listening to our customers’ needs, and ends with utilizing our vast resources to deliver the highest-value custom program that spans the entire lifecycle of a pallet.” Kampsdoes not operate on a pooled or rental business model, believing that owning pallets “creates an advantage for businesses as customers retain ownership of their valuable assets,” says Hasanovic. By retaining ownership of the pallets, and strategically using a lifecycle management service to lower costs, companies can “maximize pallet re-sell value and enhance the resiliency of their supply chain,” he says. In 2023, Kamps debuted its innovative pallet management platform for national supply chains. Comprehensive Pallet Life-Cycle Services™ (CPLS) is “Kamps’ answer to the largest pain points of national supply chains,” Hasanovic says. “CPLS differs from other pallet management platforms in the industry as it features an industry-leading whitewood pallet pool retention rate. The platform builds a closed-loop ecosystem around every stage of the pallet’s lifecycle,” he adds. The Kamps CPLS can help lower costs in multiple ways. “The largest cost reductions arise from decreased costs to repair a pallet or purchase a used pallet from Kamps compared to a new,” he says. “Other avenues are more indirect
and include efficient time utilization of staff and improved warehouse space utilization. Kamps customers that have utilized a CPLS program report up to $2 million in savings annually.” If there is an overflow of used pallets, Kamps will purchase the pallets with value from the customer at competitive rates. These rates are affected by market supply, demand, and market resale conditions, but “due to Kamps’ size and network, Kamps customers experience greater stability,” he says. The program also enhances sustainability practices by decreasing the number of trees harvested, lowering carbon emissions, and avoiding landfills. “These three metrics are quantified and verified data is available to customers quarterly,” Hasanovic says. CPLS also helps companies lower supply chain risks, he adds. Traditionally, supply chain leaders experienced a new buying journey every time a load of pallets was purchased. This exposed supply chains to risk in supply shortages and extended lead times. “With Kamps CPLS, customers are usually insulated from this risk as their pallets do not leave their ecosystem unless they have reached end-of-life, where they become a sustainable byproduct,” he says. With a half-century of experience, the company has vertically integrated business units with specialized
expertise in every stage of a pallet’s lifecycle, such as sawmilling, new pallet manufacturing, custom pallet design, pallet recycling, and sustainable byproducts. The company also boasts industry-leading systems within their Information Technology and Continuous Improvement departments. Its circular closed-loop system, “with guaranteed zero wood waste, ensures that pallets that no longer can be repaired are harvested for their usable components or cycled down to our Wood Resources Services team,” Hasanovic says. BETTAWAY PALLET SYSTEMS EXPANDS WITH ONLINE MARKETPLACE OFFERING After 40 years in operation, South Plainfield, New Jersey-based Bettaway Pallet Systems added a new business model. In October 2022, the company launched PalletTrader, an online pallet marketplace and order management platform that augments Bettaway’s traditional model, giving customers instant supplier choice and complete order visibility all in one platform. “PalletTrader acts and performs as an on-demand pallet network. It brings businesses together, with complete control over all pallet procurement and order management in one centralized place,” says President John Vaccaro. PalletTrader can be compared to a modern-day transportation management system. It streamlines the pricing and procurement process, then automates the order tender, tracking, and payment processes all into one system. PalletTrader gives users the ability to transact on the open marketplace, or privately conduct business with existing partners. It can link multiple facilities, either owned or managed, and administrators can assign unlimited user permissions to those facilities, which standardizes fragmented order processes. “We understand the needs of pallet buyers who may want to keep all or some of their incumbent supplier network yet desire a comparable technology that has become mainstream in other areas of their supply chain,” says Kevin Kull,
Wood pallet provider Kamps operates updated plants like this one in Coatseville, Pennsylvania. The company offers customers an innovative pallet-management platform that builds a closed-loop ecosystem around every stage of the pallet’s lifecycle.
64 Inbound Logistics • May 2024
Powered by FlippingBook