Supply planning

Supply and cost planning

Despite its apparent simplicity and small share in the overall cost basket, pallets and other wooden packaging play a critical role in any production, especially in industries where production takes place in large volumes and with a high degree of automation.

In order to ensure that our customers are always provided with wooden packaging, we ask that you pay due attention to the timely scheduling of deliveries.

The minimum time required for the production and delivery of any cargo is 5-8 working days, provided there is free capacity.

However, in most cases, our reliable suppliers are busy 3-5 weeks in advance, therefore, when planning wooden packaging deliveries, our recommended lead time from the moment of the order till the delivery date of the product is as follows:

• Container cargo: depending on the complexity of the product: 2-3 months (4-6 weeks until the cargo is delivered to the port plus 4-6 weeks in transit)
• Bulk cargo: 1-2 months (4-6 weeks for cargo delivery to the port plus 1-2 weeks in transit).
• Truckloads: about 1 month (3-4 weeks in production plus 3-5 days in transit)

The second very important factor is the raw material (= log) prices, which change in Latvia on average 2 times a year (based on the results of the auctions)

Therefore, the preferred period for price fixation is half a year. If the term is longer, the customer should take into account that the possible risks of price fluctuations will be included in the price.

Also, the price of transport is of great importance, which is on average 15-25% of the total costs. Transport is one of the most difficult factors to predict, therefore additional costs may be applied depending on availability at the particular moment.