If your business ships product, or relies on a supply chain, pallets play a large role in your operations. In fact, they directly impact the profitability of your operations. Attaining lower pallet costs, while adding value through your pallet program, are some of the best ways to raise the profitability of your operations.
The best type of pallet to use in this journey is the wooden pallet.
The following are the top 3 strategies you can use to lower pallet costs when sourcing wooden pallets:
- Make the Switch to Recycled Pallets
- Take advantage of Pallet Management Programs
- Partner with Nationwide Pallet Suppliers
Lower Pallet Costs Strategies
1. Make the Switch to Recycled Pallets
If your business is currently exclusively sourcing new pallets, the savings of making the switch to recycled pallets can considerably lower pallet costs.
Kamps Pallets customers that made the switch to recycled pallets have saved up to 30% compared to new pallets.
They are also much more environmentally friendly and promote recycling. While these traits will not directly impact your cost, they can be responsible to adding value to your brand and supply chain.
2. Take advantage of Pallet Management Programs
Pallet Management programs may allow your business to directly cut costs on a pallet-by-pallet basis because of the introduction of refurbished pallets. However, the primary benefit is the impact these programs make on the profitability of your supply chain by making it more efficient and easy to manage.
Depending on your supplier, the structure of the pallet management program may vary.
3. Partner with Nationwide Pallet Suppliers
If your business has multiple locations, partnering with a nationwide supplier can help ensure you are receiving the most cost effective solutions on a national scale.
Not only can finding pallet suppliers on a local level be time-consuming for your staff, it can also cause variance in pricing, quality of service, and quality of products. These are all factors that can eventually drive up the cost of your pallets overall.
These pallet suppliers can also provide your business with pallet management programs on a national level – allowing you to further improve your pallet sourcing program – and overall, lower your pallet cost.
It is important to remember that creating a more profitable pallet sourcing system for your company may not always be directly reflected on a per pallet cost analysis.
Initiatives such as switching to only recycled pallets will certainly cut pallet costs, but initiatives like pallet management programs raise your overall profitability by adding value and improving efficiency.
At the end of the day, your main goal should be to raise the profitability of your supply chain by strategically adding value and getting lower pallet costs with your innovative solutions.
If you would like to learn more about how Kamps Pallets can help make your wood pallet sourcing initiatives more efficient and cost effective – please fill out a quote
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