Tracking packing materials: cardboard, film, pallets

Every box and every roll of packing tape seems cheap, so nobody counts them. But with many shipments the monthly total becomes noticeable. A conditional calculation: 150 shipments a day, 2 boxes each, a box at 1,500 UZS, comes to 450,000 UZS a day and about 9.9 million UZS over 22 working days. That is cardboard alone; tape, film and filler are extra. If a tenth of consumption is wasted, several million UZS a year simply turns into rubbish. The curious part is that nobody can usually show where that money went.

What gets counted

The list of what to track is short, but it has to be written down:

• cardboard and boxes, separately by size;
• adhesive tape, stretch film, strapping;
• filler: paper, bubble wrap, foam;
• labels, stickers, marks such as "fragile";
• pallets: your own, hired or exchange, and those of a supplier or customer;
• reusable plastic crates and containers.

Each needs its own place, a unit of measure (piece, roll, kg) and an owner. To start, simply record receipts and issues for a whole month: that data lets you set the consumption norm accurately.

A consumption norm

Without a norm, excess consumption is invisible. For each type of shipment write a simple rule: which item goes in which box, how many rolls of tape are used, how many turns of film go round a pallet. Then at month end calculate one figure: consumption per shipment = monthly use ÷ number of shipments. If it rises, look for the cause: a box that is too large for a small item, film wound on as the packer pleases, damaged boxes replaced again and again. Choosing the right box size saves twice: less cardboard and less filler.

Pallets

The pallet is the warehouse asset that goes missing most often. Pallets come in three kinds: your own, hired or exchange, and other people's. Account for each kind separately.

• At receiving and dispatch, pallets are counted too and written on the document.
• If you exchange pallets with a customer or a driver, there must be a clear agreement and a return log.
• Mark your own pallets with paint or a number.
• Set broken pallets apart and decide whether to repair or scrap them.
• Empty pallets stay in one place, neatly stacked.
• set a minimum stock so that picking and dispatch areas never run short of pallets.

A conditional example. At the start of the month the records showed 400 pallets. During the month 60 went to customers and 45 came back. At month end the records show 385, while 370 stand in the warehouse. The gap is 15 pallets: find out where they are, or such losses become a monthly habit.

Storage and issue

Materials are kept in a locked place run by one responsible person. At the start of the shift the needed quantity is issued on a request, and the rest stays in the store. Once a week the balance is counted and compared with consumption. When the responsible person changes, the balance is handed over by report. Set a reorder point: when stock falls below four or five days of use, a new order is placed. For instance, if 300 boxes a day go on average and delivery takes five days, order when stock drops below 1,500 boxes, plus a small safety buffer.

Reuse and waste

Clean, intact cardboard from incoming goods can be reused, but only if it is undamaged and old labels are covered. For food and fragile goods use new boxes only. Waste paper and film can be collected and handed in: even a small sum is better than nothing, but record the quantity and the amount.

Common mistakes

• Cardboard and tape lie "unaccounted" by the warehouse door and everyone takes what they like.
• Pallets are not counted in shipments.
• There are too many box sizes and nobody knows which to use when.
• Waste cardboard is sold but the money and quantity are not recorded.

Conclusion

Packing materials look like a minor expense, yet they too need records and order. During a warehouse audit, SkladKontrol looks at such "small" flows as well, and a fixed-asset count can list your own pallets and containers.