Coming And Going

Most supermarket product arrives on pallets and leaves in carts, so we take a look at the state of both arts and beyond.

The humble pallet — or skid in warehouse-speak — has been a supply chain staple since the dawn of supermarketing, and today's pallets are a far cry from the first primitive nail-and-board affairs.

Rex Lowe, president of Orlando, Fla.-based iGPS Co., who says his firm's high-density polyethylene pallets are used by every major supermarket chain, notes his products weigh 48.5 pounds. That's 35 percent lighter than wood alternatives, Lowe says, adding that they are edge-rackable, with a 2,800-pound load capacity and maintain standard 48-by-40-inch dimensions throughout their lifetimes.

"iGPS has the only commercially available pooled plastic pallet that is certified under UL 2335 and FM Approvals 4996," he says. "A unique identification number allows each pallet to be associated with the user internal LPN (license plate number)."

Green-wise, Lowe says iGPS pallets are completely recyclable and don't require trees in their manufacture, and their lighter weight means less fuel consumption for shippers and, hence, fewer greenhouse gas emissions.

IFCO Pallet Management Services, based in Houston, is the largest such company in the United States, according to its VP of sales and business development, Dan Martin, who says IFCO sorts, repairs and recycles more than 150 million wood pallets from a network of more than 50 company-owned and operated pallet recycling facilities, over 100 reverse logistics centers and on-site operations, and an affiliate network of over 125 providers. It also has a fleet of more than 5,700 tractor and trailer transportation units.

"The majority of our revenue in the U.S. comes from A- and B-grade reusable-recyclable pallet sales," Martin says. "Materials used in repairing those pallets come from other recycled pallets that have reached the end of their useful life."

IFCO offers a corporate compliance program and quality management system to ensure adherence to customers' strictest standards. "At IFCO," Martin says, "recycling and reuse are not just initiatives — they are our entire business. Our efforts resulted in over 1.8 million tons of lumber being diverted from landfills."

He adds that IFCO assists in supply-chain savings, which includes freight collaboration, warehouse savings and maximizing the value of pallet assets at the end of use. "By leveraging our network, we can reduce empty miles and improve transportation utilization, which benefits all parties," he says.

CHEP USA makes its signature blue pallets from commercially available softwoods, according to Chris Timmer, VP of retail sales for the Atlanta-based company that is moving its headquarters to Orlando. Timmer says the lumber used is kiln-dried at very high temperatures and that rigid pallet engineering specifications are designed for a uniform stable unit load platform, which is able to "significantly reduce product damage."

CHEP operates a pooled pallet system, unlike typical "one-way" pallet use, maintaining ownership of pallets moving through the supply chain as leased assets, Timmer explains. He says pooling offers solutions like decreased operational downtime, reduced product damage, minimized pallet load rejections and improved pallet quality. "CHEP works closely with its customers to analyze their supply chains and data to identify specific improvements that drive operational efficiency," he says.

In terms of sustainability, Timmer says the benefits of pallet pooling align with the commonly known "reduce, reuse, recycle" principle, noting that CHEP has been using life cycle analysis methodology to calculate environmental impact since 1999, employing scientific data to measure a product's environmental impact "from cradle to grave." He points out that CHEP's extensive service network allows short transportation distances virtually everywhere pallets are needed, reducing the transportation carbon footprint of the entire supply chain.

The "other material" used for pallets now includes paper. Lorain, Ohio-based Erdie Industries has introduced Tri-Hex corrugated cardboard pallets, which company owner Jason Erdie says "won't replace wood by any means," but could attract market share because of their low cost. Assembled on-site, Tri-Hex pallets measure 2 inches high, weigh 5.5 pounds and can support nearly 3,000 pounds.

Noting that the one-way Tri-Hex pallets are good for produce, Erdie says his company is collaborating with companies that make big boxes for melons and other produce, and that the pallets are being tested in grocery stores.

Before the Horse

Since the advent of the shopping cart in 1937, these wheeled necessities have become increasingly sophisticated. At Omaha-based Americana Companies Inc., which makes 19 various plastic and wire carts, company President Terry Swanson says the best seller is the plastic AMP-17, whose unique coating process allows the company to give a 5-year warranty against rust.

Americana also has introduced an antimicrobial cart that protects against the growth and reproduction of bacteria and will last the cart's lifetime. The details of the protection are printed on the carts, Swanson notes, "to show that management cares about extra cleanliness and safety for their customers."

Alice Little, CP of sales and marketing at Newton, N.C.-based Technibilt LTD, says her company is currently focusing on several key models. The smaller two-basket model is very popular, she says, because the everyday shopper is growing, and having a smaller basket helps the customer move quickly through the aisles.

Technibilt has also recently introduced "TechKrome" for its carts, which has all the appearance of chrome, but is more environmentally friendly.

"We think the future of the shopping cart will be closely linked to the smartphone." Little declares. "More and more people are using the smartphone for lists, coupons and other key messages the retailer is utilizing."