The partnership between United Glass & Demes Logistics is an example of the benefits that can be achieved when packaging logistics is fully outsourced. Over 3 years ago, UG was running its own pallet pool which consisted of 560,000 wooden pallets. Although the operation was smooth and efficient, the company wanted to find ways of creating greater efficiency as well as costs savings. In 2000, UG invited Demes to work with them to audit the supply chain. Together they identified that, with an average daily demand of around 3500 pallets, the major scope for efficiency lay in improving the logistics behind pallet movements to ensure a continuous, systematic recycling of pallets from one destination to another. Sophisticated IT systems were deployed to enable UG to reduce the size of the pallet pool, resulting almost immediately in substantial cost reductions.
