Pallets are being used more frequently to reduce the amount of manual handling, but it is doing so at the expense of freight.  With the cost of rising freight, does this still make sense?  As companies consider these factors, here are some examples of when not to palletize.

Companies had a choice to go with pallets that speed up loading and unloading and reduce product damage to goods or to floor load.  Clamp trucks were often used to speed loading but because of the damage they created, they were referred to as the squeeze of death as they caused high damage.  Pallets became the alternative.  They provide a softer approach.

The downside - pallets consume capacity in a truck.  A manufacturer of frozen pizzas hand loads all of their trucks.  Load maximization is a key cost driver for them.  Another redeeming factor is that the cases of pizza are relatively large and light.

You have to take into consideration the pallet weight when determining payload.  By removing pallets, you can increase the weight of the product carried.  For example, if you have 60 pallets, they weigh over 3,900 lbs and decrease that weight of product by 8%.  In many cases, DC replenishment shipments can be more economically shipped without
pallets.  The extra labor costs associated with palletizing when they are received, are often calculated to be less than the freight savings.

You can’t forget about the cost of the pallets.  It does not matter if the pallet is part of an exchange program, disposable, rented (like Chep), used or whatever, using them costs money ($2-10 per use).

The cost decision of shipping on or off pallets must be considered and reviewed carefully against the potential for damage.

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