Smart Stack: Pallets Load Up Innovation

Pallets are ubiquitous in the supply chain, though their impact is not always apparent. “Pallets literally move almost everything we eat, drink, wear, use, or consume daily,” says Alison Zitzke, market manager, plastic reusable pallets, ORBIS Corporation.

“Many people do not think about how their products get to them or to the stores, but pallets are the critical piece in almost every supply chain,” she adds.

About 95% of worldwide industrial and consumer goods travel on a pallet at some point in their lifespan between manufacturing to distribution to the end consumer. “In effect, the entire supply chain is built around the pallet,” notes Jeff Pepperworth, president and CEO of iGPS Logistics.

“Trucks, trailers, and TEU (twenty-foot equivalent unit) shipping containers, as well as automated logistics facilities, are all configured to accommodate the standard 48-foot by 40-foot shipping pallet,” Pepperworth notes.

This long-time shipping staple is now evolving. The pallet sector is currently focused on “meaningful innovation,” says Yemisi Bolumole, the Ryder professor of supply chain management at the University of Tennessee.

“When pallet manufacturers innovate, it’s not just about pallet material—they’re also rethinking how pallets are cycled through the system,” Bolumole says. “Now, the focus has expanded to how we can efficiently load and stack pallets, both in warehouses and, more importantly, on trucks.”

Constant improvements in material-handling technology require pallet design to keep pace with its own innovations. “This is why pallets can now be accessed from four directions instead of two,” Pepperworth says.

“And it’s why you may have moved one pallet with an automated jack 10 years ago, but now you can move eight,” he adds. “There will also be an increased focus on weight. Identifying ways to make pallets lighter not only helps move more product and cube out trailers more efficiently, but it also means that less fuel is being consumed per pallet during shipping, which cuts down on the industry’s carbon footprint.”

Gaining Actionable Insights

In today’s pallet marketplace, it is important to be able to use technology, including AI, to be predictive and to understand and anticipate pallet supply and demand. At the moment, however, pallets are not widely viewed as assets that can drive their own data streams. That is changing.

“Pallets can give us actionable insights about consumer behaviors,” says Pepperworth. “Because they prioritize speed and convenience, consumers are more accustomed to seeing pallets in the aisles at retailers rather than only seeing products on shelves.

“The pallets can tell us how long a product has been on display, how frequently it’s selling, and how frequently the brand team is restocking it,” he adds. “Tomorrow’s supply chain will be even more data-driven and intuitive as smart pallets are more effectively put to use.”

Looking ahead, more innovations will follow as pallets take their rightful place as critical assets that are closely accounted for in overall supply chain management.

Ever since pallets were widely adopted in the shipping industry, they had largely been treated like any other disposable supply—similar to stretch wrap, tape, or labels. They serve their purpose, get used, and are then replaced without much thought.

This traditional approach is shifting, however, toward a more managed and strategic use of pallets. The rise of AI creates growing potential for a more data-driven approach, offering improved traceability and visibility. Rather than simply enabling shipping and then disappearing from view, pallets could become assets that are tracked and optimized throughout their lifecycle.

Pepperworth agrees that while pallets were once just basic platforms for moving goods, advances in technology are shifting the industry’s focus toward the growing importance of smart pallets.

“Imagine a pallet arriving at a fully automated facility where there is no human present to receive the pallet or sign a bill of lading,” Pepperworth says. “In that type of environment, an automated guided vehicle is the receiver. So the pallet needs to be able to tell the robot what it’s carrying and how much.”

Today’s smart pallets have that capability. “The speed at which supply chain technology is advancing will enable the pallet to become an increasingly formidable asset in the supply chain,” he notes.

iGPS Logistics: Smarter Pallets for a Greener, Automated Future

In today’s data-driven supply chain, tracking assets is more important than ever. That’s why iGPS Logistics makes traceability a priority for its plastic pallets.

“Not only is every one of our pallets equipped with RFID tags, but we also have tens of thousands of pallets fitted with trackers that can help us set up geofences to find pallets that have gone outside our network,” says Pepperworth of iGPS Logistics, a Florida-based company that provides plastic pallet pooling solutions throughout the United States.

“Due to pallet density and the fact that pallets move in groups, every trailer we ship typically has at least one GPS tracker in it, which helps us keep a close eye on our full inventory,” he notes.

iGPS customers are highly focused on keeping their manufacturing lines running at all times. For that to happen, pallets have to strengthen the process rather than hinder it.

Wood pallets are no longer the ideal asset in many automated environments, Pepperworth says, as they are prone to breakage and can shed nails and splinters. They also can absorb moisture, which impacts their size and weight. Plastic pallets are better suited for automation, he adds.

“If you look through the lens of a ‘lights out’ facility with few manual human elements, you need an asset that integrates with those automated systems and that has less potential to jam equipment,” Pepperworth says.

In a typical load of wood pallets, around 5% are unusable, creating a built-in inefficiency, he notes: “Because of the consistent design and structure of our plastic pallets, our expectation is that 100% of the pallets we send to a customer will be ready for use, rather than 95% like some wood suppliers.”

“We also see the overall length of a supply chain transaction shortening,” Pepperworth says. “There was a time when a company might place an order for pallets and expect a one-week turnaround, but now it’s a few days or less. Our focus is on making as many pallets available as possible.”

The largest component of any company’s carbon footprint is its supply chain, so a company that strives to improve its environmental sustainability metrics should have pallets as part of their focus.

That sustainability has been baked into iGPS Logistics’ mission since its inception, Pepperworth notes. The company’s pallets are light so they consume less fuel during shipping and put less wear and tear on trucks and automated equipment. In addition, the ability to recycle pallets, rather than send them to landfills, “is a huge part of the sustainability equation,” he says.

“Our plastic pallets are recyclable, and we are using recycled resins in the manufacture of our pallets,” Pepperworth says. “With each new generation of the iGPS pallet, we have been able to make the pallet lighter while still maintaining the necessary standards for durability and load capacity, so I expect that we’ll be able to continue this trend in future generations of our pallet.”

ORBIS: Boosting ROI With Reusable Plastic Pallets

Companies that use pallets are paying more attention than ever to their return on investment, and that is leading some to weigh the return on plastic pallets versus wood ones.

There are keys to companies boosting their ROI when adopting a reusable asset, such as plastic pallets, which can be more expensive upfront than an expendable option, notes Alison Zitzke, market manager, plastic reusable pallets, ORBIS Corporation. Fortunately, ORBIS has services in place to help clients who are converting from wood to plastic, she says.

For instance, it is crucial that users properly care for plastic pallets to take advantage of their benefits.

“Training employees on proper use of the product is an important part of change management when switching from wood,” Zitzke says. “ORBIS has a dedicated team to help with education and training on the features and benefits of pallets as well as proper use in the supply chain.”

Many customers view the conversion to plastic pallets to be a significant capital investment that could compete with alternative capital growth. They also worry about the loss or damage to a more expensive asset. For that reason, ORBIS provides scalable asset-management services and financing solutions that can solve both concerns.

In fact, ORBIS Commercial Services provides financial solutions that allow customers to achieve optimal financial statement, balance sheet, and cash flow results, while achieving customer return on investment objectives through the conversion process.

“This approach allows us to efficiently deliver the cost savings related to system uptime,” Zitzke says. “Lowering product damage and equipment downtime, and focusing on the longevity/turns that come out of a plastic reusable asset are key to recognizing cost savings to their fullest.”

ORBIS provides pallet solutions for every need. For example, ORBIS offers customizable features such as open or solid decks, various heights, options with or without lips, multiple colors, and patented molded-in frictional elements that reduce slippage—on products, fork tines, and stacked empty pallets—compared to traditional wood designs.

“What sets ORBIS apart is our ability to recommend and implement the best pallet for the application, at the most competitive price, rather than limiting users to a finite pallet selection that covers broad applications,” Zitzke says. “ORBIS caters to both the retail supply and automotive markets.”

Longer Lifespan

Zitzke emphasizes that plastic pallets such as those offered by ORBIS come with a significantly longer lifespan than their wood counterparts.

“ORBIS’ Odyssey® family of pallets lasts over 400 turns in a third-party lifecycle analysis vs. a standard wood pallet at 11 turns,” Zitzke says. “The value of the asset over time is what helps create value with reusables vs. expendable packaging.”

It also makes them more sustainable. “Reusable plastic pallets, which are fully recyclable at the end of their service life and often are made of recycled material, can help boost sustainability metrics and support a long-term environmental focus,” Zitzke says. “Using packaging lifecycle assessments to compare reusable and single-use packaging, we help companies calculate the impact reusable packaging can have on the environment.

“Using these assessments to compare reusable and single-use packaging, ORBIS applies data-driven analysis to help customers reduce their overall environmental impact in terms of greenhouse gas emissions, water, solid waste, and energy usage,” Zitzke says.

PalletTrader: Solutions Simplify How Pallets are Bought and Sold

A critical part of the success of PalletTrader, a digital pallet marketplace and fully managed pallet solution, is that its offerings are completely neutral, according to Jessica Dzugan, vice president of technology for the New Jersey-based company.

“Our offerings are focused on meeting clients where they are and providing flexible solutions to meet their needs,” she says. For example, in many cases clients want to keep their long-term supplier relationships, but they also love the visibility and seamless management that PalletTrader provides.

“We can simply funnel those incumbent suppliers into our routing guide and tender process, allowing customers to get the centralized management solution they desire,” Dzugan says. “This will provide the visibility they need, but still maintain the relationships they have.

“Then, if an incumbent supplier cannot fulfill an order, or a supplier’s pricing increases, we can quickly leverage the marketplace to fulfill the customers’ needs, guaranteeing the supply of pallets at competitive pricing.”

The strength of that “neutrality” also can be seen in PalletTrader’s tech-enabled sell-off program, available under its fully managed offering.

Many sell-off programs can be “very gray,” Dzugan says. “It can take weeks for sort counts to be submitted, reporting and specification assessments can be inaccurate, and the funds can take a long time to collect.

“Also, for larger organizations with multiple locations, it can be a daunting task to roll up all the data to see a holistic network view and the cost benefit—or sometimes a missed opportunity—of such a program to the organization,” she adds.

“Our sell-off program provides clear pallet specification and sorting guidelines, gives clients immediate transparency to their overall operating network, plus individualized real-time site activity and sustainability metrics,” she says. “It also automates processing of the funds.”

Additionally, PalletTrader’s program provides access to pallet vendors of all sizes, giving clients the ability to diversify their supplier network to work with both small businesses and larger companies.

With all its features and offerings, PalletTrader continues to focus on simplifying the way pallets are bought and sold. Services center around providing users with seamless order management, on-demand visibility, competitive prices, and assuring pallet supply across the nation. PalletTrader, which launched as a self-service marketplace in October 2022, then evolved to fully managed solutions, is expanding into Canada later in 2025 and is working on a Pallet Pricing Index, to be released in early 2026.

In addition, PalletTrader is assembling the results of its semi-annual Q2 2025 Pallet Market Survey. The market report is compiled by speaking to key stakeholders across the pallet industry. If you would like to participate in the next survey, or receive a copy of the report, contact support@pallettrader.com.

Delivering Value to Buyers and Suppliers

“PalletTrader’s mission has always been to simplify how pallets are bought and sold by providing familiar technology to a well-deserving industry,” Dzugan says. “We have strengthened the overall pallet marketplace with our nationwide digital supplier network.

“Let’s face it, the supplier network on the marketplace is the nucleus to all of our services today,” she adds. “It was imperative to build a platform that delivers value on both sides, not just to the buyers but also for the suppliers.

“Our company’s founder has been in pallet management for more than 40 years, so we have leaned into that history and industry knowledge, and listened to what the suppliers wanted,” Dzugan says. “We continue to strive each day to bring opportunities and efficiency to all.”