Warehouses usually like to see inventory moving in a one-way stream from docks to customers. That goes for pallets as well. However, this may not be the best approach. In a closed loop system, pallets are returned—then recycled, repaired and used again and again.

"The program has changed our customers' perceptions of pallets and containers from an expendable product to a valuable asset," says Marc Steinberg, vice president and chief financial officer of Pallet Management Systems (www.palletnet.com). "Until recently, pallets and containers were viewed as an expense, and were routinely discarded and lost."

In fact, the company guarantees that its customers will save from 15 to 50% with its system, or they won't have to pay. The key is PalletNet, a Web-based supply chain management system that tracks, retrieves, sorts, repairs, warehouses, and returns your packaging assets.

"The purpose of pallets hasn't changed, but the applications and systems surrounding them have," explains company president Robert Steiler. "They still solve the same logistics management issues, but corporate clients are now demanding improved efficiencies."