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Loading pallets as a service

Encore runs a leasing service for loading pallets, where pallets are repaired if necessary. Thanks to the service, the usage rate of pallets improves and no natural resources need to be used for producing new ones at the same rate as before.

Photo: Sitra

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Problem

A large share of grocery store products is transported to shops using loading pallets. The material used for pallets often goes to waste, when broken pallets are sent away to be burned instead of repaired. During peak periods, it is difficult for companies to obtain enough pallets.

Solution: loading pallets as a service

Encore provides its customers with loading pallets as a service. Unneeded pallets are brought back to Encore’s pallet centre from all over Finland. There they are inspected, sorted using an automatic line with machine sight and repaired, if necessary. The efficient circulation of pallets reduces the need for new ones. The company ensures that the service can also provide enough pallets during peak periods.

The life cycle of pallets going through Encore is longer than that of other pallets and their usage rate is higher. Since Encore services its pallets actively, within a year, the use of 50 Encore pallets can replace one tonne of wood that otherwise would be needed for making new pallets.

Encore’s revenue logic and benefits

Encore Ympäristöpalvelut makes an agreement on the use of loading pallets with the customers needing them. With the help of the agreements, Encore can predict the demand for pallets, manage them and optimise their logistics. The pricing of the pallets is based on a fixed charge that is paid every time each pallet is used.

Benefits to customers and end users

Encore’s service is a convenient option for customers: the customer has easy access to pallets without needing to make any fixed investments. Being of standard size and in good condition, the pallets are well suited to the automated warehouses of central wholesale suppliers. Serviced pallets stay in circulation for longer and in a more efficient manner, which reduces the amount of wood waste and the environmental load caused by the operations.

Project

The most interesting companies in the circular economy in Finland 2.1

The most interesting companies in the circular economy is a list compiled by Sitra to showcase Finland’s most inspiring examples of the circular economy. Sitra is using the list as a way to challenge Finnish companies to meet the changing needs of the world.

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