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Reduce Costs
Reduce Costs through Better Pallet Management
- Simplify your program
Pallet programs that require tracking and accounting take you away from your job; supplier administration costs are charged as fees.
- Minimize the number of vendors you use
Reduce the costs of pallet sourcing and leverage your company's total spend by using one national vendor at all facilities.
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Minimize your use of leased pallets Eliminate lost pallet and out of network fees (not to mention the cost of administration) by purchasing pallets instead of leasing them.
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Demand JIT delivery Pallet storage wastes valuable warehouse space and leaves you open to pallet theft. Choose a vendor who offers JIT delivery.
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Beware the extras RFID tags and other high-tech extras can be a great asset to your operation, but only if you need them. If not, they add cost without any value.
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Use lighter pallets A greater number of lighter stringer pallets will fit on a trailer than block pallets, leaving room for more product. Fewer deliveries are needed and less fuel is consumed.
- Track costs and identify best practices
By monitoring pallet costs (and revenues) across all locations, you can identify best practices to implement company-wide.
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Select a vendor with consistent, year-round reliability When your supplier doesn't have the inventory you need, you take time away from operations to find it. Or, you waste valuable warehouse space if forced to store large volumes of pallets to ensure you have enough when you need them.
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Select a vendor who can service all of your locations Reduce sourcing costs and leverage your company's total pallet spend by using one national vendor at all of your locations.
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Select a vendor with the expertise to help you design the right program The help of an experienced pallet expert can save you time and reduce your costs by accurately assessing your supply chain needs and finding opportunities for efficiency.
IFCO White Wood vs. Pallet Rental Cost Comparison
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Supply Chain Cost Comparison
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Pallet Rental
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IFCO
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| Avg. Trip Cost/Purchase Cost (to supplier*) |
$ 4.25 |
$ 5.00 |
| Other Costs (lost pallets, NPD charges, admin, etc.) |
$ 0.96 |
-------- |
| Sort Cost (to Retailer) |
$ 0.25 |
$ 0.25 |
| Return Freight Cost (to Retailer) |
$ 0.25 |
-------- |
| Asset Value after Use (to Retailer) |
-------- |
$(1.50) |
| Net Cost to Supply Chain |
$ 5.71 |
$ 3.75 |
*Note: The "average" pallet rental trip cost can be significantly higher when NPD, lost pallet, administration and other fees are included.


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