A connected pallet unlocks the benefits of reusable pallets by empowering users to maintain oversight of inventory to prevent loss and by obtaining new data from segments of the supply chain that were previously invisible. This connectivity changes the economics of reusable pallets, enabling more widespread adoption which, in turn, generates significant financial and environmental benefits. Reusable, connected pallets allow users to reduce fuel consumption (composite pallets are typically lighter and have a lower profile than wooden pallets), decrease wood waste from broken pallets, and decrease the amount of raw materials required to produce replacement pallets by reducing the average number of pallets that are lost or broken in each trip. With connectivity, users can track pallets in the supply chain as they move from one location to another, dramatically reducing the risk of loss, and the costs and time associated with locating or replacing missing pallets. Meanwhile, supply chain operators benefit from new information about how pallets and inventory move through multiple, interrelated supply chains.
A connected, reusable pallet can be used 162 times before it reaches end of life, resulting in a per trip cost up to 20% lower than non-reusable alternatives. Widespread adoption of connected reusable pallets – particularly by large retailers and logistics providers that interact with thousands of pallets a day – could meaningfully reduce greenhouse gas emissions and other negative environmental impacts while increasing resource efficiency and lowering lifecycle costs. If a company managing one million wooden pallet trips per year were to fully implement connected pallets, that company could reduce emissions by 640 metric tons of CO2e every year.
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