Susan Lacefield has been working for supply chain publications since 1999. Before joining DC VELOCITY, she was an associate editor for Supply Chain Management Review and wrote for Logistics Management magazine. She holds a master's degree in English.
Pallet damage can add significant cost and waste to your supply chain. And it's not just the cost of repairing or replacing the pallet itself; you also have to factor in the expenses your company will incur if the product loaded on that pallet is damaged as a result.
"Whenever the pallet is damaged, most of the time, the product on top is also susceptible to damage," says Skip Miller, vice president of global quality for pallet pooler CHEP. "Even if it's not damaged at the same time the pallet is, it's more susceptible to damage during the rest of the trip through the supply chain."
And the damage to the pallet doesn't have to be serious in order to create problems down the road. According to Laszlo Horvath, director of the Center for Packaging and Unit Load Design at Virginia Tech, even minor damage can compromise the integrity of the pallet, which can lead to product damage.
So what can you do to reduce pallet damage? For starters, you can look into products designed to protect pallets—like the PointGuard, a plastic shield that screws onto the ends of a wood pallet. Another option, Miller notes, is to invest in forklift attachments that act as energy-absorbing bumpers, like the Blue Guardian or the Product Protector.
But to truly reduce damage, you need to start with the basics: choosing a better pallet and doing a better job of training your employees.
7 reasons to protect your pallets
Launching a pallet protection program might seem like overkill. But those who've done it say it can have a big payoff. Here are some of the potential benefits:
Reduced costs. If you reduce pallet damage, you lengthen the life of your pallets and cut down on the number of units you have to buy or rent.
Decreased risk of contamination. Broken pallets (especially chips, sawdust, and splinters from wood pallets) can contaminate your product and/or workplace.
Improved safety. Employees can cut or injure themselves on pallets with broken pieces or protruding nails.
Reduced product damage. Pallet damage often leads to product damage, either at the same time the pallet breaks or further along in the supply chain.
Lower repair costs. United Pallet Services estimates that it costs $5 on average to fix a wooden pallet.
Improved operational efficiency. Repacking, repalletizing, and cleaning up after a pallet has been damaged adds time (and cost) to your supply chain.
Reduced risk of equipment damage. A damaged pallet can damage or jam automated equipment, resulting in repair costs and downtime.
INVEST IN A BETTER PALLET
It may seem obvious, but if you want your pallets to last longer, you have to choose sturdier units in the first place. But how do you know if you're buying a well-made pallet? You can start by making sure your pallets meet the standards laid out by MHI and the National Wooden Pallet and Container Association (NWPCA).
As for what else you can do, the industry experts interviewed for this article offered some additional advice on pallet selection. What follows are some of their recommendations:
Choose pallets with strong blocks. According to Horvath, most pallet damage occurs when a forklift driver or pallet jack operator hits the pallet's blocks with the machine's tines while trying to enter the pallet. Reinforcing the outer blocks of a wood pallet can extend the unit's life by four times. Reinforcing the middle and inside blocks in addition to the outer ones can lengthen the life of the pallet by a factor of 10 to 15, he says.
Block strength is also an important consideration when buying plastic pallets. Horvath advises companies to be wary of plastic pallets that don't have solid blocks. Some plastic pallet makers are experimenting with blocks that have an outer shaft or shell and an inner shaft. But if the inner shaft or core of the block is compromised, it can reduce the stiffness of the top deck, causing the weight of the load to be unevenly distributed. This can result in product damage, he explains.
Horvath also urges companies to exercise caution when buying injection-molded plastic pallets made of two pieces that snap together. When buying these types of pallets, make sure they don't snap together in the middle of the block, Horvath advises. "This can reduce the durability of the plastic pallet to the same level as a wood pallet," he says.
Don't scrimp on nails. If you use wood pallets, make sure they use good quality nails. "Nails [account for] 5 percent of the cost of the pallet and 50 percent of the durability," says Horvath.
Look for strong leader boards. With wood pallets, Horvath also recommends choosing units that have one or two leader boards (the boards at the front of the pallet by the entryway) right next to each other that are six inches wide and made of a hardwood. "This increases the durability of the pallet significantly," he says.
Consider using pallets with beveled entryways. According to Curt Most of the plastic pallet maker Orbis, a beveled entryway is more forgiving than a square one. That's because if the forks hit the beveled edge, they're more likely to shimmy over it and not puncture the block.
Choose the right pallet for your application. Different types of pallets work better for different applications, says Most. Questions to consider include: What type of product will be on the pallets? How do you plan to use them? Will they be stacked on the floor or racked? Do they have to be compatible with automated equipment in your DC? Do you anticipate automating your operations in the future?
A good pallet supplier can help you choose the right pallet. For example, many wood pallet providers will perform a pallet design system (PDS) analysis for their customers using software licensed by the NWPCA, says Callen Cochran, who handles business development for United Pallet Services Inc. This analysis can tell you how much weight the pallet can hold if racked or stacked, the projected life of the pallet, and how many trips the pallet can be expected to make before it needs repairs. Pallet makers can also use the software to demonstrate the effect a slight design change could have on the strength and durability of your pallets.
Choose a pallet that is not too customized or that requires special handling. "Make the pallet load as universally acceptable as possible," advises LeRoi Cochran, director of supply chain solutions at pallet recycler IFCO. Otherwise, you'll have to rely on workers at the warehouse to remember that your pallet or unit load requires special treatment, he explains.
As for what that might involve, it varies with each case. For example, if the pallet is carrying fragile items, it should be strengthened to provide the added protection needed by the product. If it's used for oversized products, you'll want to make sure the pallet is large enough that nothing hangs over the edge.
If you can't design the pallet to avoid the need for special handling, consider segregating these products and pallets in a separate section of the warehouse to reduce the chance of handling mistakes, Cochran adds.
HANDLE WITH RESPECT
Preventing pallet damage isn't just a matter of picking the sturdiest and most suitable units, however. You also have to make sure your employees are handling them correctly. No matter how tough your pallets, if your workers push them across the floor with a forklift truck, or fail to insert the forklift or pallet jack tines all the way, or throw them around, you'll still end up with a lot of damaged pallets in six months' time. "Whether it's a $24 wooden pallet or a $65 plastic one, it will last a lot longer if more care is taken in the way you pick them up and use them," says Rex Lowe, former president of plastic pallet pooler iGPS.
Industry experts agree that most pallet damage is caused by forklift trucks or pallet jacks. So you'll want to make sure that these equipment operators in particular are well versed in correct material handling procedures. (For a list of dos and don'ts for forklift operators, see sidebar, "Pallet handling tips for forklift drivers.")
In many cases, your pallet vendor or pooler can provide you with training materials like videos and posters or come in and talk to your employees. (Or you can simply run a search for "proper pallet handling" on YouTube.) Miller recommends using videos as part of the training for new hires as well as posters for reminders and reinforcement.
It's not just the workers on the warehouse floor who might need some instruction on the rudiments of pallet handling. Horvath recommends making sure that whoever buys pallets for your company understands the basic principles of unit load design. He says he's seen too many cases where companies noticed a sudden jump in pallet damage and unit load failure after the purchasing department switched to a cheaper pallet in an effort to cut costs.
Although often taken for granted, pallets nonetheless play an important role in the supply chain—protecting the product. They can't do that job, however, if they're getting damaged themselves. Companies that start with a well-made pallet, educate their employees on proper handling, and use pallet protection products as appropriate will see results that even senior executives will notice: lower supply chain costs and higher efficiency.
Pallet handling tips for forklift drivers
The main cause of pallet damage is mishandling by forklift operators, according to the experts. Here are some quick tips for drivers on handling pallets correctly.
Don't hit the pallet blocks when entering the pallet.
Don't "shortfork." Instead, make sure the forks are inserted far enough into the pallet entry that the pallet is fully on the forks. "If your tines only go in halfway and you pick up the pallet at an angle, the ends of the forklift tines are actually puncturing the underside of the pallet," says Rex Lowe, formerly of pallet pooler iGPS.
Don't "bulldoze," or push pallets across a concrete floor.
Don't "pinwheel," or use the forklift tines to push the pallet/unit load diagonally 90 degrees.
Don't drop pallets.
Do slow down as you enter a pallet. "Many operators don't, and they end up slamming into the pallet," says Virginia Tech's Horvath. "When a 10,000-pound forklift hits the leader board of a pallet, it's going to cause damage."
Do spread forklift tines as far out as possible (but without going too far) when entering the pallet.
Do keep the forklift tines as level as possible when entering the pallet, so they don't puncture the pallet.
Do tilt forklift tines back slightly at an angle when carrying the pallet, so that the pallet rests on the forklift mast, recommends Lowe.
Do stack pallets uniformly. A neat stack of pallets is less likely to topple over or be hit by a passing forklift.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.