PALLETS LOAD UP INNOVATION
Looking ahead, more innovations will follow as pallets take their rightful place as critical assets that are closely accounted for in overall supply chain management. Ever since pallets were widely adopted in the shipping industry, they had largely been treated like any other disposable supply—similar to stretch wrap, tape, or labels. They serve their purpose, get used, and are then replaced without much thought. This traditional approach is shifting, however, toward a more managed and strategic use of pallets. The rise of AI creates growing potential for a more data-driven approach, offering improved traceability and visibility. Rather than simply enabling shipping and then disappearing from view, pallets could become assets that are tracked and optimized throughout their lifecycle. Pepperworth agrees that while pallets were once just basic platforms for moving goods, advances in technology are shifting the industry’s focus toward the growing importance of smart pallets. “Imagine a pallet arriving at a fully automated facility where there is no human present to receive the pallet or sign a bill of lading,” Pepperworth says. “In that type of environment, an automated guided vehicle is the receiver. So the pallet needs to be able to tell the robot what it’s carrying and how much.”
Today’s smart pallets have that capability. “The speed at which supply chain technology is advancing will enable the pallet to become an increasingly formidable asset in the supply chain,” he notes. iGPS Logistics: Smarter Pallets for a Greener, Automated Future In today’s data-driven supply chain, tracking assets is more important than ever. That’s why iGPS Logistics makes traceability a priority for its plastic pallets. “Not only is every one of our pallets equipped with RFID tags, but we also have tens of thousands of pallets fitted with trackers that can help us set up geofences to find pallets that have gone outside our network,” says Pepperworth of iGPS Logistics, a Florida-based company that provides plastic pallet pooling solutions throughout the United States. “Due to pallet density and the fact that pallets move in groups, every trailer we ship typically has at least one GPS tracker in it, which helps us keep a close eye on our full inventory,” he notes. iGPS customers are highly focused on keeping their manufacturing lines running at all times. For that to happen, pallets have to strengthen the process rather than hinder it. Wood pallets are no longer the ideal asset in many automated environments, Pepperworth says, as they are prone to breakage and can shed nails and splinters. They also can absorb moisture, which impacts their size and weight. Plastic pallets are better suited for automation, he adds. “If you look through the lens of a ‘lights out’ facility with few manual human elements, you need an asset that integrates with those automated systems and that has less potential to jam equipment,” Pepperworth says. In a typical load of wood pallets, around 5% are unusable, creating a built-in inefficiency, he notes: “Because of the consistent design and structure of our plastic pallets, our expectation is that 100% of the pallets we send to a customer will be ready for use, rather than 95% like some wood suppliers.”
“And it’s why you may have moved one pallet with an automated jack 10 years ago, but now you can move eight,” he adds. “There will also be an increased focus on weight. Identifying ways to make pallets lighter not only helps move more product and cube out trailers more efficiently, but it also means that less fuel is being consumed per pallet during shipping, which cuts down on the industry’s carbon footprint.” Gaining Actionable Insights In today’s pallet marketplace, it is important to be able to use technology, including AI, to be predictive and to understand and anticipate pallet supply and demand. At the moment, however, pallets are not widely viewed as assets that can drive their own data streams. That is changing. “Pallets can give us actionable insights about consumer behaviors,” says Pepperworth. “Because they prioritize speed and convenience, consumers are more accustomed to seeing pallets in the aisles at retailers rather than only seeing products on shelves. “The pallets can tell us how long a product has been on display, how frequently it’s selling, and how frequently the brand team is restocking it,” he adds. “Tomorrow’s supply chain will be even more data-driven and intuitive as smart pallets are more effectively put to use.”
Offering plastic pallet pooling solutions that prioritize traceability, automation, and sustainability, iGPS views pallets as a critical asset in the supply chain. Its pallets are equipped with RFID tags and GPS trackers that enable visibility by providing crucial data to users.
52 Inbound Logistics • May 2025
Powered by FlippingBook