Issue link: http://palletcentral.uberflip.com/i/946815
COVER STORY 22 PalletCentral • January-February 2018 palletcentral.com One worldwide retailer trying out the cardboard pallet model is IKEA, which has the ability within its closed-loop distribution system to use corrugated cardboard pallets. According to its website, Ikea's cardboard pallet holds up to 1,650 pounds. However, the same standard size wooden pallet (48x40) holds up to 4,700 pounds on average, nearly three times the unit load. Because the wooden pallet is stronger it can carry more of a load and helps to reduce the number of shipments and transportation costs – both the economic and environmental costs. But IKEA is not most companies. With more than 300 stores in 27 countries, and more than 1,000 suppliers in 51 countries with over 30 distribution centers, having their suppliers assemble cardboard pallets on site, makes sense for this large retailer. "The incredible volume of products shipped to retail stores would require nearly triple the number of deliveries on a cardboard pallet due to limited carrying capacity. And, these deliveries would have to be in absolutely perfect weather, loading, and unloading conditions. That is not realistic at all," added Hachtman. The fact is, wooden pallets are environmentally sustainable – less than one percent of wood pallets that leave the industrial supply chain ending up in landfills. Wood pallets are also 100 percent reusable and renewable. When a wood pallet is no longer useful as a pallet, the wood is recycled for fuel, heating pellets, landscape mulch and animal bedding. The nails are also recyclable. Should wooden pallet companies be worried about any inroads cardboard pallets are making? "There is no question that wood pallets win when it comes to durability and unit load capability," Shean said. "Wooden pallets are designed to meet the weight expectations of the customer. This gives us a durable and strong pallet that can withstand rough handling throughout the supply chain. And strong is safe. With all the attributes of wood, along with its economic and environmental benefits, our industry shines." Time will be the test of how corrugated cardboard pallets fare across industry. They will likely always have a place in the market, but for now, that market is a niche one. PC Esme Neely Smith is a freelance writer and photographer in Annapolis, MD. She has previously written on numerous topics including boating, education, real estate, retailing, business and the environment. She can be reached at esme.neely.smith@gmail.com. The carbon footprint of manufacturing a cardboard pallet can be five to ten times larger than manufacturing a comparable wooden pallet.