Case Study

Ongoing savings when replacing wood pallets and bulk bags with TELLAP

A major supplier to the hot molten industry in Australia, Dickinson’s Metallurgical Supplies, embarked on a long term project with a major Australian steel producer to supply rice hull ash from India.

Traditionally shipped in conventional bulk bags and hardwood pallets TELLAP and Dickinson's worked together to convert the semi bulk packaging away from wood pallets.

Motivation for the change:

  • The wood pallets coming from India were infested with borer which is a banned timber pest in Australia and many other countries.
  • To maximize the weight of product in the container
  • Cost and threat of Australian Quarantine Inspection Service (AQIS) inspection and rejection of shipments
  • Pallet disposal cost
  • To reduce costs and pass savings to the industry
  • Increasing sustainability of the packaging

Over time TELLAP in conjunction with Dickinson’s introduced pallet free bags to the steel producer. After a steady progression and several trials TELLAP bags were accepted by the customer.

Results of the change:

  • Eliminated bag damage problems associated with timber pallets
  • Removed threat of borer and heavy fines
  • Kept AQIS happy (Australian Quarantine)
  • Removed heavy pallets 35kg, replaced with TELLAP sleeves 2.3kg
  • Optimized the volume, using room between the sleeves
  • Increased product weight in containers from 16 to 18 metric ton
  • Reduced transport costs per metric tonne
  • No ISPM15 treatment, no disposal costs as packaging recycled

Other packaging options considered

Plastic pallets – were expensive, were found to be brittle and break causing bag damage and product contamination.

Boxes with plastic liners were expensive and infestation concerns remained.

Conclusion

Changing from wood pallets and bags to TELLAP lowered transport costs per metric ton, increased product stability and removed the threat of costly customs compliance.

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