Compared to purchasing materials or ingredients where exacting specifications are involved, buying recycled GMA pallets can seem like a simple exercise. And for pallet purchasers equipped with a basic understanding, recycled pallets can offer considerable value versus other options. On the other hand, buying used pallets can lead to needless headaches if you don’t take note of a few of the nuances involved. Here are some points to consider toward having a successful recycled pallet procurement program.
1. Not all recycled pallets are the same.
While this point may be obvious to veteran pallet buyers, it is worth reinforcing for newcomers, or even to veteran buyers who have been in a comfortable relationship with a single provider but have now decided to test the waters with different pallet suppliers. A GMA-style pallet has a length of 48 inches and a width of 40 inches, but that is where things start to become more complicated.
Pallets can be hardwood or softwood, and lumber dimensions and placement configurations can vary. Various repair elements such as steel repair plates, companion stringers or plugs (extra partial stringers) come into play. The number one thing to understand is that all GMA pallets are not the same, and that you need to reach a clear understanding with the vendor about what you need for your application.
2. Pallet names and grades may not tell the whole story.
Basic recycled pallet terminology seems easy enough. A Grade A (#1) pallet is normally one that looks similar in appearance to a new pallet, except for showing wear and discoloration. It typically allows stringer repair plates but does not allow companion stringers or plugs (extra partial stringer). A Grade B (#2) pallet allows plates, as well as a specified number of companion stringers and plugs. There are premium grades for used pallets in near new condition, such as AAA or Club Grade. Recycled pallet grades are not always uniform, however. A quick look online search for example, shows some vendors listing a Grade A pallet allowing one or two companion stringers. Don’t rely on just the pallet grade in your procurement process. Be sure to seek clarification on the details and consider those differences in comparing quotes.
As Paul Messinger of The Pallet Alliance told me a few years ago, “It’s absolutely true that suppliers grade their pallets in various ways, even suppliers in the same regions, or even on the same block! So, yes, it’s absolutely necessary to get clarity on the grading process. Though you may not, realistically, be able to travel to each vendor’s site that you are talking to, it’s extremely important to develop a vocabulary that gives you a way to communicate and clarify how each individual vendor (and customer) views their grading process.”
3. Remanufactured pallets can provide custom pallets at a lower price than new.
As Tyson Steffens of The Pallet Alliance noted recently in an article, remanufactured pallets, built from recycled components, can provide a custom pallet, built specifically to meet a customer’s needs. “This approach,” Tyson noted, “keeps the costs down and scores well with corporate sustainability programs.” Remanufactured pallets can be attractive for building pallets requiring a particular deck board configuration to best serve unit load design (such as deck board positioning to support box corners), or for custom pallets smaller than 48×40-inch. “The shorter the board,” Tyson noted, “typically the less value it holds.”
4. Buy ISPM-15 compliant recycled pallets only from certified suppliers.
While you can buy pallets with HT stamps from any recycler, and arguably, it would be hard to purchase recycled GMA pallets in any quantity without some stamped pallets, the U.S. Department of Agriculture (USDA) has advised pallet buyers to only purchase pallets with export in mind from certified suppliers. Additionally, USDA recommends taking the time to learn the basic ISPM-15 stamp requirements, such as the complete obliteration of old markings when pallets are retreated after repair. As Timber Products Inspection reported in its March 2017 newsletter, proper obliteration requires all four parts of the ISPM-15 mark (IPPC “wheat” mark, agency trademark or name, border, and information related to country, facility and treatment type) to be rendered indiscernible. If you purchase pallets with multiple company or country ISPM-15 stamps, or where old marks have not been completely obliterated, you may end up with your load detained at an international port of entry.
5. Know your recycler.
If your business can be adversely affected by pallet errors or mishaps, knowing your recycler is critical. Purchasing staff (national, regional or local) rarely take the time to go and look at a recycler’s facility or facilities on some regular interval. Customers perform all kinds of quality checks on pallets shipped into them on their docks but… why not touring the actual recycler location?
Reed Esarove, corporate sales for PalletOne Inc., commented, “Recyclers are being asked to do more and more. Customers want competitive pricing for higher quality at more extended payment terms. It is important to know if the recycler you work with has the ability to really meet your needs, especially for rush orders or can handle operational interruptions, such as equipment failure, weather, etc. If you know the staff at your recycler by name, it can be easier to navigate any challenges that arise, and you are also familiar with their true capabilities.”
And if you decide to work through a broker or national management company, Esarove suggests that you still insist on the right to inspect recycler locations. Also, inquire about what processes the broker follows to ensure quality and order accuracy? How long has the recycler worked with the broker? What type of control and monitoring does the broker have over the finished product?
Esarove added, “If you are working through a third party, you want to make sure that your contact truly understands your needs and can communicate them to local recyclers who will do the work. Never assume anything. Ask questions. And don’t be afraid to insist on the quality that you need.”
6. Don’t forget about service.
Finally, it is worth a reminder that when you buy pallets, new or used, there is more to the equation than price and specification. To expand on the discussion about clear lines of communication, don’t forget to include considerations about the quality assurance process, delivery times, delivery vehicle requirements, reliable supply and other factors. Attention to these details can keep your supply chain moving smoothly or leave it spinning its wheels.
