1. PALLET-LESS STORAGE AND HANDLING SYSTEM
Eliminate reliance on wooden pallets and
increase storage
2. This is a solution combining
existing ideas and technology
to eliminate reliance on
wooden pallets used in the
warehouse. This is a rethink
of existing procedures that
reduces the use of valuable
space for storage of pallets
and unnecessary handling of
pallets. Results: Increased
storage potential of 84,000
storage positions across
employed operations, greater
flexibility, increased
productivity, and realized
sustainable process.
3. IKEA new palletless decking system completely eliminates the need
for wooden pallets throughout its network of 31 distributions centers
worldwide.The system will save the furniture retailer tens of millions
of dollars in pallet costs.
Designed by staff at IKEA‟s 1.5 million square foot distribution center
in Savannah, Georgia, the new system allows product that is
shipped on plastic and cardboard slipsheets with one-inch „feet‟ to
be stored on modified storage racks which allow access by
traditional forklifts.
The system will accomplish IKEA founder Ingvar Kamprad‟s stated
goal of eliminating the use of wooden pallets in all IKEA
warehouses.
4. Not only are the slipsheets recyclable, but they‟re provided by
IKEA‟s suppliers at a cost ranging from $1 to $3 each, as opposed to
the $17.50 for Euro pallets (800mm x 1200mm) and $24 for longer
standard IKEA pallets (800mm x 2200mm). IKEA gains a further
benefit by not having to transport heavy and bulky wood pallets on
return trips from the DC.
The $2.4 million investment to kit out the Savannah distribution
center has a return on investment in under a year given the DC
spent $3.4 million last year on wooden pallets.
“We haven‟t bought a pallet for this facility since the system went in,”
says DC manager Ed Morris, who led the project. “It has been
positive in all aspects so far. We‟ve experienced lower damage, and
while picking and putaway are about the same, there are significant
time-savings in receiving and shipping.”