 160 | $30 | $4,800 |
