Pallet supply chain management

By Staff -- Modern Materials Handling, 4/1/2000

Companies buying pallets today are always looking for value. They seek pallet makers who can provide diverse footprints, returnable products that offer lower cost-per-use, and pallets that are easily repairable. Reverse logistics, environmental issues, and leasing programs are also practices users find important to their operations.

Pallet manufacturers need to be aware of these customer trends to succeed in today' s competitive marketplace. By focusing on the whole supply chain, they can better serve their customers and improve their bottom line, according to C. John Langley, Jr., professor of logistics at the University of Tennessee.

Langley spoke at the end of February to the annual gathering of the National Wood Pallet and Container Association meeting at Marco Island, Fla.

He outlined the basic supply chain for pallets as primarily business-to-business products, with wholesalers, rental firms, and direct distributors as the leading customers.

Users benefit when manufacturers share information on product design, order status, product demand, and inventory with the various people along the steps of the supply chain. To do this, however, companies must be more open.

Internet and e-commerce involvement are additional ways that companies can improve order management and value to their customers. Langley says that 32% of businesses expect their online sales to increase at least 800% over the next two years.