What is Pallet Pooling and How Can It Benefit Your Business

Pallet pooling has become a common concept for businesses today. Just like carpooling, pallets are pooled between different companies. Pooling is simply the sharing and reusing of pallets. The pallet pooling model works on the concept of the circular economy. There is no need to buy, sell or exchange the pallets, they are simply rented or outsourced from the pallet management company. Pallets can no longer be considered as a commodity – but rather a service!

There are various pallets in the pooling system, such as IBC containers, foldable bins and many more. Businesses get to choose the pallet based on their needs and the type of products they deal in. Pooling the pallets is an efficient and sustainable substitute for the conventional pallet exchange system. The pallets get shared and reused within a network of manufacturers, producers, retailers, distributors, transports and service centres.

Benefits of Pallet Pooling System

▪ There is no hidden cost
When pallets are purchased, there are several hidden costs associated with it. You pay not only for buying the pallets but also for hidden costs such as exchanging them, repairing them, disposing of them, keeping sufficient stock, organising returns and much more. However, renting or pooling solutions enable you to pay only for the pallets used. Businesses are freed from the high costs and stress of managing the pallets and it allows companies to focus on their core business instead.

▪ Flexibility and availability
The pallet pooling system can work successfully when supported by a strong network. As more companies join the programme, the process becomes more efficient. Businesses will also be able to benefit from the availability of a variety of pallets as the density or level of the network increases. The network becomes capable of responding more rapidly to the ever-changing needs of a business. Whether it is an unexpected surge in demand or a seasonal peak, companies will never face a shortage of pallets.

▪ Automation of the process
When the pallets are exchanged, there are chances of inconsistency in the quality. It can lead to damage to the product or delivery refusals. This means a need for more repairs or replacements. In a pooling system, the used pallets are collected and transported to a special service centre.

The pallets get inspected and repaired, if necessary, to meet the quality standards. This ensures that the network consists of only standard pallets of good quality, which are appropriate for automation.

▪ Less impact on the environment
As the pooling pallets get shared as well as reused, they enjoy a longer lifespan than the exchange pallets. The result being that less wood and other natural resources are required for manufacturing new products. Waste production is also decreased. Pallet pooling can be considered a sustainable system owing to its circular model. With pallet pooling, it achieves sustainability goals and also reduces the environmental impact.

▪ Easy shipping and receiving
Owing to the ease of shipping, several e-commerce platforms prefer pallet pooling services. When opting for pallet pooling, there is no requirement to ship the product on exchangeable or disposable pallets. High-quality and durable wooden, plastic or other material pallets are used instead.

▪ No more pallet exchange
Pallet exchange can become a thing of the past as there is no requirement to buy, exchange or store them. The extensive network enables you to leave the pallets at the destination and, with the help of an online tool, access the location of other pallets in the system. Pallets get delivered to the nearest service centre where inspection and repairs can also occur. From the service centre, the pallets can be delivered again to local businesses.

▪ Cost-efficient service
With the help of a pooling system, the need for return transport is eliminated. This allows for cost savings, decreases in truck kilometres and reduces CO2 emissions. As there is no requirement for pallet exchange, it also reduces the need for difficult conversations between suppliers and customers about lost pallets, the quality of the pallet, complicated administration and outstanding balances.

▪ Standard pallet management
Owing to the stringent quality control at the service centres, the pooling pallet quality remains top-notch and thus the risk of product damage or returns also decreases. The consistent dimensions of the variety of pallets make them suitable for the automated process.

Summing Up
For any business that requires goods to be transported, pallets are one of the most important elements to facilitate this. The safe movement and storage of items is critical to their successful arrival at a destination. Any failure in the quality or availability of pallets will directly impact the bottom line of the business that relies on them. Therefore, choose a quality pallet pooling service provider that offers a straightforward, reliable system of various packaging options, such as IBC containers, to meet diverse business needs.