ECRA Launches Guidelines for Multi-Coded Pallets

Our industry is one in which there is a rapid pace of change. This facilitates the industry staying at the cutting edge by providing product to shoppers when and where required, at the best quality and value for money. The adoption and implementation of standards that govern identification, communication and receipt of products along the FMCG retail supply chain is critical in achieving efficiency and effectiveness in product supply. 

In cases where competitive advantage is gained through operational execution, rather than through proprietary intellectual property, a better and timelier outcome can be achieved by developing and implementing industry standard approaches. This is a role that ECRA regularly provides by bringing suppliers and retailers together to develop and implement optimised programs. 

Multi-coded pallets (MCP) are where multiple use-by dates/batch codes of a given SKU are consolidated onto a single pallet for distribution from a supplier to a retailer. Potential benefits include reduced handling of pallets, less space taken up in DCs storing pallets and more efficient utilisation of transport. 

In 2013, Coles and Woolworths had each piloted the receipt of MCP’s into their respective distribution centers with varying rules and requirements. Metcash has also shown an interest in potential implementation of MCP. It is clear that there is benefit to industry in implementing a single standardised approach compared to the complexity and potential for errors in managing different rules and requirements. 

As such, ECRA’s Order to Receipt Excellence Working group, consisting retailers, suppliers and GS1, has facilitated an industry standard framework for implementation of MCP to assist industry participants in gaining benefits and avoiding issues associated with MCP introduction. The ECRA Multi-Coded Pallet Guidelines were launched at the annual ECRA Supplier and Retailer Convention on 17 October 2013, and can be access by clicking here.