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Pallet sourcing in today’s supply chain environment has never been more challenging and complex. Shifts in trade policies, changing global markets, and rising pallet costs are forcing many in warehousing and transportation to consider how to reduce their spend on pallets.
One option that many companies big and small are choosing is working with a pallet managed service provider. Managed service providers like PalletTrader offer pallet management services to address common pallet-related industry pain points. These pain points include not being able to find reliable suppliers, overspending on pallets, and losing revenue due to product damage. With pallet management services, your provider handles all things pallet related, from buying (and/or selling) pallets to price and contract negotiations.
In this blog, we explore the role of pallet management services in the supply chain and highlight the value that pallet management service providers offer. Read on to learn more about pallet management services and why partnering with a managed service provider might make sense for your organization.
What are Pallet Management Services?
In simple terms, pallet management services are the pallet-related services provided by a managed service provider, a third-party who acts as an intermediary between pallet buyers and pallet sellers. Pallet managed service providers act as matchmakers in the pallet supply chain, matching buyers looking for certain types of pallets at specific price points with sellers whose products match up with the buyer’s needs. The goal of a managed service provider (MSP) is to help you reduce your pallet costs while ensuring you can access quality pallets on a consistent basis. The provider may use multiple online marketplaces and leverage existing network relationships in the pallet industry to help you reduce costs.
With pallet management services, the MSP manages all aspects of your relationships with suppliers and manufacturers, which is a major benefit of using these types of services. Your managed service provider is tasked with handling all of the logistics associated with shipping/receiving pallets, price negotiations and contracts with sellers and buyers, and pallet quality control. It’s important to note that MSPs work and function separately from manufacturers or recyclers and aren’t associated with either. They may be independent, stand-alone service providers or they may work for a larger pallet managed service provider.
Pallet management services encompass all things pallet-related for your business. That includes pallet sourcing from various suppliers, negotiating prices on your behalf, and managing pallet inventory and availability. Additionally, pallet MSPs can coordinate pallet delivery and logistics, as well as quality assurance and inspection. They also handle pallet-related customer service issues and pallet problem resolution.
What Do Pallet Managed Service Providers Actually Do?
So far, we’ve given you a broad overview of pallet management services and MSPs and what they offer, including pallet sourcing. It’s also important to know exactly what tasks can be taken off your team’s hands if you choose to outsource pallet management services to a third-party provider. Additionally, it’s vital to have an understanding of what types of pallets MSPs have to offer. Here, we take a deep dive into the day-to-day responsibilities of MSPs and the various types of pallets they can typically source for clients like you.
Managed Service Providers Day-to-Day Responsibilities
One of the primary responsibilities of a managed service provider, sometimes also called a pallet broker, is vendor network management. As part of vendor network management, MSPs can manage relationships with pallet manufacturers, recyclers, and suppliers across multiple geographic regions on your behalf. Service providers also often conduct needs assessments with clients to make sure they understand exactly what their clients need for pallets. The needs assessment provides the MSP with info on needed pallet quantities, specifications, quality grades, and delivery schedules.
Notably, pallet managed service providers also handle pallet price negotiations. They often can leverage their buying power and industry relationships to get you competitive pricing on pallets that you couldn’t otherwise get. In addition, pallet MSPs can take pallet quality control off your plate, ensuring the pallets you buy and/or sell meet the standards and regulations required, including ISPM-15 and GMA standards.
If your staff has had it with coordinating the logistics of buying and/or selling pallets, we’ve got more good news for you: pallet MSPs can take on the logistics coordination of buying and selling pallets, too. Managed service providers such as PalletTrader can arrange the transportation and delivery timing for all pallet shipping and receiving. They also can help your team with pallet inventory management, guiding you through seasonal spikes and fluctuating demand as efficiently as possible.
It’s worth noting that pallet MSPs have access to market intelligence software that offers insights into pricing trends and availability. With this information, your MSP can help you avoid overpaying for pallets, running out of pallets, and effectively navigate unpredictability. Finally, pallet MSPs can resolve problems related to pallets. They can handle issues such as damaged shipments, shortages, or specification mismatches.
Types of Pallets That Managed Service Providers Can Source
Pallet MSPs typically can source a variety of types of pallets for your company, including new pallets. New pallets are available in a variety of materials, including wood, plastic, and metal, though wood pallets are most commonly used in North America. MSPs can source new pallets in a variety of sizes, including standard GMA (48x40”) sizes and custom sizes. Recycled pallets (reused pallets) and remanufactured pallets (repaired pallets) are available to you through a pallet MSP, as well. A cost-effective alternative to new pallets, recycled GMA pallets are available in a variety of grades that are inspected for quality.
What you might not know is that a managed service provider also can source combo pallets, i.e. pallets constructed of both new and recycled components. Also referred to as hybrid pallets, combo pallets most often use new stringers with recycled deck boards or vice versa. Additionally, MSPs can source specialty pallets for specific industries, such as pallets made for the automotive, manufacturing, agricultural, medical and pharmaceutical, and chemical and liquid storage industries. They can connect you and your team with suppliers that can make custom pallets, should the need arise, as well.
The Value Proposition: Why Use Pallet Management Services?
Now the part you’ve been waiting for: why you should consider pallet management services. Check out the eight key benefits and value-adds of working with a pallet managed service provider.
1. Cost Savings
You gain access to competitive pricing made possible by the MSP’s volume buyer power and existing relationships with suppliers. Partnering with an MSP also reduces overhead/time spent on managing multiple pallet supplier relationships. Keep in mind that working with a pallet management provider such as PalletTrader includes access to reporting and data that can further boost cost savings.
2. Time Efficiency
With the MSP acting as a single point of contact, your team can focus their time on other non-pallet-related tasks and activities. At the end of the day, working with a pallet managed service provider reduces your administration burden and time spent on pallet procurement.
3. Flexibility, Scalability
With access to the broad supply network of your MSP, you can ramp up or scale back pallet buying or selling with ease. This flexibility can better-equip your business to handle seasonal fluctuations and/or unexpected demand.
4. Risk Reduction
When it comes to risk mitigation, your MSP is able to absorb supply chain disruptions by always having backup sources in place. Working with a pallet MSP also translates into quality guarantees and accountability.
5. Market Expertise
Pallet MSPs possess deep knowledge of the pallet industry and can provide guidance on the best options for your specific needs. They know the pallet market inside and out and can help you reduce pallet costs.
6. Geographic Reach
You’ll also gain access to suppliers across multiple regions when you work with a pallet MSP. This includes access to additional local, national, and international pallet sources and capabilities.
7. Reduced Complexity
With pallet management services, your ordering and invoicing processes are streamlined, reducing operational complexity. The consolidation of billing and simplified communications that comes with partnering with an MSP also reduces complexity.
8. Quality Assurance
Managed service providers pre-vet suppliers and provide inspection services to ensure you’re buying (or selling) quality pallets. They can help you maintain consistent quality standards to protect the products you’re storing or transporting.
PalletTrader+ Program
For businesses seeking a reliable pallet managed service provider, PalletTrader+ offers comprehensive pallet management services designed to streamline your supply chain.
When you become a PalletTrader+ client, you gain access to an extensive network of vetted pallet suppliers and manufacturers. With PalletTrader+, you also have access to customized solutions to meet your specific business needs and volumes. As our client, you can access competitive pricing thanks to our long-standing industry relationships. Our team also can take quality assurance and specification matching off your plate, handling all aspects of both on behalf of your company.
In addition, PalletTrader+ provides you with flexible delivery options. We handle all pallet delivery and logistics coordination so that your team doesn’t have to. Technology-enabled pallet tracking and ordering is available, as well, to make tracking and ordering as simple and efficient as possible. As a PalletTrader+ client, you also receive dedicated account management and support, along with market insights and supply chain consulting services, provided by our team of pallet experts.
What sets PalletTrader+ Apart
- Deep industry expertise and experience
- Commitment to customer service
- Transparency in pricing and processes
- Proactive problem-solving approach
- Massive pallet supplier network
- Easy-to-use, online pallet marketplace
Bonus Free Decision Guide: When Should I Use a Pallet Management Service?
Signs You Might Need Pallet Management Services:
- High Volume Needs: You regularly need large quantities that exceed single supplier capacity
- Variable Demand: You experience seasonal spikes or unpredictable ordering patterns.
- Multiple Locations: You need pallets delivered to various facilities across multiple regions.
- Limited Internal Resources: Your company doesn’t have dedicated procurement staff for pallet sourcing.
- Supply Chain Challenges: You’ve experienced supplier shortages, quality issues, or delivery problems.
- Cost Pressure: Your organization needs to optimize pallet spending without sacrificing quality.
- Market Volatility: Your business is facing price fluctuations or availability issues.
- Specialized Requirements: You need custom specifications or multiple pallet types.
- Growth Phase: You’re scaling operations and need flexible pallet solutions.
Signs You Might NOT Need a Pallet Management Service:
- Very low volume needs
- Established relationship with a single reliable supplier
- Highly specialized needs requiring direct manufacturer relationship
- Internal procurement team with strong pallet industry expertise
Key Takeaways: What Is are Pallet Management Services?
Check out these key takeaways from our discussion above:
- Pallet managed service providers (MSPs) serve as intermediaries connecting buyers with suppliers, managing the entire pallet procurement process.
- Pallet management services provide value through cost savings, time efficiency, market expertise, and risk mitigation.
- Companies with high volumes, variable demand, or limited resources benefit most from pallet management services.
- PalletTrader+ offers comprehensive pallet management services with a focus on quality and customer support.
Learn more about how PalletTrader+ can optimize your pallet procurement and reduce supply chain complexity.