An interesting read regarding a collaborative effort between a european pallet pooler (LPR), their service provider (Norbert Dentressangle), and a manufacturer (Weetabix) can be found here. Much in the same line of thinking as a Reverse Logistics Center, these companies have integrated their supply chains to reduce overall movements of product, reducing environmental impact while saving money. The typical flow (as in the U.S.) of the supply chaing including pallets is Pallet Depot to Manufacturer to Retailers to Pallet Depot. This partnership has integrated the depot entirely (sort and repair) into the Manufacturer location, reducing unnecessary legs of transportation. This is accomplished only through active collaboration between all parties, and demonstrates a proof of concept in pallet pooling that is growing in popularity as all companies look to streamline logistics, reduce environmental impact, and drive out unnecessary cost.

It's hard to imagine a paper pallet capable of withstanding the rigors placed on a traditional wooden pooled pallet, but furniture retailer IKEA plans to prove it's worthiness beginning this January. The retailer will begin shipping paper (compressed cardboard) pallets to suppliers for shipments through their supply chain. What remains to be seen is numerous, some more obvious than others. The durability of a the pallet, and its inability to be subsequently repaired, stand out as the biggest question mark.

To IKEA's credit, they are actively seeking what they consider to be a more environmentally friendly shipping platform, while also seeking a transportation cost savings from a lighter pallet. Bloomberg provided a thorough, although perhaps ambitious in its title, commentary on the subject which you can read by clicking here. Whether this is a long-term solution or not, it's clear that the pallet industry still has room for innovation to what others may consider a simple product. As the demands of the economy and the environment continue to evolve, we're sure to see more of these type of ideas come about.