In the competitive world of pallet manufacturing, two companies, North Star Pallets in Edmonton, Alberta, and Global Group in Elkhart, Indiana, have made notable strides by embracing innovative technology. These advancements have streamlined operations, improved accountability, and ultimately transformed the way they manage inventory, manufacturing processes, and customer service.

North Star Pallets: Accountability Through Technology

David Luscombe, the owner of North Star Pallets, has seen almost every scenario of mismanaged deliveries throughout his 17 years in the industry. “It’s not uncommon to be over-shipped, under-shipped,” he said, highlighting the complexities of managing supply chains. To combat such challenges, Luscombe implemented a robust barcode inventory management system from Innovative Data Systems (IDS) two and a half years ago. This decision marked a significant turning point for his business, allowing for real-time accountability across all levels, from suppliers to employees.

Advanced System Implementation

The wireless system from IDS was a critical feature for Luscombe. He wanted immediate access to information, avoiding delays in data collection until the end of the day. “I’m a techno-junkie,” he explained, emphasizing his dedication to leveraging high-tech solutions for operational benefits.

Employing approximately 30 employees, North Star Pallets specializes in the production of both hardwood and softwood pallets. The company sources aspen cants from local sawmills for hardwood pallets and uses heat-treated spruce, pine, and fir lumber to create softwood products. The innovative barcode system implemented for operations begins with issuing purchase orders to suppliers. Employees use portable Symbol® terminals to match incoming loads with order numbers, enabling real-time tracking of materials.

After pallet assembly, a similar process allows machinery operators to close production runs effortlessly while documenting critical data, such as hours worked and the number and size of pallets produced. “Every production run gets a code,” said Luscombe, ensuring that any remainder entering inventory receives an updated code.

Embracing Automation and Employee Training

The company also emphasizes the recycling of pallets, integrating a conveyor system for incoming pallets needing repairs. This system is further enhanced by the IDS Pallet Track®, which allows for individual pallet tagging and tracking, streamlining costs, inventory adjustments, and piece rates. “It’s no more time-consuming than making a crayon mark, but provides much more information,” Luscombe noted.

Despite initial concerns regarding the transition to a computerized tracking system, employees adapted quickly. After just 10 days of usability, workers were well-versed in the new technology, appreciating the increase in operational efficiency.

For customer engagement, Luscombe, along with two additional employees, utilizes IDS’s Click-Draw® software to create custom pallet designs, which has proven useful during consultations with clients. The partnership with IDS has been fruitful, with innovative features tailored to meet specific needs within the pallet industry.

Global Group: A Comprehensive Approach to Operations

Founded six years ago, Global Group in Elkhart has established itself as a vertically integrated pallet manufacturer, managing all aspects from raw materials to finished products. Vice President Jay Shah and his brother Andrew oversee a versatile operation that produces both new and recycled pallets. With over 125 employees and an extensive fleet of 10 trucks, the company handles remarkable volumes, including cutting more than 60,000 board feet of wood daily.

Implementing Technology for Growth

The focus on technology at Global Group has been pivotal in managing rapid expansion. To streamline operations and reduce costs, they implemented IDS technology across their facilities. “I have a complete wireless system from IDS,” Jay stated, which includes an array of hand-punch and palm verification systems, along with a new touch monitor for easy data input.

This investment is crucial for analyzing production efficiencies, particularly in their cut-up operations. The company operates multiple saws and processing equipment to enhance output while maintaining quality standards suitable for their diverse clientele, including customers in the pharmaceutical, food, automotive, and steel sectors.

Future Plans and Environmental Commitment

As part of ongoing improvements, Global Group has recently adopted a Kiln-Direct.com pallet heat treating system to treat truckloads of pallets efficiently and is in the process of expanding its pallet recycling capabilities. A new 130,000-square-foot repair facility is set to open soon, where an automated pallet repair line will be installed to enhance operations further.

Jay believes investing in pallet recycling is essential for the future. “Reverse logistics is the future, and as professional pallet manufacturers, we must stay proactive to stay ahead of the curve,” he noted. This proactive approach also includes the introduction of a Rotochopper machine to grind and color wood scrap for producing mulch.

Global Group emphasizes providing comprehensive packaging solutions for its customers, aligning with its operational aspirations. To maintain high standards, the company collaborates with engineers from Purdue University and Michigan State University for testing and research initiatives.

Successful Technology Integration

The adoption of IDS tracking solutions has streamlined operations. Each bundle of lumber received at Global Group gets a barcode, which facilitates inventory tracking and yield calculations. Jay remarked, “We’re bar-coding all material we receive… it helps to check if there’s any shrinkage and calculate our yield on saw runs.”

The implementation of touch monitor systems not only enhances operational accuracy but also provides valuable insights for management. With these systems in place, Global Group can efficiently monitor production metrics without relying on paperwork, leading to improved inventory management and accountability.

Conclusion

Both North Star Pallets and Global Group showcase how embracing advanced technology in the pallet manufacturing industry can lead to significant efficiency gains and improved accountability. By investing in innovative systems, these companies are not only optimizing their operations but also reinforcing their commitment to meeting customer needs in an ever-evolving marketplace.