Perspective 2019

Martin Schrüfer,

Replacement without effort and problems

Container and pallet pooling is a common way for logistics service providers to simplify processes and make handling more cost-effective. materialfluss spoke to pallet manufacturer Falkenhahn and pooling operator PAKi Logistics about market requirements and the outlook for 2019.

(from left) Christian Agasse, CEO PAKi Logistics GmbH and Marcus Falkenhahn, Managing Director Falkenhahn AG © Pooling Partners, Thilo Härdtlein

Two questions for Christian Agasse, CEO PAKi Logistics GmbH

material flow: What requirements do customers have for modern container and pallet pooling in 2018? What are you most frequently asked about?
Christian Agasse: The efficient exchange of standard load carriers such as Euro pallets and pallet cages requires fast and reliable document management, which is one of the reasons why people go to PAKi. As volumes increase, the market expects greater digitization of documents and security of the data collected. PAKi is heavily involved here, already offering the e-voucher for pallets across Europe and will soon be launching the "Driver Drop-off APP" to streamline "pooling in". We have seen a higher demand for Euro pallets and pallet cages this year. We expect higher pressure in the last quarter of 2018 with continued growth in online shopping.

mfl: How will the business develop by the end of the year? Which markets and segments do you want to focus on and what arguments for your products and services will you be using in the race?
Agasse: The way to satisfy the market in the next three months will be the availability of load carriers and the resources to respond efficiently to the expected peak loads. The size of our European network in 23 countries will help to alleviate some bottlenecks. We also expect that the upcoming launch of our e-voucher with the
will be met with great interest and business inquiries from transport companies. We are seeing a shortage of trucks and drivers across Europe. As chargers and forwarders focus on using all available trucks to transport goods, they will likely turn to pooling companies like PAKi to relocate the empty pallets and containers.

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Three questions for Marcus Falkenhahn, Managing Director of Falkenhahn AG

material flow: What requirements will customers have for modern container and pallet pooling in 2018?
and pallets?
Marcus Falkenhahn: Our customers are very cost-conscious. It's not just about the pure purchase prices, but also about the cost of the entire procurement and handling of pallets - in other words, the costs over the entire service life. Procurement, use and support from the manufacturer all play a role in these "life cycle costs". All Euro pallets must be interchangeable at the ramp without any problems or effort, provided they comply with the applicable quality regulations.

mfl: What are you most frequently asked about? How do you argue?
Falkenhahn: We see four questions. Firstly, the one about proof of quality. This is where we argue: Our testing measures are consistent and complete. It has been proven that new World pallets comply with the GS1 type description. The corresponding certificates are available and are published on our website. TÜV Rheinland tests World Euro pallets for design, quality and stability. TÜV Thüringen carries out regular, neutral quality controls. Falkenhahn itself carries out 100% internal monitoring with continuous automatic checks throughout the entire production process and guarantees 100% quality for MFA capability of the pallets. Finally, ESC-Cert certifies the company's own QM system DIN ISO 9001:2008 for the production process and distribution of World Euro pallets, and then there is the question of prices. Falkenhahn AG has repeatedly demonstrated its price leadership in the past. To ensure that this remains the case, the efficiency of all in-house processes is regularly checked and optimized. Exchangeability at the ramp is another frequently asked question. This is where we come in: To improve the efficiency of the logistics chain, GS1, together with industry, trade and services, created the type description and quality classification for Euro pallets: As proven, new World pallets comply with the GS1 type description, while used World pallets, like all other pallets as well, are exchangeable in the open pool according to GS1 quality classification. All Euro pallets that comply with GS1 asset type 99993 are freely usable and interchangeable, regardless of their brand. Conditions for pallet exchange that go beyond this contradict the spirit and letter of the GS1 regulation adopted by mutual agreement. They hinder free competition and reduce the efficiency of pallet handling to the detriment of our own interests. Major customers of our company have recognized their opportunities. They have reached agreements with logistics partners and retail customers on the brand-independent exchange of pallets. Of course, the GS1 regulations remain the central basis. This solution significantly reduces pallet handling costs. Fourthly, the issue of security of supply is also important for subsequent deliveries. With a delivery capacity of up to ten million pallets per year and large buffer stocks, Falkenhahn AG is a partner that can also quickly cover peaks in demand.

mfl: How will the business develop by the end of the year? Which markets and segments do you want to focus on?
Falkenhahn: Our business is closely linked to the general economic trend, and we also feel the effects of fluctuations in our customers' sales. Accordingly, we strive to serve customers in a broad spectrum of sectors.
Martin Schrüfer

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