Safety stock (with Plastic pallet boxes) and do you need it?

Risk Management, Chaos Theory and plastic pallet boxes? What can the first two things have in common with plastic boxes, even if they are foldable?

One of the biggest challenges for modern business is risk management. How will the market react in a state of global economic crisis? Caused, for example, by a world pandemic? Does it sound familiar to you?

Even if it is not about the global economic crisis, every trader knows that market trends are like the mood of a capricious woman. Constantly changing retail landscape and the demand fluctuation curve, which sometimes resembles the seismograph curve during an earthquake, suggest vital decisions are made by retailers.

However, a good safety stock strategy can significantly soften the impact of such unforeseen circumstances for your business.

Safety stock – definition  

Safety stock (SS) is a certain number of extra goods, stocks, articles – which producers/traders keeps in their warehouse. In this way they can ensure that its products will continue to reach their customer if there are problems with production or deliveries. Like closing borders due to a global pandemic, for example. Or raw materials not being delivered in time.

Safety stock is also used to level out internal incidents in factories. Sometimes machines and production facilities fail or break down for some reason. Therefore, the manufacturer must be assured that agreed deliveries to his customers will not stop. The “insurance” for such cases is called: Safety stock.

SS is an important strategic tool in achieving a high level SLA (Service Level Agreement) in which the customer gets the maximal assurance of timely deliveries. This is a very important aspect for companies working with  JIT (Just in Time Delivery) as is often the case in the automotive industry.

SS also can be an important strategic tool in times of global economic crisis, when nothing is certain. If the prices of a product fall, the trader can withdraw it from his stores and store it as a Safety stock to wait for better times. For this purpose, however, there must be a well-equipped warehouse. Here comes the role of quality plastic pallet boxes…

Plastic pallet boxes & best packaging solutions

Do you remember how this text started? Risk Management, Chaos Theory and plastic pallet boxes… As explained above, safety stock is a good tool for risk regulation. And to the management of warehouse goods, articles or products need plastic pallet boxes designed for safety stock.

ZAMKO is a leading specialist of foldable pallet boxes, shipping boxes and automotive packaging. What makes them unique is their individual and open approach to each client. And the most specific needs and requirements are discussed in depth with the client to reach the best packaging solution.

In this article we want to draw your attention to two of their products. These are Plastic Pallet Box – 1000 × 1200 and Plastic Pallet Box Sleeve with Folding Window – 1000 × 1200.

Both models can be stacked without installing and maintaining a costly racking system. You can just stack the pallet boxes on top of each other up to 5-high.

Load capacity varies from 300 up to 900 kg per box.

With their proven quality, ZAMKO products meet the requirements of a wide range of industries. Among them are: Chemical, Construction, Agriculture, Transport, Warehousing & Logistics, Recycling and many others.

How to calculate the safety stock you need?

There are four types of situations for safety stock:
1. Demand uncertainty: Lead time never changes and demand changes.
2. Lead time uncertainty: Demand never changes and the lead time changes.
3. Lead time and the demand changes, and are independent.
4. Demand changes depend on lead time changes.

With this formula you have flexibility to calculate the necessary safety stock in all the 4 situations:

https://zamko.eu/9480-2/

The best solution

Zamko is your independent supplier and specialist who can pack your worries and secure your future. Sometimes the best solution is ingeniously simple. Like plastic pallet box. Ensure your safety stock with pallet boxes designed for this purpose. Zamko delivers its products throughout Europe and beyond. Call now: https://zamko.eu/contact/