P allets rarely get much attention, even though billions of them travel from automotive parts to tennis balls across the country and around the world. “Some people look at a pallet like it’s a commodity and not that big of a deal,” says Donald Maier, Ph.D., associate professor of practice, supply chain management, at the University of Tennessee, Knoxville. Yet pallets can add up to a hefty cost for many companies. Maier notes that when he worked in the corporate world, his company’s annual pallet expense hit seven gures. SEEING STEADY GROWTH AND MATERIAL INNOVATION The global pallet market is estimated to top $77 billion, and is growing at just under 6% annually, Business Research Insights reports. The market for plastic pallets is thousands of miles each year, helping to move everything expected to increase from $7.1 billion in 2024 to $10.5 billion in 2033, according to Strategic Packaging Insights (SPI). Innovations in materials, such as the development of biodegradable plastics and the incorporation of recycled materials, are also opening new avenues for growth, SPI notes. Plastic pallets’ ability to resist moisture, pests, and chemicals makes them a good t for industries such as food and pharmaceuticals. The list of materials used to make pallets is expanding, Maier notes. In addition to plastic and wood, pallets can also be made from corn stover, he says. This is an agricultural byproduct— essentially, what’s remaining in the elds after the corn itself is harvested. While corn stover is widely available, the supply chain for its use in pallets needs to be further developed, Maier adds.
Another option is OSB, or oriented strand board, an engineered wood product that shares many of the characteristics of plywood. When it comes to pallet platforms, “there’s a place for everything,” says Jessica Dzugan, vice president of technology at PalletTrader. Many large- scale enterprises may require multiple pallet platforms to meet their needs. Forcing a one-size- ts-all approach often means that the pallets either don’t t the task or cost more than they need to, she adds. ENABLING AUTOMATION AND TRACKING The growing use of automation within manufacturing and distribution operations is also impacting the pallet market, says Zach Thompson, product manager with ORBIS Corporation, which offers reusable plastic pallets and other supply chain products. Plastic pallets, because they’re precision molded, can offer repeatable, consistent sizing and dimensions— features that are often key to reliable performance in automated operations. A growing number of companies are working to track the products moving through their supply chains. Although pallet tracking remains somewhat limited, the number of companies offering pallet tracking solutions has jumped in the past decade, Dzugan says. In addition, more of the software solutions are hardware agnostic. Tracking solutions installed on pallets can help companies identify the locations of high-value loads, and pinpoint areas within their system that are experiencing shrink, Thompson says. Some regulations require tracking different products, like food products, he adds. Together, these trends are driving more requests for pallet tracking systems, he says.
While barcodes have been used to track pallets for a number of years, the cost of RFID has dropped, making it more feasible to use at scale, Maier says. Moreover, RFID solutions don’t require a direct line-of-sight to scan items, which allows multiple items to be scanned simultaneously. This saves time and cuts the likelihood of mistakes. Advances in optical recognition solutions can also aid in tracking, Thompson says. For example, 3D vision systems that use two cameras allow automation cells (or complete, integrated automation systems) to align end-of- arm-tooling (EOAT) before beginning a process. These systems are more expensive but over time, the ef ciency they enable can cut costs. “It all comes down to what is most important to the client and the automation cell they are adopting,” Thompson adds. For a tracking solution to work, the technology needs to be in place throughout the supply chain, Maier notes. As a pallet moves further from its origin, maintaining an accurate, reliable connection can become more dif cult. Successfully implementing these solutions also requires not just an investment in technology, but in employees who can track and leverage the information generated, he adds. The following companies are helping supply chain organizations use pallets to boost operational excellence, productivity, and resilience. iGPS REVOLUTIONIZING SUPPLY CHAINS The modern supply chain is more automated than ever, says Jeff Pepperworth, president and chief executive of cer with iGPS Logistics, which provides an all-plastic pooling system. As a result, it favors smart assets that are designed to ow through and
May 2026 • Inbound Logistics 59
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