NEW CUMBERLAND, Pa. –
The Defense Logistics Agency Distribution Susquehanna, Pennsylvania, Pallet Reclamation Team has been awarded the Paul D. Oliver Packaging Innovation Excellence award for their successful cost savings initiatives.
The dedicated team of individuals from DDSP includes Tim Frey, base supply supervisor, Lisa Schirmer, financial management, Gary Gift, box shop supervisor and Gregory Wilhide, packaging specialist. The team identified a cost point that could be turned into cost savings. Through analysis and initiative implementation the team found a way to save $977,000 annually for DDSP.
The Pallet Reclamation Team noticed that outbound shipments of small parcel packages were being sent out on commercial carriers by use of winged pallets, a requirement for Defense Department customer shipping, but not required for small parcel shipments. The use of winged pallets in this instance was costing, on average, $4,000 per day.
Meanwhile, flush pallets from routine shipments went straight to recycling for non-conformance to Defense Department shipping requirements.
Identifying that not all outbound shipments needed the use of winged pallets, the pallet reclamation team devised and implemented a plan to reclaim and re-use flush pallets from the various warehouse locations on the DDSP installation. In total they designated 23 strategically placed areas for pallets to be collected.
Through proper use of signage, training and dedicated staff resources, the team returned well over 10,000 pallets back into circulation and use. In addition, pallets that are slightly damaged are now repaired utilizing available in house equipment and personnel, furthering the cost savings.
The cost savings for DDSP, the largest warehousing and distribution center in DOD, was so immense they sought to spread the potential with other sites and disseminated information and details to DLA Distribution San Joaquin, California, the second largest warehousing site in DOD.
Within only six months of implementation DDSC reported an initial savings of over $500,000.
The pallet reclamation team’s insight, planning and execution resulted in tremendous savings for the taxpayer and has potential to grow exponentially as the program possibly begins to extend to all 24 distribution centers worldwide. The efforts of the pallet reclamation team reflect highly upon themselves, their dedication and their support to our nation’s warfighters.