ROI after six months: How ERIKS Germany saves more than 35,000 Euros annually through optimized pallet changes
Company: ERIKS Deutschland GmbH
Industry: Technical Services, Wholesale and Foreign Trade
Employees: 693
Solution: PARATUS® Change CARGO COMBI
ROI: approx. 6 months
Annual Savings: around €35,200
The challenge
ERIKS Germany is a partner to industry and handles a wide variety of goods flows every day. Consequently, various types of pallets that cannot be stored regularly arrive in the receiving area. At the same time, many shipments must be sent out on customer-specific or disposable pallets.
Before introducing the PARATUS® Change CARGO COMBI, this process required a significant amount of manual labor. Employees had to repack the goods by hand and then secure them again. This process was time-consuming, used more materials, and caused high physical strain in day-to-day warehouse operations. Additionally, unnecessary costs arose when shipping to countries that do not participate in the Euro-pallet exchange system.
ERIKS’ search for a cost-effective solution prioritized reliability, cost-effectiveness, and easy integration into existing processes. The PARATUS® Change CARGO COMBI was chosen. Key factors included its robust construction, low maintenance requirements, and simple, reliable operation. Equally important was the competent and dedicated support provided throughout the entire project.
Quick rollout without any process interruptions
The implementation went smoothly. It took only a few weeks from the initial order to completion. Although the internal procurement process took more time, technical integration into existing workflows occurred almost immediately. Training all employees took about 15 minutes.
A particular challenge was the limited drilling depth possible in the warehouse floor due to the underfloor heating system. Fortunately, the system only required a shallow anchoring depth, so this requirement was easily met.
“With the PARATUS® Change CARGO COMBI, we were able to significantly increase the efficiency of pallet changes. It was easy to integrate, reduced our employees’ workload, and paid for itself in a very short time.”
Henning Wallerius
Administrative Logistics Team Leader / Warehouse Supervisor
ERIKS Deutschland GmbH
Economic Benefits
The benefits became apparent shortly after the system was implemented. ERIKS can now transfer goods to the required pallet types much more quickly by using the PARATUS® Change CARGO COMBI. At the same time, many of the previously required manual steps are no longer necessary.
Annual savings:
• Shipping on disposable pallets instead of Euro pallets: approximately €14,000 (about 40%).
• Time savings in the process: approximately €20,000, equivalent to about 94 percent.
• Material savings: €1,200, equivalent to 100%.
Total savings: approximately €35,200.
These savings meant that the investment paid for itself in about six months. For ERIKS, changing the type of pallet used thus went from being a necessary step in the workflow to a measurable economic advantage.
More Than Just Cost Savings
In addition to the financial benefits, the company is experiencing other positive effects. Employees experience a noticeable reduction in workload due to reduced manual effort. At the same time, warehouse processes are accelerated, allowing goods to be processed and shipped more quickly. These positive results have led ERIKS to consider implementing the system at additional locations.
Conclusion
Many companies look for cost-saving opportunities in large investment projects. ERIKS Germany’s example shows that seemingly small process steps can significantly impact profitability. With annual savings of over €35,000 and a payback period of just six months, the PARATUS® Change CARGO COMBI proves that efficient pallet changing saves time and directly contributes to a company’s success.