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3 Ways That Warehouse Facility Managers Can Reduce Wooden Pallet Costs

by Jennifer Jones

There is a saying in the logistics industry that "Pallets move the world". As a warehouse facility manager, you have probably heard of the saying in your typical day-to-day operations. It is true because wooden pallets are considered as the basic building blocks of most business, and without them, the supply chain would be reduced to chaos.

Putting this into perspective, it is undeniable that a warehouse would need hundreds of pallets to make shipments easy. If you are not careful, a storage facility might pile up costs related to purchase and maintenance of pallets. This post provides warehouse facility managers with insight for reducing the cost of wooden pallets.

Opt for Refurbished Lumber Pallet

One of the most common misconceptions in the logistics industry is that wooden pallets made from recycled lumber are less durable or weaker compared to new lumber. However, it is not the case since wooden pallets have to meet specific quality standards before being used for shipments.

For instance, one requirement is that wooden pallets have to be heat treated to prevent parasite invasion of cargo. Such treatment lasts for a long time even after a pallet has lost its sturdiness. Therefore, if you decide to go for cheap pallets that are made out of recycled lumber, you can still be assured that the refurbished pallets will be equally reliable and safe.

Use Half Pallets

The most popular pallet size in Australian warehouses measures 45.9" by 45.9". It can easily support weights of up to 3 tons. However, as businesses continue to streamline their operations and adopt lean strategies, most firms have realised that they do not need their products to be supplied in full-sized pallets. As a facility manager, therefore, you do not have to purchase full pallets when delivering to such businesses. All you have to do is cut a full pallet into two equal pieces and use each for making deliveries to different customers. You will reduce your costs on pallets while meeting the needs of your clients.

Avoid Just-in-Time Delivery Strategies

The just-in-time strategy works best in the production industry where orders are placed before the manufacturing process begins. However, in a warehouse setting where orders come fast and quick, it might be impossible to adopt the strategy for the simple reason that there is no fixed ordering schedule. Ensure that you have pallets on standby at any given moment to cater for urgent orders since a last-minute rush will cost you extra. If you do not have storage space, ask your supplier to facilitate a contingent inventory just in case you need to order on short notice.