Widely available and commonly used, the wood pallet has been a staple in global supply chains for generations. As supply chains become increasingly sophisticated, the hidden costs of wood are coming into sharper focus. From incompatibility to disruption due to debris, the traditional wood pallet in some cases has become a short-term solution to a longer-term logistical challenge.

For companies seeking to optimize their longer-term outlook, transitioning to reusable plastic pallets represents more than just a platform change; it is a strategic investment that can pay dividends over time. Supply chain managers, by moving away from the packaging expenses associated with wood pallets, can achieve repeatable performance, reliable service and more predictable costs well into the future with a more durable option such as reusable plastic pallets.

The Need for Durability in Automated Warehouses

As medium- to large-scale operations continuously move toward increased automation, reliable and repeatable performance is crucial. Automation thrives on precision and reusable plastic pallets provide a level of consistent dimensionality. Plastic pallets are precisely molded to exact specifications.

Consistency matters in automated environments, where loose boards and uneven surfaces from wood pallets can create significant operational risks. Interferences caused by debris in an automated system can trigger immediate shutdown. In a high-speed environment, the risk of downtime represents a greater cost than the savings realized through purchasing wood pallets.

Furthering Sustainability Goals and the Circular Economy

Logistics-driven environmental impact is under more scrutiny than ever. Reusable plastic pallets are a cornerstone of the circular economy. These pallets are designed for a long service life, with some traveling 400+ trips over the course of their life. Upon reaching end of service, a plastic pallet can be recovered, recycled and reprocessed into usable resin, which is used to manufacture new pallets or other packaging materials.

From a logistics perspective, the design of a reusable plastic pallet makes a difference. Available in standardized footprints that efficiently cube out standard 53’ trailers, these pallets are designed to maximize trailer utilization, so companies can ship more product in fewer trips. On the return trip, plastic molded nestable pallets, for example, allow transport of 2-3x the pallets per space available. This enables companies to fit more empty pallets per return trip, resulting in fewer trips and less fuel.

Developing Product Solutions based on Customer Need

It is important to work closely with companies to identify the supply chain challenges and help determine the best pallet solution for the application. During the pallet selection process, key factors that are typically evaluated include load weight, load type, planned usage, trip distance, pallet turns, temperature requirements, sustainability goals, and any regulatory or compliance requirements.

Unique pallet features range from ergonomic improvements, such as better hand holds for manual handling and high-tech integrations like RFID tracking, to frictional elements to prevent load shifting to hygienic designs for better cleanliness and integrated steel reinforcements for heavy-duty racking.

Selecting the Right Materials

Selecting the correct resin for a reusable plastic pallet involves multiple variables. Because needs vary between industries, it is advisable for buyers to work with their partners to determine the best material for their specific performance requirements.

A major focus is the use of Post-Consumer Resin (PCR) in pallets. Using PCR helps close the loop by repurposing recovered plastic into new products, diverting waste from landfills and reducing reliance on virgin resin, supporting lower environmental impacts across the supply chain.

The use of PCR is at an all-time high. Companies are asking for higher rates of PCR in their pallets to meet sustainability and recycling goals.

Maximizing ROI through Training and Maintenance

As noted, transitioning to reusable plastic pallets can pay dividends over time. To ensure that return on investment (ROI) goals are met, companies must implement thorough staff training. This includes establishing approved processes for handling, inspection, cleaning and maintenance.

Organizations are also using financing options for pallet programs, to reduce the impact of the initial capital investment with reasonable and predictable monthly payments. Bundling packaging investment with other capital equipment expenditures can also be done. For example, a company investing in an automated pallet shuttle system can simultaneously finance the automation along with the pallets. This ensures that the project specification and launch are fully aligned between all supplier partners.

Defining Success Metrics

At a high level, the best way for companies to determine if their reusable plastic pallet program is successful is to start with the total cost of ownership (TCO). When viewed through this lens, the long-term savings become clear as compared to the constant replacement costs associated with wood. Other metrics include:

System Uptime. Every minute of downtime in an automated environment is a loss. Accordingly, reusable plastic pallets serve as a deterrent to downtime by providing consistent, reliable performance in production lines and automation cells.

Cost Per Trip (CPT). Quantifies the value that asset has every time it moves a load.

Environmental Savings. Using packaging life-cycle assessment tools, companies can compare limited use wood pallets to reusable pallets to quantify the impact reusable pallets have on electricity usage, solid waste, water conservation and greenhouse gas emissions.