Bulk Pallet Procurement for New Factory and Logistics Center Launches｜Long Term Rental to Reduce Initial Investment

Technology & Services

SANKO Pallet Rental (Thailand) Co., Ltd. provides long term rental services for companies that continuously use large quantities of pallets, such as when launching a new factory or logistics center. Purchasing several thousand pallets all at once requires a substantial amount of funding at the start of operations. With long term rental, companies can secure the required quantity without purchasing the entire amount, helping to reduce expenditures at the time of launch.

Depending on the required quantity, usage period, budget, and operating method, we propose pallet procurement options that do not rely solely on purchasing the entire quantity at once.

Table of Contents

• Several thousand pallets may be required at once when launching a new factory
• How bulk pallet purchases affect budget and management
• Reduce launch stage expenditures with long term rental
• Rental service coordinated with the Group’s manufacturing base
• FAQ

■　Several thousand pallets may be required at once when launching a new factory

When launching a new factory or logistics center, unlike adding pallets for normal operations, it may be necessary to prepare a substantial quantity from the start of operations.

There have been cases where approximately 5,000 pallets were required in the middle of the fiscal year even though a purchase budget had not been secured in advance. Depending on the scale of the facility, several thousand to tens of thousands of pallets may also be required.

With quantities at this level, it is necessary to consider not only “which pallets to use,” but also “how to procure them” and “how much funding will be required at the start of operations.”

■　How bulk pallet purchases affect budget and management

When several thousand pallets are all purchased, a substantial expenditure occurs at the time of introduction.

In particular, for companies operating on an annual budget, if new demand for pallets arises after the annual budget has already been prepared, securing an additional budget may be difficult. If several thousand pallets are required in the middle of the fiscal year, it is not always possible to purchase the required quantity immediately.

In addition, purchased pallets become company owned assets, so after introduction, their quantity, storage location, and usage status must be managed continuously. Depending on each company’s accounting policies and acquisition conditions, they may also be subject to asset management.

■　Reduce launch stage expenditures with long term rental

With long term rental, rental fees are paid according to the usage period, so there is no need to prepare the purchase funds for the entire quantity of pallets before operations begin.

Various expenditures overlap during the launch stage, such as new factory construction and equipment installation. By using long term rental, companies can spread out pallet procurement expenditures while securing the required quantity.

In addition, because rental pallets are not purchased and owned by the company, the burden of continuously managing them as company owned pallets can also be reduced.

■　Rental service coordinated with the Group’s manufacturing base

The plastic pallets used in SANKO Pallet Rental (Thailand)’s rental service are supplied in coordination with the Group’s manufacturing base in Thailand, Sanko Plastics (Thailand) Co., Ltd.

Pallet manufacturing, raw material management, and manufacturing technology are handled by the manufacturing base and the SANKO Group, while we are responsible for providing rental services to customers and managing rental operations.

When consulting with customers, we review not only the required number of pallets, but also pallet size, the products and weight to be loaded, the operating environment, and handling methods, and then propose pallets that match the actual operating conditions.

If you are considering procuring a large quantity of pallets or using long term rental, we will make proposals based on the required quantity and usage conditions. Please feel free to contact us.

■　FAQ

Q1：We need several thousand pallets for the launch of a new factory. Is long term rental available?
A1 : Yes. Long term rental is available when large quantities of pallets will be used continuously, such as for the launch of a new factory or logistics center. After confirming the required quantity and usage conditions, we will propose an operating method.

Q2：What is the difference in launch stage expenditure between long term rental and purchasing?
A2 : When purchasing a large quantity of pallets, the purchase cost for the entire quantity is required at the time of introduction. With long term rental, rental fees are paid according to the usage period, so there is no need to pay the purchase cost for the entire quantity at once.

Q3：Do rental pallets need to be managed as company assets?
A3 : Rental pallets are not pallets that the company purchases and owns, so they do not need to be managed in the same way as company owned assets in terms of quantity and asset management. For specific accounting treatment, please confirm the contract terms and your company’s accounting policies.

Q4：How should we choose between purchasing and long term rental?
A4 : It is important to compare the options based not only on the required quantity and usage period, but also on the budget available at the time of introduction and the company’s ownership and management policies. If a large quantity of pallets is required at once and the company wants to reduce the initial purchase burden, long term rental can be considered as a comparison option.

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