What constitutes the perfect pallet? For different industries and at different points in their development, a perfect pallet can mean different things. For a shipper sending a product internationally, it is a pallet, above all else, that will pass the appropriate phytosanitary entrance requirements for that country so that wood borne insect pests are not inadvertently introduced. For a shipper sending goods to a major big box retailer with strict pallet inspection policies, a perfect pallet is one that, at a minimum price, guarantees that the load will be accepted by the customer without repalletization charges being assessed.
At the other end of the spectrum, any type of pallet might be welcomed versus receiving unpalletized freight. Logistics systems are rapidly modernizing, however, changing customer expectations about pallets regarding design, performance and reliability. The bar is being raised through automation.
As the base of each unit load, the pallet must interact with product packaging and material handling equipment to obtain maximum material handling efficiencies. Pallets must make a positive contribution in terms of supporting the unit load while at the same time promoting the efficiency of the handling and logistics systems in which they operate. Unfortunately, many companies do not ensure proper pallet design or update old pallet designs to keep up with their ever-evolving supply chains. The failure to properly design or redesign pallet specifications can result in suboptimal material handling performance for the organization buying the pallets, or its trading partners.
The Perfect Pallet Balances Performance and Price Criteria
When developing or updating pallet specifications, pallet users must balance the functionality of the pallet within its proposed environment with economic considerations. In terms of functionality, the pallet must be strong enough to support the load and stiff enough to function in handling systems sensitive to deformation under load. Some systems have extremely narrow tolerance for sagging pallets. At the same time, a pallet buyer will not wish to over specify a pallet, which would result in needless expense. The extra expense is worthwhile when it results in prolonged durability and a lower overall cost per pallet trip or where the pallet will be used in a range of applications.
Time pressured purchasing agents may be driven to simply find the cheapest supplier for the long-established specification. Still, a better approach is to continue to invest in pallet quality until the marginal cost (MC) of a further increment of quality is just equal to the anticipated marginal benefit (MB) of providing it. If, for example, investing an extra dollar spent on a pallet today results in a reduced cost per pallet trip with a net present value (NPV) of more than a dollar, then the extra money spent on pallet quality is warranted. If the cost of heat treating a pallet is required to avoid the risk of an international load being refused entry into a country, then the pallet buyer is motivated to make that investment. Cost justification is more difficult when the benefits are enjoyed by other supply chain stakeholders rather than the pallet buyer or where benefits are harder to quantify, such as improved safety.
To consider the suitability of a pallet from another perspective, five basic interactive parameters determine how well a pallet is suited for a given application. These include strength, stiffness, durability, functionality, and purchase price. These parameters are highly interdependent, and optimizing just one of them (i.e., the lowest price) will necessarily impact the others. The balance among these five parameters will vary, depending on the specific product and distribution environments.
A Perfect Pallet for Whom?
Pallet design is not optimized when considerations about costs and benefits are too narrowly applied. Shippers of fresh produce, for example, developed pallet sizes in the 1980s and early 1990s that worked best for their cartons and handling systems. Unfortunately, non 48×40 pallets did not work best for major food retailers, who were largely standardized on the 48×40. Within a few short years, pressure was put on grower shippers to convert.
Often, pallet problems result when decision makers fail to see the big picture. Pallet buyers should try to find a balance between pallet value and pallet cost. Where the costs are “externalized” or felt by trading partners and not by the pallet buyer, the buyer may select pallets that are less than optimal. Ultimately. however, the pallet purchaser will experience the fallout in some way, such as poor customer relations or increased product damage.
Time for a Pallet Design Checkup?
The supply chain can sometimes suffer from a pallet misalignment. Keep in mind, the components of any logistics system are interrelated. If a logistics system has undergone changes to products, packaging, handling equipment, transportation mode or distribution channel then the building blocks of that system, such as the pallet, should be reassessed. The importance of aligning pallet specification to the application will take on even greater significance in the years to come as North American industry continues to transform. The growing importance of trends such as warehouse automation, robotics, e-commerce and IoT will spotlight opportunities for pallet design improvement.
In summary, the proper pallet must have the following attributes. It should:
1. Have the load carrying capacity and stiffness required to support and protect the anticipated range of loads while maintaining full functionality in the expected range of storage and handling conditions.
2. Meet the material handling requirements of shipper, receiver and other supply chain stakeholders.
3. Be durable enough to perform reliably on a projected number of pallet trips and be fully recyclable at the end of its life. (A pallet trip is considered six handlings, and a handling is considered one movement). Pallets built for durability typically are “over built” to meet the requirements of a specific application for an anticipated number of trips.
4. Contribute to the most cost-effective comprehensive logistics solution in comparison to other possible unit load base or non-unitized handling options.
The perfect pallet will:
1. Enhance current and future material handling systems.
2. Help eliminate product damage.
3. Improve workplace safety.
4. Increase warehouse and transport cube efficiencies.
5. Reduce material handling equipment and racking costs.
6. Be returnable, repairable, recyclable/ biodegradable.
7. Lower pallet costs on a per pallet trip basis.
8. Lower insurance costs.
9. Enhance customer relations.
10. Eradicate nagging and chronic pallet related problems.
Pallet Design Factors
To design the perfect pallet, it’s critical to collect essential information about the handling environment. The pallet designer needs to understand what will be loaded on the pallet, as well as how it will be handled, stored and shipped. All down the supply chain, employee, customer, and industry expectations should also be considered.
Here are the questions to ask. Many of the following steps are based on the Pallet Design System Course offered by Virginia Tech and informed by professional experience.
1. Unit Load Characteristics
• What objects or containers are being placed on the pallet?
• What are the maximum and minimum unit load dimensions?
• What is the minimum, average, and maximum unit load weight?
• Will the unit load be stabilized, and if so, by what means?
• Will the unit load include separator sheets or top frame?
• Will the product require ventilation or drainage?
2. Unit Load Support Conditions
• Will the pallet be racked at any time?
• If so, what type of racks will be used?
• What are the minimum and maximum unsupported free span, racked across the length and widths of the proposed pallet?
• What is the maximum length of time the unit load will remain in a rack?
• If stacking (bulk storage), how many unit loads high will the product be stacked?
• What is the maximum length of time the unit load will remain stacked?
• What is the maximum allowable deflection permitted in pallets and pallet components for each support condition?
3. Unit Load Handling Environment
• Will the pallets be handled using forklifts? If yes, how far apart are the forks?
• Will the pallets be handled by pallet trucks (walkies)? If yes, how long and far apart are their forks, and what is the lowered fork clearance required?
• Will the pallets be handled in any type of sling mechanism? If so, what is the width of the support bar?
• Will the pallet be used on roller conveyors? If yes, what is the range in roller diameters and roller spacing?
• Will the rolls be parallel, perpendicular, or both with respect to pallet length?
• Will the pallet be moved via a chain conveyor? If so, what is the chain width and unsupported free span between the chains? Is the pallet movement on the chain conveyor perpendicular, parallel, or both with respect to pallet length?
• Will automatic palletizers and or pallet dispensers be used in the pallet application?
• Are there any sanitation or flammability performance requirements where the pallet is used?
• What are the minimum and maximum temperatures and humidity levels to which the pallet will be exposed?
• Will pallets be manually handled at any point in the supply chain? If so, in what manner?
• In what concentrations will empty single trip pallets accumulate at end customer locations? Are there design factors that can enhance the attractiveness of pallet removal and recyclability (common sizes), return cube efficiencies (nestable) and or reuse?
• Is the pallet to be used on a returnable or one-way basis?
• If returnable, how much durability is required, i.e., what is the projected life of the application or project? Also, if returnable, what is the expected loss or leakage rate of pallets from the system?
• Does the pallet need to be identified by markings or logos to enhance marketing, pallet control procedures or to meet ISPM 15 requirements?
4. General Requirements
• What is the maximum pallet height and weight?
• Do you want the customer to return the pallet?
• If your pallet is to be a returnable type, do you want to repair it?
• Do your products require that the pallet have a solid top deck?
• Does your product and handling situation require a certain amount of bottom deck coverage and specific bottom deck design?
• Is a wing type pallet acceptable?
• Will the pallet be included in a retail display?
• Will the pallet required to have sensors, barcodes or placards affixed to them?
5. Transport Conditions
• What is the trailer size used by your transport company?
• Will the palletized unit loads be single, double or triple stacked when in transit?
• Will the unit load be stabilized when in transit and if so, how?
• Does your transport company depalletize and consolidate your product at crossdocks to improve payload or stack it on or under unit loads from other companies?
• How long, on average, will your unit loads be in transit?
• What are the temperature and humidity conditions in transit?
6. Customer or Industry Conditions
• Do your customers require a specific pallet class or type? If so, obtain the written pallet specification or an actual pallet sample.
• What type of equipment do your customers use when unloading your products?
• Will your customer return your pallets to you when empty?
• Will your customer store your empty pallets in an area that is appropriate for your reuse standards and that is secure against pallet theft?
• Will your pallets become easily mixed up or confused with other pallets?
• Does your industry have pallet standards that are mandated or preferred?
7. Government Regulations
• Due to the nature of your product are there any laws governing the material used in your pallets?
• Is there a maximum pallet weight one person is allowed to lift?
• If shipping to another country, does your pallet meet their import regulations?
Having reviewed the checklists above, how well does your current pallet match your immediate and projected needs?
Experienced vendors may have the experience and expertise to help you determine or review your optimal specification. Most larger pallet providers will use PDS (Pallet Design System™) software, available to NWPCA member companies, or products from White & Company, including Best Pallet™ and Best Load™.
One best practice is to invite a short list of select pallet supplier to perform a site audit. A pallet supplier visit can help the user get a full perspective of your handling environment, which is often impossible through simply completing a checklist. Consider that your plant, handling equipment, and supply chain are regularly evolving, which may affect optimal pallet design. Your pallet that worked flawlessly a decade ago might not be the best fit as equipment has changed over time or in the new plant your company acquired last year, as example.
Also, importantly, visiting suppliers can audit the pallet you are currently being supplied, which in some cases might vary in degree from your stated specification, the one you think you are paying for! At a bare minimum, it will allow the pallet supplier to make an “apples for apples” bid on the existing pallet being used.
Ultimately, designing the perfect pallet is a collaborative process. It may involve several functions within your company, including manufacturing, warehousing, retail, transportation, procurement, safety and health, sustainability, and perhaps even information technology where pallet tracking technologies are employed. Beyond your company, collaboration with your pallet supplier and with external supply chain participants will help ensure that you select the perfect pallet for your company.
Editor’s Note: This article is an excerpt from the book, Pallets: A North American Perspective by Rick LeBlanc and Stewart Richardson. The authors recently released a revised version to commemorate the 20th anniversary of the book. The Kindle edition is available for only $29.99, and a paperback print copy can be bought for $39.99 from Amazon. Check out the sample and order at https://tinyurl.com/2xnvytk3.
