22 WESTERN PALLET
automatically into it. And that saved us a tremendous amount of forklift driver time. It also eliminated traffic, so it was a safety improvement as well. Payback was achieved in less than a year.
A more recent investment in automation for Valley Pallet has been automated board stackers. The investment allowed Valley Pallet to repurpose labor from stacking to other duties. It achieved a payback in less than 6 months.
Rodney Wadel and Jorge Eroza were both involved in automation projects to improve their pallet recycling operations. Wadel identified stackers and destackers as “low hanging fruit” for investment. “They probably achieved payback faster than anything else we’ve ever done in the pallet industry,” he said. “Sorting all of the pallets before they get to the repair station offered a tremendous payback really fast.”
San Fernando Valley Pallet enjoyed a rapid payback from its investment in sorting automation. “We implemented a sorting system because the stacking was too labor-intensive,” he said. The investment in the system was $400,000, but payback was achieved in a year. Fewer people were required to do the work, while handling for forklifts became simpler. “All stacks at the end of the line are ready to go,” he explained.
Automation Preparedness for Smaller Companies
While the panelists represented larger players in the industry, they were quick to point out that they themselves started out as small operations, and that there are positive steps that smaller pallet companies can also take to improve efficiency.
“We started out in the back of an Oldsmobile station wagon,” Shean said. “It was hammers and nails, fix them and sell them, and that’s really how we got started. So all of us have been through that process.” Shean said his suggestion is very simple. It involves looking at your operation and studying the flow.
“Look at how it comes in, and how it goes out,” he said. “And then look at trying to improve that flow, trying to put work stations in the right locations, trying to get a smooth flow from the in to the out without automation.”
After efforts to improve production, Valley Pallet turned its emphasis to plant organization. "For us, there was a real emphasis on organization, on housekeeping, on inventory storing and stacking,” Shean said. “All of those things are very, very important. When you are able to improve those things, the light
And while he came from an automation background prior to getting involved in the pallet industry, he only made the decision to invest in automation four or five years ago because he came to realize he would always remain small unless he invested in automation.
If at First You Don't Succeed
A common theme among participants was to be open minded about trying new things, and not everything you will try will necessarily work. One panel member shared a story about a $75,000 investment in a stacker that ultimately did not work in his operation because of space constraints.
"Don’t be afraid to try," said Geffros. "A lot of great innovations going on, all around us. Experience is the best teacher, and out of failure often come the best results. For small operations, look at small improvements with big returns, but don’t be afraid to screw up. "