Pallets are containers that help transport your products and goods from one place to another and store them at the warehouse. In the past, companies had to invest in pallets based on their specific needs. However, the scenario has evolved, and you can now benefit from pallet pooling solutions.

You must have heard of carpooling and pallet pooling works on the same concept where you share the wooden pallets with other companies.

What is Pallet Pooling?

Pallet pooling is sharing and reusing model, which means you don’t buy and exchange the pallets. Instead, you rent them and outsource the pallet management services.
Pallets are no more a commodity but a pallet service in itself. So pooling offers a sustainable and an efficient alternative to the traditional pallet exchange. The pallets get reused and shared within a network of producers, distributors, manufacturers, retailers, and other receiving locations, along with transporters and service centers.

Benefits of Pallet Pooling

● Pallet pooling helps in reducing hidden costs

There are always chances of incurring unexpected pallet management expenses, which can be more than what you think. However, the main benefit of shifting to pallet pooling is cost-effectiveness. Compared to buying pallets, pooling offers better value for money and it is less risky and a flexible choice.

● Reduce chances of loss of goods

Single-use pallets can be cheaper compared to pallet pooling services. However, when you choose a pallet service provider for your business, you need to consider probable risks. The first thing to be considered is the quality of pallets and the maintenance aspect. A poor-quality pallet can lead to damage and deterioration during storage or transportation.
For example, you send a product consignment to the customer, and the pallet gets damaged, spoiling the product inside. You will need to fulfill the order by sending additional products. The customer will pay only once, and you will bear the cost. On the other hand, when you use pallet pooling, you will get access to a wide array of excellent quality pallets that reduce the risk of damage.

● Non-financial cost of using single-use pallets

The financial implications of using single-using pallets will be witnessed at each stage of the supply chain. Storage and transporting heavy loads are challenging owing to the fragile nature of single-use pallets.
In addition, the pallet specification of single-use pallets fails to match the production standards, leading to lost time, increased risk of accidents in warehouses, and damaged goods. It affects the productivity of the supply chain.

● The exchange system also comes with a hidden cost

To avoid the issues with single-use pallets, you might consider the exchange pallet system. They are made from better quality woods and nails, which gives them a longer lifespan as they are made to reuse. It offers money-saving benefits and makes for a better choice than single-use pallets.
However, an exchange pallet system can also come with some hidden costs, such as:
- Cost of regular pallet checks by own staff
- Cost of repairing and replacing damaged pallets
- Cost for pallet storage

● Pallet pooling has no cost of storage and maintenance

Owning and storing pallets can lead to high costs as you need good infrastructure to stock the pallets in better condition. It can be among the most expensive expenses of your supply chain system. Choosing pallet pooling can help in getting rid of these costs.

● No more empty transportation miles

For any business, the unnecessary cost can be worse than hidden costs. After the goods are delivered, the pallets return empty and add no value. Pallet pooling solutions help optimize the customer’s logistics flow and prevent empty returns.

● Right pallet supplier

It can be difficult to find the suitable pallet supplier but outsourcing the pallet management frees you from the job of optimizing your supply chain.

Considering the benefits mentioned above, choosing wooden pallet pooling can be one of the wisest decisions. However, it can help save time and money, and you need not worry about maintenance and storage.