§1Count pallets by flow, not by invoice
Start from shipments, not purchase orders. For each outbound lane, multiply loads per month by pallets per load. Add internal uses (storage, work-in-progress, returns), then subtract pallets you get back and reuse. The result is net pallets consumed per month for that flow.
Do this per footprint and per grade. A plant that ships 48×40 grade A to retail and 42×42 to a chemical customer has two programs, with different suppliers, prices and risks.
| Flow | Loads / month | Pallets / load | Returned | Net / month | Spec |
|---|---|---|---|---|---|
| Retail DC lanes | e.g. 120 | e.g. 26 | 0 | 3,120 | 48×40 #1 |
| Chemical customer | e.g. 15 | e.g. 20 | 0 | 300 | 42×42 new |
| Warehouse storage | n/a | n/a | n/a | e.g. 150 | 48×40 #2 |
The example figures are placeholders; use your own shipping data. The annual demand calculator runs the same arithmetic.
§2List what each receiver accepts
Pull every customer routing guide that mentions pallets. Note the footprint, grade, entry, height and weight limits, and whether pooled pallets are wanted or refused. Walmart's WFS guide and Kroger's procurement guidelines, for example, take different positions on pooled pallets. Where receivers differ, you may need two pallet types on the same footprint.
§3Record where it hurts today
Late deliveries that stopped a line, rejected pallets, chargebacks from receivers, injuries from broken boards, and price jumps all point to what the next contract must fix. Put a number on each: line-down hours, chargeback dollars, reject rate. Those numbers set the service levels in the RFQ.
§4What the analysis should produce
- Pallets per month for each spec, with seasonal peaks.
- Delivery points with dock hours and storage space for pallet stock.
- A short list of receiver requirements by lane.
- Current prices, suppliers and contract end dates.
- Problems the next contract must fix, with costs.
With that in hand, write the specs (start from the spec sheets) and move on to running the RFQ.