Client Situation

The customer came to SDI looking for help with both an eyesore and health hazard that had developed at their facility. To support their manufacturing of specialty textiles, the company imported a tremendous amount of yarn& that was shipped on wooden pallets and accumulated at a rate of 600-800 a week. By the time the problem was brought to SDI, access to many of the docks and doors was blocked.

The Challenge

SDI was challenged with finding a way to eliminate the stockpile of pallets, and then prevent their accumulating in the future.

SDI Solution

SDI’s site personnel attacked the problem in two steps. The first objective was to eliminate the already existing stockpile of pallets by whatever means possible. Next, they would implement a plan that would prevent future buildup.

SDI worked with their National Supplier, who offered to haul away several truckloads of pallets. They also looked to several other SDI sites in the surrounding area that identified a need for pallets. A local pallet dealer agreed to place a trailer on site so the pallets could be moved directly into storage, eliminating the double move and the varmint problems created. As the storage trailer was filled, the supplier hauled the load away and the pallets were turned into mulch.

Results

The initial stockpile of pallets was removed at no charge to the customer, saving them in excess of $10,000 in removal costs. SDI also received accolades from the ISA 14002 auditor for reducing waste, which was an important initiative for the customer.

While the storage trailer addressed the future buildup of pallets, there was a cost to the customer for this service. As a continuing effort on the project, the SDI personnel worked with the site’s corrugated supplier, who offered to place a trailer on site at no cost to the customer, saving them more than $18,000 annually.

SDI continued researching options and found willing buyers for the pallets, turning the program into a revenue-generating one. Where the company once spent in excess of $68,000 a year on pallet removal, they are now generating annual revenues of $25,000.