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NBWA Associate Member Rehrig Pacific Company discusses in their Associate Member Viewpoint how smarter pallet management can optimize daily operations for beer distributors.

By Clay Kobernick, Vice President of Category Management, Rehrig Pacific Company

 

In the beverage distribution industry, efficiency and safety are the biggest priorities in daily operations. Warehouse teams are constantly working to optimize space, handle heavy loads, and ensure the safety of workers. While much attention is given to technology, fleet management and product logistics, one crucial aspect often overlooked is pallet management.

Pallets are the backbone of warehouse operations, serving as the primary method for storing, moving and distributing products. To optimize their daily operations and enhance workplace safety, many warehouses are shifting toward smarter pallet management strategies.

The Challenges of Traditional Pallet Handling

Many distribution centers still rely on traditional pallet handling methods that involve significant manual labor. While this may have been standard practice for years, it represents several challenges that can impact both operational efficiency and workplace safety.

1. Risk of Worker Injuries if Improperly Handled

Distribution center workers frequently lift, push and move heavy wooden or plastic pallets. If performed in an improper manner, the repetitive nature of these tasks can increase the likelihood of back injuries, hand lacerations and workplace safety incidents.

According to OSHA, improper manual handling is responsible for a significant percentage of workplace injuries in warehouses. Injuries caused by improper handling not only impact the health and safety of employees but also contribute to increased workers’ compensation claims, lost productivity and higher turnover rates.

2. Inefficient Use of Warehouse Space

Storage space is one of the most valuable assets in a distribution center. However, when pallets are not managed properly, they can take up excessive space, limiting storage capacity and creating bottlenecks in warehouse operations. Stacked pallets can obstruct walkways, interfere with equipment movement and reduce overall workflow efficiency.

Traditional pallet storage methods often involve stacking pallets in random or inefficient configurations, making it difficult to retrieve them quickly when needed. This inefficiency can slow downloading and unloading processes, leading to unnecessary delays and added labor costs.

3. Damage to Pallets and Products

Mishandling pallets whether due to forklifts, manual movement or improper storage can lead to significant damage. Broken pallets can cause product loss, contamination risks and safety hazards. Damaged pallets can also result in unstable stacking, increasing the risk of product falling and causing even greater losses.

When products are transferred from one pallet to another manually, there is also a higher likelihood of damage. Bottled and canned beverages are vulnerable to denting, breakage and leaks when handled improperly. Reducing pallet damage directly translates to cost savings and fewer product losses.

4. Labor Inefficiencies and Increased Costs

Time is money in warehouse operations, and inefficient pallet handling slows down productivity. When workers have to manually sort, move or repair pallets, it takes time away from more value-added tasks. Additionally, excessive labor costs associated with inefficient pallet management can erode profit margins.

As labor shortages continue to affect the beverage distribution industry, warehouses must find ways to maximize efficiency without relying on excessive manual work.

Automating or optimizing pallet handling processes can significantly improve productivity while reducing the physical burden on employees.

A Smarter Approach to Pallet Management

To address these challenges, distributors are implementing more strategic pallet management solutions designed to enhance efficiency and safety. These improvements focus on reducing reliance on manual handling, optimizing storage and integrating technology where possible.

1. Optimizing Warehouse Space and Pallet Storage

One of the first steps in improving pallet management is reevaluating how pallets are stored. Using a structured approach to pallet storage such as dedicated pallet racking systems or automated stacking solutions helps free up valuable warehouse space.

Modern warehouse management systems (WMS) can track and organize pallet inventory efficiently, ensuring that pallets are stored systematically rather than haphazardly. Implementing these solutions allows warehouses to maximize available space while reducing congestion and potential hazards.

2. Reducing or Eliminating Manual Pallet Handling

Many distributors are turning to automation and material handling equipment to reduce or eliminate the need for manual pallet handling. Some of the most effective solutions include:

• Pallet dispensers that automatically separate and distribute pallets, reducing the need for workers to manually lift and move them.
• Conveyor systems that move pallets efficiently between different areas of the warehouse without manual intervention.
• Pallet inverters whose operation is not as efficient as the Pallet Dispensers, but which allow for quick transfer of product between pallets without the need for physical lifting.
• Automated guided vehicles (AGVs) that transport pallets within the warehouse autonomously, reducing forklift traffic and manual handling.

By integrating these technologies, distributors can reduce the risk of injuries from improper handling and create a more efficient environment.

3. Minimizing Pallet and Product Damage

Proper pallet handling procedures, including automated sorting and stacking systems, help minimize damage to both pallets and the products they carry. Investing in high-quality pallets that are designed for durability can also reduce replacement costs and improve operational reliability.

Warehouses can implement best practices such as:

• Routine pallet inspections to identify and remove damaged pallets before they cause further issues.
• Standardized handling procedures to ensure consistency and reduce damage during product transfers.
• Protective packaging techniques and technology to minimize impact-related damage during handling.

When products arrive at retailers in good condition, it reduces the likelihood of rejected shipments and additional handling costs.

4. Increasing Efficiency in Product Transfers

One of the most time-consuming tasks in warehouse operations is moving product from pallet to pallet, a process often required when switching between different types of pallets (e.g., from warehouse pallets to retail-ready pallets).

Pallet transfer systems, including automated pallet exchangers, can drastically speed up this process. These systems:

• Reduce labor time and personnel required for manual transfers. A Pallet exchanger can drastically reduce 3 to 4 times the resources needed to perform this operation.
• Minimize the risk of product damage.
• Improve workflow efficiency, allowing more orders to be processed in less time.

By streamlining this aspect of warehouse operations, distributors can reduce costs while maintaining higher productivity levels.

The Future of Pallet Management in Beverage Distribution

As the beverage industry continues to evolve, the need for more efficient pallet management will only grow. With rising labor costs, increased demand for faster order fulfillment and a focus on workplace safety, automation and smarter storage solutions are becoming key priorities for distributors.

Investing in better pallet management isn’t just about improving warehouse operations, it’s about protecting employees, reducing waste, and enhancing overall business performance. By implementing these strategies, beverage distributors can stay ahead of industry challenges while optimizing their bottom line.

Distributors who prioritize pallet management today will be better positioned to meet growing demand, reduce operational risks and create a safer, more efficient workplace for their teams.

About the Author

Clay Kobernick is the Vice President of Category Management at Rehrig Pacific Company, where he drives innovation within Rehrig’s delivery solutions. He collaborates with industry leaders to explore how cutting-edge material handling solutions and AI technology can optimize warehouse-to-store delivery.