Media Release by Venlo Investments
Australian design and manufacturing group Venlo Investments (Venlo) has received a co-investment of $450,000 from the Federal Government’s Advanced Manufacturing Growth Centre (AMGC) to fund its industry-defying pallet project to solve the current worldwide shipping pallet challenge.
Pallet shortages are an ongoing issue affecting global supply chain operations and contribute to delivery delays of fresh food, beverages and general merchandise to retailers – with no immediate end in sight.
The global hardwood shortage has been blamed for the lack of wooden pallets; however, the real issue is the short lifespan of both timber and plastic pallets that sees around 25 per cent removed annually from operation to end up in landfill due to poor design, contamination and the inability to cost-effectively repair any damage.
Venlo’s Technology Enhanced Circular (TEC) Pallet project aims to address the timber pallet issue at its source by creating the world’s most circular (recyclable and reusable) pallet using recycled and recyclable materials, a repairable design, and implementing a highly scalable solution to meet global demand.
While traditional pallets are easily damaged and hence decommissioned, with recycling posing a major challenge, Venlo’s TEC Pallets will allows rapid repair of a damaged pallet and have it back in circulation within minutes, completely removing the need for breaking down, recycling, repurposing and remanufacturing.
“Venlo helps clients solve complex product problems with quality design and advanced manufacturing solutions,” Venlo Managing Director Ty Hermans said.
“When the world’s largest retailers identified the humble shipping pallet as a critical problem with the potential to disrupt global logistics, we listened.
“We believe our unique design and system will revolutionise the $115 billion global pallet industry for the better and continue our commitment to a circular economy,” Mr Hermans said.
The game-changing TEC Pallet project has already attracted interest from some of the world’s largest retail groups and suppliers, headquartered in North America and Europe.
Venlo Investments North America CEO Chris Macauley said the group identified the opportunity through its connections with retail industry leaders as the sector transitions from wood to plastic pallets driven by cost, supply chain optimisation and recyclability considerations.
“With little change in the global pallet industry over the past decades and a lack of manufacturing capacity to meet global demand, we knew Venlo could apply its advanced manufacturing expertise to a major worldwide problem and bring a revolutionary product to market at an unprecedented scale,” Mr Macauley said.
“It was one of those perfect solutions where preparation and capability meet opportunity,” he said.
The TEC Pallet solution is manufactured within an entirely circular closed-loop automated repair and remanufacturing system that will help divert a portion of the estimated $3.1 billion in domestic economic waste from landfill annually.
Each TEC Pallet incorporates advanced data-tracking technology and is designed to facilitate additional customer-specific data and environmental tracking in real-time, such as temperature, humidity, vibration, impact and weight.
Such advanced technology-enabled capabilities will allow organisations to predict pallet repair and servicing requirements, and allow continual improvement of supply chain efficiency and security.
Evolve Group, Venlo’s multi-award-winning Product Design and Advanced Manufacturing Division, will initially produce the TEC Pallets at a new dedicated facility in Brisbane, recruiting a large number of specialised staff across a range of professions.
Evolve Group Design & Engineering Manager Mayer Jung said the TEC Pallet system sets new benchmarks in efficiency and is designed to allow a closed-loop approach to the manufacturing and repair of pallets at a significant scale in multiple locations.
“Our solution is engineered to rapidly replace existing pallets, facilitate a quick transition from existing wood and inferior plastic offerings to TEC Pallets, and enable high-speed production in multiple locations for faster delivery to market to meet demand,” Mr Jung said.
Mr Hermans said the AMGC) co-investment funding will accelerate the TEC Pallet project with additional resources to deliver an Australian-designed and -manufactured solution, creating more jobs and lifting the national economy in the process while seeking investment from the likes of renowned institutions such as Macquarie Bank and Blackstone.
“Venlo’s mission is to create real and meaningful impact and drive circular outcomes through the adoption of innovative design and advanced manufacturing technologies,” Mr Hermans said.
“The TEC Pallet project achieves all of our objectives, delivering a true triple-bottom-line outcome through advanced manufacturing employment and education pathways and the provision of a closed-loop solution to reduce environmental impacts that are optimised for increased profit,” he said.
AMGC Managing Director, Dr Jens Goennemann said, “By leveraging all aspects of manufacturing, from design and engineering through to sales, service and support, Venlo’s new TEC Pallet will not only solve a growing logistics challenge but will do so in a manner that is friendlier to the environment and a company’s bottom line. Venlo is a prime example of a manufacturer doing things better not cheaper.”
