Analyst Insight: Consumers demand that stakeholders within the supply chain behave as socially responsible corporate citizens. Not only is this a business necessity; it also makes the world a better place.

Between the impact of the pandemic, feelings of political instability, the challenges of inflation and headlines about increasing pollution, many consumers are feeling fatigued and uncertain. They want to associate with companies that are doing the right thing for the planet and for society.

The supply chain is part of the country’s infrastructure. Without shipping pallets, society would grind to a halt. So, keeping the supply chain moving is a very serious responsibility. We all know that the ways in which companies manufacture, move, repair, store and dispose of pallets can have an impact on the environment as well as employee and consumer safety. Each of these actions can also influence the production of waste and that, over time, small amounts of waste can add up to a big problem. 

Safety is Vital — For Workers and Customers

If you ask a pallet maker what keeps them up at night, one key concern they have in common is the possibility that their product may unintentionally cause injuries. Carelessly stacked pallets can topple over. Repeatedly moving and lifting heavy pallets can cause ergonomic problems. So, making pallets lighter, while also having them be strong enough to transport heavy loads, and durable enough to withstand the rigors of the supply chain, has become more of a priority. Manufacturers and retailers are also concerned about protruding nails and splinters, which can not only clutter floors and jam equipment, but also cause puncture wounds. There have even been stories about customers in the shopping aisles being harmed by loose pallet fragments. 

Of course, safety extends beyond the workers — we need to keep products safer, too. As we continue to battle inflation, companies are hyper-focused on reducing the number of “unsellables” that arrive at retailers due to damage in transit. A recent issue of Pallet Enterprise, which focuses on the wood pallet industry, noted that the average industry shrink rate has increased in recent years, due not only to theft and loss but also due to product damage in shipping. It’s no surprise that the publication is calling for new pallet quality standards in the wood industry, to minimize the possibility of product loss while improving flow-through in automated equipment.

Sustainability Remains a Top Priority

Virtually all the world’s major supply chain players have made environmental sustainability a priority. In February, Walmart announced the realization of its emissions goal with Project Gigaton — successfully removing a billion metric tons of greenhouse gas emissions from the supply chain. To reduce packaging waste, Amazon has adopted an AI model called “The Packing Decision Engine” to calculate the most efficient packaging options for shipping items, and also announced last year it has eliminated more than two million tons of packing material from its waste stream since 2015. The White House’s Federal Sustainability Plan, meanwhile, aims to reduce U.S. greenhouse gas emissions by more than 65% by 2030.  

A lighter pallet means less fuel consumed during shipping, and fewer greenhouse gas emissions. It also allows companies to fit more pallets onto one truck, cutting down on the overall number of truckloads. Investments in recyclable materials, meanwhile, mean pallets don’t end up in landfills or clogging our waterways. 

A key driver of all these efforts will remain the consumer. In the wake of the pandemic, consumers are increasingly brand-agnostic, a shift driven by practical necessity, financial barriers or overall sentiment. People want to do business with responsible corporate citizens. They also want to work with companies that hold other companies, including their partners and suppliers, to these same high standards. Whether you’re making and moving pallets, or manufacturing products, or driving the trucks, or engaging with the customer at the point of sale, paying careful attention to the social component of the supply chain is crucial.