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Export Pallets vs. Warehouse Pallets

It is time for a simple question!

Will you be shipping a durable plastic pallet away, never expecting the pallet to be seen again, or will your pallet be returning to the warehouse frequently?

This question is posed during initial discussions to determine if you will be purchasing plastic pallets as an expense for shipping or a business asset. Now is a great time to look as durable plastic pallets first as an expense, and then we will tackle the idea of pallets as an asset.

Plastic Shipping and Plastic Export Pallets as an Expense

When a manufacturer ships a plastic pallet from point A to point B and never expects it to be seen again, the loss of the pallet is considered an expense. The operation will typically build the expense of the pallet into the cost of the goods being transported, and the expense is ultimately transferred to the person buying the product.

In a competitive global marketplace, the transfer of costs in this manner must be as competitive as possible, so the less a pallet costs, the better it is for all parties involved. Some manufacturers will decide to deal with the expense by determining it to be a zero transfer cost. On the other hand, a few companies might decide to add a margin to their plastic pallet, making it an actual method by which to make a profit.

Regardless as to what a manufacturing plant plans to do, the pallet serves as a means to move products from one point to another. The performance characteristics required from any pallet are to:

  • The ability to protect any and all loaded product during transit.
  • The ability to maintain weight capacity in a durable rigid structure.

The goal is to accomplish both of these tasks at the lowest possible expense, so that cost and transfer expense are minimized.

What Are Customers Down the Supply Chain Looking For?

One vital distinction to make is that one-time use plastic shipping pallets are usually preferred by customers further down the supply chain. Often manufacturing plants would prefer traditional wood shipping pallets. However, if you would like to ship manufactured products outside of the United States heat treating (HT) of your wood pallets needs to become a time-consuming part of your procedures. To meet the evolving needs of consumers, we offer a rugged yet less expensive option in our inexpensive nestable plastic export pallets.<?p>

We have a number of names for this type of plastic pallet, and they include:

  • Plastic export pallets.
  • One-way plastic pallets.
  • Consumable plastic pallets.

The materials used in pallet production, design and manufacturing process of these plastic shipping pallets makes them a good solution for one-time use.

Plastic Shipping and Plastic Export Pallets as an Asset

We detailed plastic pallets as an expense above. Now it is time to consider plastic shipping pallets as an advantage. If a business intends to reuse a pallet again and again, the pallet is considered a business asset. Plastic pallets were born from the idea that a reusable shipping option was necessary so that manufacturing plants could buy pallets infrequently. In this type of application, pallets are accounted for as depreciable assets, and the ROI is the ultimate factor behind a purchasing decision.

Pallet Performance

Performance characteristics for pallets that are considered assets become very important because manufacturers need to save on cost over the long run, and intricate operational and financial considerations will need to be made. One must also take into account that the environment that a plastic pallet is subjected to is often harsher than that encountered when shipping simply from point A to point B. Definite care must be taken to study how the plastic pallet will provide a return on investment for the operation.

Plastic Pallet Cost and Return on Investment (ROI)

It is not unusual for first time pallet buyers to become concerned when they hear the price of a single reusable plastic pallet. The initial expense must be ignored!

The ROI must be the number one priority. For instance:

  • If a $60 reusable plastic pallet lasts 4 years in service, it is far less expensive than a traditional wood shipping pallet that costs $10 and only last 3 weeks in the supply chain. This type of reusable plastic pallet is purchased because all internal operations are considering plans for cost reduction.

These pallets are usually referred to as:

  • Racking pallets.
  • Captive pallets.
  • Warehouse pallets.
  • Distribution pallets.
  • Reusable plastic pallets.

The pallet production material, design and manufacturing process are all different than those used for one-time use pallets because the plastic pallets need to be stronger to result in a more effective ROI.