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protruding splinters, “which are more likely to cause problems or even jam up automated equipment,” he says. Pooling pallets can offer advantages over purchasing for some shippers. “Renting from a pooling model is advantageous in comparison to the inventory and logistical headaches of owning pallets,” Pepperworth says. “Manufacturers that own their pallets must shoulder the responsibility of storing, shipping, retrieving, repairing, and disposing of them. These assets essentially become a separate supply chain that they must manage.” Conversely, when manufacturers rent pallets from a pool, they have the pallets they need when they need them, and the volume of pallets can ebb and flow depending on the demands of the business. PICKING THE RIGHT PALLET Supply chain sustainability is another issue impacting customer choice of wood or plastic and pooled or purchased. “Reusable pallets are designed for sustainability; they reduce waste in the supply chain, can be reused for a long service life and can be fully recycled at the end of life, to provide a truly circular packaging solution,” notes Zitzke. When weighing all these factors, companies should seek to align their pallet strategies with their overarching supply chain strategy. Pallet choice needs to account for the return on investment over the entire lifecycle of the product and how it will be used. As with many such decisions, the less expensive near- term option may prove to be more costly over the long term. Pepperworth illustrates how downstream savings can mitigate upfront costs. One iGPS client, for example, produces bottled water. “Water is very heavy, so truck weight is a constant concern,” he says. “Because the iGPS pallet is lighter, they’re able to add more pallets on a single truck. As a result, they ship about 50 fewer truckloads per year, which saves time and money while keeping emissions out of the atmosphere.”
They also reported a 12% increase in cleaning-staff productivity because they no longer sweep up nails and splinters in their facilities,” Pepperworth says.
This is a benefit that is realized every day, with thousands of light truckloads crisscrossing the country,” Pepperworth says. Also, plastic is safer and easier for workers to handle not only because of its lighter weight, but because its construction doesn’t involve nails or materials that shed splinters and debris. Even though plastic is lighter than wood, it’s strong and highly durable. “An average plastic pallet can take about 100 trips before needing to be recycled, while the lifespan of the typical wood- block pallet is closer to 25 trips. These are actual estimates from the field, as opposed to just lab-tested numbers,” he says. Other advantages to plastic include consistent, uniform construction that conforms with standard 48” by 40” Consumer Brand Association pallet specifications; smooth, consistent surfaces that don’t absorb moisture that harbors bacteria and other pathogens, making them easier to clean and sanitize; embedded RFID chips that assist with automated storage and retrieval systems in addition to improving tracking and inventory; and the ability to be recycled into new pallets, “which offers
SUSTAINABILITY ADVANTAGES DRIVE BUSINESS FOR iGPS
Plastic pallet pooling provider iGPS, based in Orlando, Florida, promotes its “iDepot” business model, a partnership with retailers across the country that Pepperworth says contributes to a more environmentally friendly and more optimized supply chain. “When a traditional wood pallet arrives at a retailer, it then typically needs to be sent to a separate depot to be inspected and repaired,” he says. “This adds one more transportation leg to the supply chain. Then, the pallet needs to be sent to a manufacturer to be used again, adding another transportation leg. This entire process wastefully consumes time, fuel, money, and other resources.” Through its iDepot model, iGPS pallets are inspected directly on-site with the retailer, and then shipped to the next manufacturer for future use. “This keeps millions of truck miles off the roads each year,” Pepperworth notes. “The iDepot model not only optimizes the supply chain, but also creates a closed-loop ecosystem in which our pallets continue to be reused until they are ready to be recycled into new pallets. “Sustainability has become a major watchword in the industry in recent years. But it has been a pillar of our core values since iGPS’ inception,” he adds. Plastic pallets have many
iGPS, a plastic pallet pooling provider, touts its iDepot business model for its environmental
and cost benefits.
advantages over wood pallets, he says. They weigh less, and therefore
use less fuel and contribute fewer greenhouse emissions during shipping. “It’s important to remember that this is not a one-time benefit.
May 2024 • Inbound Logistics 61
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