This question, posed decades ago by the earliest pallet industry pioneers such as the late Bill Sardo, still comes up today. The correct answer depends on how we define “pallet.”

Pallet-like structures have been used as bases for at least a few hundred years for applications such as the safe stacking and stabilization of kegs. Let’s look at the Dictionary.com definition, which describes a pallet as “a small, low, portable platform on which goods are placed for storage or moving, as in a warehouse or vehicle.”

If one is to follow the definition at Dictionary.com, then these structures were pallets in that they were used for storage, and they did indeed predate the lift truck. They did not, however, facilitate movement of goods, which most professional definitions for pallets would prescribe to be an important part of the definition. The appearance of unit-load bases designed to move goods takes us to to the very late 1800s. The predecessor of the wooden pallet was the wooden (and iron or steel) skid, which consisted of stringers or legs fastened to a top deck. It first appeared in American factories in conjunction with the low lift truck. A crude low lift hand truck was invented in 1887 that could elevate a skid a few inches by manual means. A more durable, all-steel low lift truck design was introduced in 1909. Early lift trucks had a lift platform. The appearance of forks came later. Skids were classified as “live,” containing casters on the base for manual positioning of the skid, or “dead” if they did not have casters.

With the introduction of the high lift fork truck in the last half of the 1910s, the stage was eventually set for the introduction of the bottom pallet deck, resulting in the modern pallet. As early as 1926, the essence of the modern lift truck had been developed. Now, pallets no longer were simply a means of moving materials within the plant. High lift trucks made possible vertical stacking of unit loads and a resulting dramatic improvement of warehouse and plant storage efficiencies. Several early pallet patents exist, and these are referenced at Wikipedia.org in its discussion of the pallet.

The pallet evolved in stages. Spacers were used between loads to allow fork placement and withdrawal, progressing to the placement of boards atop stringers to make skids. This facilitated the stacking of a greater range of loads. Eventually boards were fastened to the bottom to create the modern pallet. The development of the pallet eliminated the potentially unsafe and time consuming practice of the operator frequently climbing out on the front of the lift truck to place the 2x4s between unit loads, while reducing the risk of stringer collapse.

Trade magazine advertisements from the 1920s provide the first evidence of pallets being shipped by rail domestically in the U.S.

Pallet development further evolved with the development of 4-way entry and alternative material pallets in the 1940s. During World War 2, the use of the pallet and forklift would become a key component of the U.S. military logistics strategy. See for example, “Why Use Two When One Will Do.” (http://packagingrevolution.net/why-use-two-if-one-will-do)  After the War, the use of pallets became increasingly popular in industry. But more on that for a future instalment.

In the final analysis, most pallet professionals would say that the forklift came first, and the pallet came later. Based on more commonplace definitions, however, such as offered at Dictionary.com, you could also be right in saying that the pallet came first.

Rick LeBlanc is a CMHDS director, editor of www.PackagingRevolution.net, and co-author of Pallets: A North American Perspective. He can be reached at rick@packagingrevolution.net

The BC Women in Logistics (WIL) are happy to announce an Autumn meeting creating a wonderful networking opportunity.

Be sure to mark Thursday October 15, 2009 on your calendar for the Dinner Speaker, Ruth Abramson, and “how to weave sustainability into your purchasing practices.”

Looking for ways to go green? To make the sustainability shift in your organization? To address the complex demands of going carbon neutral with your peers?

Then “Inspiring Change: Generating Triple-Bottom-Line Results” is the workshop for you.

In this workshop you’ll:

• Examine the business case for sustainability in our sector
• Discover what the province, public sector, and top BC companies are doing to go green
• Share solutions for setting and achieving sustainability goals for your organization
   
   TIME:  5:30 pm – 8:30 pm
  LOCATION:  Eagle Creek Facility 7600 Halifax Street, Burnaby, BC
  Speaker:  Ruth Abramson

Our October guest presenter, Ruth, is currently working with PHSA Supply Chain department to look at how they can weave sustainability into their purchasing practices. By factoring the social, economic and ecological aspects of a product into the purchasing decision, we can work with our suppliers to encourage sustainable practices, such as minimizing packing, or recycling electronics. PHSA has taken a leadership role in environmental sustainability. They build their new buildings to LEED® Gold standards and were the first health-care organization in Canada to use LED lights in one of their parking lots. These are just two examples of the types of practices that will help meet the provincial government’s requirement to be carbon neutral by 2010.

For more details visit the WIL website at www.WomenInLogistics.com.

Here’s a quiz. Customer A buys a pallet rated for 100 trips, but the pallet is lost after the fourth trip. It ends up at a pallet recycler, and it goes into a grinder or is shipped overseas as an export pallet, so it is no longer usable in local applications.

Company B buys a light-weight pallet classified for single use, but through proper handling and effective pallet management, it lasts for 12 trips before being sent to a recycler for processing.

Which pallet is most ‘environmentally friendly’?

While the examples above do not provide enough information to make that determination, the point is obvious. If pallet management and effective secondary markets created by the pallet recycling industry are not fully utilized, and pallets are lost or damaged prematurely, then we fail to reap the maximum environmental benefit of the wooden pallet. If they are effectively reused for multiple trips, then we will easily exceed those expectations.

The trade press has been flush with claims and counter-claims in recent months about the environmental superiority of one type of material over another (wood or plastic) and with respect to specific pallets or pooling systems. Pallet users can find themselves bewildered by competing claims, many of which are supported by independent third party analysis.

Pallet users need to realize that there is more to the question of environmental responsibility than whether a pallet is plastic or wood (or another material) or which pooling company owns it. If they ‘leak’ plastic pallets that wind up in a grinder or ship on rental pallets to distant customers and the pallets are irrevocably lost from the pool, then generalizations about the environmental benefits of a pallet or pallet program are really a moot point.

Some reusable applications have had problems. For example, the U.S. Postal Service has reported losing millions of plastic pallets from its pool, and the North American automotive industry spends about $750 million annually to replace reusable pallets and containers.

Even pallet pooling companies are not immune. Earlier this decade, CHEP lost track of 14 million pallets in Europe. Many other cases of large scale losses of pallets or containers are never disclosed.

Supplying pallets or pallet programs that provide superior cost effectiveness and environmental benefits involves more than the right material for the pallet or the right pallet pooling system. Solutions also should be grounded in proper handling and control of pallets and containers to maximize their useful life.

Frito Lay, the grocery manufacturer, finds best value by collapsing and reusing corrugated containers for shipping its products. With a light-weight product and company drivers performing delivery services, it is in a good position to make this approach work.

Generally, pallet users can minimize costs and maximize environmental benefits by properly managing pallets – maintaining better control, and working with distant or fragmented customers to ensure that pallets can be reused or recycled when they are emptied.

What should pallet users do? While environmental claims are about pallets are important, they only speak to generalities. Environmental best practices are much more than a product selection decision when it comes to pallets. It is no less than a product management decision. A so-called ‘green’ product without a ‘green’ attitude to daily operations is not going to win the day.

Pallet users can take the following key steps to improve management of reusable pallets and containers.

Create an executive imperative. Shout from the mountain top. I have found that it is easier to generate overall commitment for an environmental goal than for a cost reduction target, especially for a program that has clear management commitment behind it.

Cascade that desire into an action plan. Look at the dollars (and environment benefits) and act accordingly. In spite of the size of the investment, action plans can often be incomplete or superficial. Take the time to put a plan in place that is in proportion to the opportunity.

Communicate and train. Pallet management and control should not be a corporate secret. Companies often fail to recognize how many people in the chain of custody – from commodity buyers to store clerks – actually make decisions impacting pallets. As a result, many of these decision makers may not be properly trained.

Execute and track. It starts with people and tools. Like workplace safety programs, successful execution relies largely on appropriate front line behavior. This requires management resolve over time to build commitment and make it stick. Regular stock taking can identify losses earlier rather than later, when production comes to a stop because a business ran out of pallets. Tracking technology can make the job of pallet management easier; the options range from RFID to relatively inexpensive software like that from 2ic Pallets (www.2icsoftware.com).

Review and reinvigorate. Don’t wait for a flat line before you get out the paddles. Sometimes we don’t look past the initial pallet purchase, rather than recognizing it for what it is – just one step in a pallet management system. Periodic reviews can identify emerging problems or fresh opportunities and keep the system in better sync with overall logistics priorities.

For a lot of businesses, pallets are an expensive budget line item that is largely taken for granted as a cost of doing business. Ditto for environmental claims made by vendors and interest groups. In order to fully reap the environmental and financial benefits, it is important to invest in pallet management.

Over 25 years ago I had a boss who said that my approach to pallet management was like hitting a mosquito with a sledgehammer. However, when I cut our company’s spending by $600,000 per year by improved pallet management, he started helping me swing it.