How to Navigate The Current Pallet Market

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As society continues to reopen, the pallet market is continuing to experience a shortage in the supply of wooden pallets and longer lead-times.

As your pallet experts, Kamps has outlined three key initiatives your business can implement to help mitigate the effects of the current pallet market and similar conditions in the future.


Jump to our recommended initiatives


The Importance of Pallets in Shipping


Pallets are an essential aspect of shipping. They are the unsung hero in the supply chain, and protect and contain products as they are moved along the supply chain. Pallets are a necessity for shipping and moving large quantities of products efficiently.

In the pallet industry, the motto “Pallets Move The World” is often used. We are now seeing just how true that statement is, with some delays across various industries being traced back to the lack of pallet inventory.


Factors Currently Influencing The Pallet Market


Currently, the pallet market is being influenced by six key factors.

  • Increased Lumber Pricing
  • Increased Fastener Pricing
  • Increased Labor Costs
  • Increased Transportation Costs
  • Pooled Pallet Shortage
  • Increased Demand on Recycled Pallets Market

All of these key factors are working together to not only affect pallet pricing and lead-times across the board, but also increase demand for recycled white-wood pallets – a product that is often looked at as a cost-effective solution.  This is, consequently, lowering the national availability of recycled pallets in the market. Now what we are seeing is the market coming around “full-circle” for recycled pallets, with demand overtaking supply and increasing the price pallet recyclers pay for used pallets (cores) and the market value of these pallets.


Our Recommended Initiatives for Navigating The Pallet Market


Align Yourself With a Reliable National Pallet Recycler


The most important step you can take during current and future market conditions is to ensure that you are aligned and sourcing pallets from a reliable national pallet recycler.

Having a reliable pallet recycler in your corner does not guarantee you will be protected from every single market condition, but it does help mitigate the effects market conditions will have on your supply chain.

As one of the most trusted pallet recyclers in the country, Kamps has had a “customer-first” approach to our operations for decades. Some of these approaches include customer-first inventory allocation and industry-leading inventory forecasting and reporting.


Plan Ahead & Communicate


Planned and prudent communication with your pallet recycler / supplier are extremely important to ensure your supply chain is protected.

During current market conditions, lead times will naturally be extended. By communicating and forecasting your demand properly, pallet companies can ensure more comfortably that your orders are fulfilled as timely as possible.

Prudent communication is also important with your own customers. Communicating with customers that products may arrive on atypical pallets; such as a different grade of pallet, size, or overall composition will go a long way.



Innovative Solutions


Innovative solutions such as shipping on pallets of atypical size or overall composition may be a short-term solution to the current market conditions.

A long-term solution may also be possible by looking at new pallet programs and consolidating your pallet operations under one national organization.

For example, Kamps repair-and-return and on-site programs optimize the amount of pallets your organization re-uses. Depending on your operations, locations, and supply chain, these programs from Kamps can also reduce order to fulfillment time significantly. National pallet recyclers, such as Kamps, also have access to vast resources that can help mitigate the effects of inventory shortages.

Fuad Hasanovic

Fuad is the Brand Management Specialist at Kamps. He is experienced in Thought Leadership Marketing and Blogging, and holds an MBA from Davenport University.


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