22 WESTERN PALLET
•Historic lumber and core pricing.
•Shortages for major pallet poolers send ag sector scurrying for pallets.
•Severe labor shortages and skyrocketing labor rates.
•Distribution centers hold more pallet stock, release less onto open market.
•Sharp rise for pallet demand, sustained into 2022 (particularly for used pallets)
•Major consolidation trend in the recycled industry hits into high gear.
•Recyclers turn to combos and recycled lumber for material supply.
•More COVID strains and disruptions… Government Regulation Uncertainty!
•Severe nail, supply and transportation shortages.
•Historic inflation.
Product Overview: ERP Software
Editor’s note: ERP was the focus of our December 8 WPA webinar, presented by Craig Bezouidenhout of Pallet Connect. While the following article was written before the webinar, watch for a recording of Craig’s presentation to be available for replay in the near future.
If you are still running your pallet business with Excel spreadsheets, you are not alone. As one leading pallet industry ERP provider noted recently, the spreadsheet remains the biggest competitor for ERP providers in the pallet space. With market penetration still estimated to be less than 50%, according to Alan Miceli of Integrated Data Systems, provider Pallet Track™, the industry has been slower to take advantage of this technology than others.
Things are poised for change, however. The importance of pallet industry ERP was recently underscored by the acquisition of Innovative Data Systems by 48forty Solutions.
While uptake continues to be a work in progress, it just might be time to take a fresh look at whether an ERP system is right for your company. The movement is well underway in other industries. Consider that across small businesses in general, 75% of them use an ERP system, according to one provider.
“Most of the larger companies have some sort of ERP,” said Miceli. “It is becoming more and more of a necessity. Companies are finally realizing that they need to keep track of these things a bit more efficiently than either paper or entering into spreadsheets and things like that.”
“The reality of the current supply chain environment has greatly improved the business case for ERP implementation,” added Kevan Grinwis, Vice President at Automated Machine Systems, Inc., the provider of PalMate™. “As we’ve all seen through the last few years, business cycles are happening much faster and the right software solutions can help by giving managers quick, actionable data that enables them to make better decisions. This, along with labor issues and other factors, makes implementing an ERP a slam dunk for nearly any business.”
Grinwis stressed that software is essentially digital automation, and that companies are looking to check the same boxes in implementing an ERP as they would be when implementing robotics or other automation. “In today’s business environment, we need to reduce redundancy of labor, we need to streamline processes, we need to know our inventory at a moment’s glance, we need to know where our material is, what it costs, when we’ll need more, and where the best place is to get it. The right software can provide all of this and much more.”
What is ERP?
ERP is an acronym for Enterprise Resource Planning. Microsoft describes an ERP system as a software system that helps organizations automate and manage core business processes for optimal performance. ERP software coordinates data flow between a company’s business processes, providing a single source of truth and streamlining operations across the enterprise.
The ERP can be a powerful tool for pallet operators. Starting with the sales order, it can create production and shipping schedules. It can track production costs, inventory, employee time, and production. It also facilitates integration with various accounting programs and supports integration with software for drawing or designing pallets such as PDS.
Another consideration is whether or not you are interested in a cloud-based version, which is currently offered by Pallet Connect, and will be offered in the first quarter of 2023 by PalMate.
Here are five reasons why you should consider investing in an ERP system for your pallet business: