Automation set to redefine the future
Many companies are now expected to opt for automation and robotic themes to keep their business going in the post-COVID-19 world. Ajay Jhalani, Managing Director – India, Winner Interplast Company shares the insights of the pallets industry.
INDUSTRY INTERVIEW
What is expected to happen post COVID-19 in supply chain and warehousing?
Automation will get a boom once things will get back to normal. A lot of companies will focus on automation in palletisation, post COVID-19, to maintain social distancing. For example, for loading and offloading of any truck, approximately five to six labours are being used. This can be reduced through palletisation. Apart from this, automation and robotic themes will also work.
Why has the demand for plastic pallets suddenly increased?
Globally, a lot of manufacturing companies were using wooden pallets. After the sudden outbreak of COVID-19 and self-realisation of how businesses can be knocked off, companies are taking strategic calls in supply chain and warehousing to use recycled plastic injection moulding pallets. The global market for pallets is distributed around 90 per cent to wooden pallets and 10 per cent to plastic pallets. However, this trend is changing and by 2025 the demand in global market for wooden pallets will get reduced by 60 per cent and plastic pallets demand will be increased by approx 3035 per cent. The rest will be for other materials like steel and fibre.
What are your thoughts on 3R policy?
The world is moving towards a circular economy which is ‘reduce, reuse, and recycle’. It calls for an increase in the ratio of recyclable material, further reusing of raw materials and manufacturing wastes, and overall reduction in resources and energy used.
How easily available are the raw materials for plastic and wooden pallets?
Globally, for manufacturing to retail; the preferred wooden pallet is pinewood and in plastics; it is HDPE (High Density Polyethylene) which is a polymer. In the Indian context, three to four major private and government companies are making raw material. Hence, availability is not a concern. However, importing pinewood with new norms of sourcing will be challenging.
In what circumstances would you recommend use of wooden pallets, and when would plastic pallets be a better choice?
Naturally, most exports are happening for wooden pallets due to flexibility of dimensions and sizes. However, going forward, companies will switch over to standard plastic pallets due to automation.
Have you developed any new lighter export pallets?
We have responded to the innovation and we are the first company in Asia to develop lightweight pallets of 4.2 kg. Since, the pallets are lighter, they are also cheaper.
What change you have seen in 25 years in pallet business?
In 1996, there used to be small go-downs for storage in India and people used to operate them manually. By 2006, people started developing warehouses with vertical racking. From 2016 onwards, companies are using a lot of ASRS (Automatic Static Retrieval Systems). The metamorphosis from a go-down to a warehouse and to a logistics park is evident.
How do you see the logistics and supply chain sector in the last five years?
Global logistics spend is around eight per cent of GDP but in India it is approx 14 per cent of GDP. The government is aiming to reduce the logistics spend from 14 per cent to 10 per cent of GDP with automation and high quality of infrastructure.
After the sudden outbreak of COVID-19 and self-realisation of how businesses can be knocked off, companies are taking strategic calls in supply chain and warehousing to use recycled plastic injection moulding pallets