Abstract

Purpose – The study aims to investigate the possibilities of improving companies’ logistical processes and reduce costs regarding pallet handling with the help of traceability. Two questions were designed to answer the study’s purpose: 

[1]  What impact does lack of traceability have on external pallet flows?  

[2]  How should traceability of external pallet flows be handled? 

Method – The purpose of the study was fulfilled with the help of a literature review and a case study. Theoretical framework was created with a comprehensive literature study while empirical collection consisted of interview and document studies. The empirical data were analysed to present the findings of the study. 

Findings – The case study identifies several factors related to a company’s lack of traceability such as uneven and unpredictable supply chains, costs related to logistical processes and manual registration. Uneven and unpredictable logistical flows affect companies’ production planning in a negative way. To compensate for pallet shortages in production, companies have established a safety stock. A better overview of pallet can be achieved with better traceability. External pallet flows should be managed through the implementation of Radio Frequency Identification (RFID) and a more comprehensive system support. 

Implications – The study has shown that traceability of pallets improves several aspects within the company. With the help of identification technology and system support, companies can streamline their logistical processes and reduce logistics-related costs. 

Limitations – The limitations regarding the study were the involvement of only one company. The usage of several companies would have given the study a more diversifiable outlook on the pallet handling. The study recommendation has not been applied which could have confirmed our findings. It has not been possible due to the pandemic to visit and observe the company on site.

Keywords – Traceability, pallet handling, identification technology, enterprise system support, automated processing, return logistics.