PALLET-LESS STORAGE AND HANDLING SYSTEM

Eliminate reliance on wooden pallets and increase storage

This is a solution combining existing ideas and technology to eliminate reliance on wooden pallets used in the warehouse. This is a rethink of existing procedures that reduces the use of valuable space for storage of pallets and unnecessary handling of pallets. Results: Increased storage potential of 84,000 storage positions across employed operations, greater flexibility, increased productivity, and realized sustainable process.

IKEA new palletless decking system completely eliminates the need for wooden pallets throughout its network of 31 distributions centers worldwide.The system will save the furniture retailer tens of millions of dollars in pallet costs. Designed by staff at IKEA’s 1.5 million square foot distribution center in Savannah, Georgia, the new system allows product that is shipped on plastic and cardboard slipsheets with one-inch ‘feet’ to be stored on modified storage racks which allow access by traditional forklifts. The system will accomplish IKEA founder Ingvar Kamprad’s stated goal of eliminating the use of wooden pallets in all IKEA warehouses.

Not only are the slipsheets recyclable, but they’re provided by IKEA’s suppliers at a cost ranging from $1 to $3 each, as opposed to the $17.50 for Euro pallets (800mm x 1200mm) and $24 for longer standard IKEA pallets (800mm x 2200mm). IKEA gains a further benefit by not having to transport heavy and bulky wood pallets on return trips from the DC. The $2.4 million investment to kit out the Savannah distribution center has a return on investment in under a year given the DC spent $3.4 million last year on wooden pallets.  “We haven’t bought a pallet for this facility since the system went in,” says DC manager Ed Morris, who led the project. “It has been positive in all aspects so far. We’ve experienced lower damage, and while picking and putaway are about the same, there are significant time-savings in receiving and shipping.”