It'll probably be a case where using pallets is allowed because of the amount of freight that needs to be moved and pushed, but that's where this whole thing loses me.
You're going to have pallets and pallet jacks still, you're just not going to use them except in certain situations.. which means they're going to be sitting there, taking up space, most of the time. That just seems wildly inefficient. TMs have to get used to using flats, except for special cases where they don't.. and then it's back to flats again. Why have such a needlessly inefficient and confusing process?
I imagine you're still getting paper and water on pallets. What happens when you need to push all of it? Do you pull it off the pallet, put it on a flat, and push it out? Or do you pull the entire pallet out to push it? The former is an inexcusable waste of time while the latter just seems odd because now you have a mix of pallets and flats on the floor -- so why not just stick to pallets at that point?
I'm sure it will work under good leadership and hard working TMs.. but I really don't see the point of it all. They're attempting to fix a process that was never broken in the first place, and they're doing a very poor job of it.