By partnering with Litco International, Lincoln Electric is meeting European export requirements, streamlining its pallet inventory, and receiving an added sustainability benefit too. “In the past, our shipments to Europe were sometimes held up for inspection,” says Tom Soster, manufacturing engineering manager for Cleveland-based manufacturer of arc welding machines and consummables. “Now, the presswood pallets flow right through.”
Lincoln began investigating presswood export pallets several years ago as part of a cost reduction program. At the time, the manufacturer was purchasing construction-grade pine and fabricating export pallets in-house. In addition to maintaining an inventory of nine different sizes that took up valuable dock space, the pallets had to be bark free and manufactured from heat-treated lumber to meet European regulations for export pallets.
Lincoln logistics professionals were intrigued by Litco’s environmentally-responsible process that combines wood waste and wood byproducts with high heat and pressure to form a presswood pallet. The finished product is ISPM 15 approved wood packaging that is guaranteed to be free of bugs, bark and mold. In addition to being export ready, Litco’s 24” x 40” half pallets seemed ideal for Lincoln’s welding machines. Lincoln requested samples and began shipping the first of nine products to European markets using presswood in 2009. According to Soster, “On our first shipment, we learned that presswood pallets are common and welcome in Europe. It was a very easy transition.”
Since then, Lincoln has changed eight additional pallets over to the presswood pallet, delivering an estimated 5% savings. More importantly, Lincoln can order the pallets on an as-needed, just-in-time basis from a local distributor. “The ability to order based on what we need means we can run a leaner operation,” says Soster. “And, since they nest, we can bring 50 pallets at a time into the product area instead of 25. That means fewer trips to move pallets.”
As an additional benefit, presswood pallets carry a silver Cradle to Cradle certification from MBDC, an organization that assesses the sustainability of a product and the practices employed in making it. “Like most responsible organizations, Lincoln Electric is concerned about sustainability,” says Soster. “Using a presswood pallet is not only meeting our shipping requirements, it’s making us a little more green.”
To learn more about ISPM 15 requirements, or to discuss if presswood is a viable option for your export pallet needs, contact Litco International for more information.
