Delayed Transfers
Under normal circumstances the transfer of hire takes place when the pallets move from one trading partner to another. In this case the Movement Date and the Effective Date are the same.
It would simplify pallet control if this was how all pallet hire transfers were processed but unfortunately this is not the case and we have added complexity because of delayed transfers.
Major retailers apply delays to pallet transfers for pallets they receive. This has led to transport companies applying delays to the companies for pallets they pick up for delivery to retailers. We now have a situation where companies make up delayed transfer rules and apply them as best they can. Confusion reigns and every month there are hundreds, if not thousands, of date corrections made. This all costs you money.
Its all about money
It could be argued that some delay is justified as retailers incur costs in dehiring thousands of pallets every month. If some costs are justified then a better system would be to have them built into the price of the product.
These delayed transfer costs should not be part of a pallet transfer transaction.
CHEP and Loscam invoices show delayed transfer information in slightly different ways so their customers often have difficulty in working out what is happening with their delayed transfer costs.
Somehow companies need to quantify these costs so that they can take action to minimise them. If a transport company picks up from a manufacturer for delivery to multiple destinations then this can be difficult, e.g. Coles apply 33 days delay for ambient freight whereas Woolworths apply 30 days.
Contact us if you want to discuss how to reduce your delayed transfer costs.
