The traditional methodology for the beverage distribution industry is to both store and deliver product on large-format pallets. With regard to order or delivery pallets, the variety of SKUs contained on a pallet was either built in a distribution center or created at the point of delivery. As reported in several articles, “beverage distributors are now addressing the unique needs of delivery drivers with a primary focus on safety, ergonomics and durability.” Increasing the utilization of small-format delivery pallets significantly reduces factors that negatively are impacting the distribution network.
The small-format pallet, sometimes referred to as a “half pallet,” allows beverage distributors to minimize the overall labor cost of getting product to retail, thereby enhancing profitability. Many companies in the beverage industry that already have gone to small-format delivery pallets for a significant portion of their routes are experiencing a reduction of delivery times, with a subsequent increase of stops each day.