An interview with Bobby Edmond, Drector of Applications for vonGAL Palletizers

With the growing popularity of automating the palletizing function, we arranged an interview with vonGAL, a leading manufacturer who has the largest installed base of palletizers in the country. Bobby Edmond is vonGAL’s Director of Applications, and has been in the business for 25 years. He has seen applications in a wide range of industries, and in companies large and small. I asked him if he would take time to share his thoughts, and answer a few questions of interest to those that might be considering palletizing for the first time.

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As interest continues to grow in automated palletizing, let’s take a brief look at a few of the issues surrounding these applications.

Over the next couple of months, I’ll be providing a handful of blog postings relative to palletizers. We will begin with what is driving the growth in the use of these products, then a look at basic systems, cost estimates, what you can expect from a properly applied palletizer system, and then share specifics from a couple of actual implementations in distribution centers.If you are experienced in palletizer systems, you will likely be familiar with much of what is covered here. If you are new to palletizing, or considering your first system, hopefully this information will help you understand what the issues are and how you can navigate them.

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Last night I while watching the news on TV, I saw a story on the cost of diesel fuel. Where I live I understand that diesel fuel runs about 60-80 cents more per gallon than what I pay now for unleaded. The news story showed a trucker filling his tank, and the total bill came in around $600!

The story cited the rising cost of oil and increasing demand for diesel in other countries as contributing factors to the rising prices. I am sure that the current value of our dollar has also affected the price at the pump.

Those increasing fuel prices affect the delivery cost of capital equipment. Most freight companies add a fuel surcharge to the cost of delivery. As the price of fuel fluctuates, they adjust fuel surcharges accordingly. One freight company we work with adjusts their surcharges weekly. (more…)

It’s more immediate of course, when the cost at the pump jumps, but rising fuel costs are a reality in your shipping operations whether you are pushing product to customers or bringing it into your facility. We’ve all seen the fuel surcharges and continually-rising freight rates.

According to Operations & Fulfillment, labor developments may have just as much impact over the next few years. Over the next 5 years, the latest UPS contract amounts to a $9 per hour labor cost increase, which will certainly make its way downstream to shipping charges. Developments in other companies such as FedEx and labor negotiations across the shipping and freight world mean that even if fuel prices stabilize, it’ll cost you more to ship and receive products.

Curt Barry’s article at Operations & Fulfillment recommends some of the steps you can take…

1. Look at transportation in the context of the total supply chain efficiency. (see Curt’s article for tips).
2. Institute vendor compliance policies, include routing guides for inbound carriers. Do not permit vendor-controlled freight..
3. For high returns businesses, use return services.
4. Join an inbound freight consortium with contracted carriers and negotiated best rates.
5. Do your homework. You have to understand your volume and shipping characteristics, etc.
6. Consider a freight consultant, which can reduce costs 15% to 25%.