Modern Materials Handling - November 2012

MODERN reader surveyModern Materials Handling’s Pallet WebcastResults of the 2011 Pallet Usage and Trending StudyNovember 15, 2012 2 pm ET. Go to mmh.com/2012palletsreaders are shipping solely on stringerpallets and 24% are shipping solely onblock pallets. However, another 23%are shipping on block and stringer palletsin equal measure. In other words,a significant percentage (47%) is shippingsome loads on block pallets.Second, among the respondents,more than half are shipping to majorretailers, big box store operatorsand grocery store chains. Of those,33% ship to Walmart, 26% ship toCostco, 24% ship to a major grocerychain, and 21% ship to Sam’s Club.Readers are also shipping to othermajor retailers such as Target, HomeDepot, Lowe’s, Walgreens, JCPenneyand Macy’s.A significant percentage of all readers(82%) report that no customerrequired them to change the type ofpallet they were using for shipmentsin the past year. However, nearly 19%reported that they had changed theirpallet usage in response to a customerrequirement.Of those, 31% say that they are usingmore block pallets and 54% say they areusing alternatives to wooden pallets.Only 15% are using more stringer palletsin response to a customer requirement.In other words, while a relativelysmall number of respondents havebeen asked to change the type of palletthey are using, most have switchedaway from stringer pallets.Asked what type of business isrequiring them to change the type ofpallet they are using, 41% respondedthat it was a retail customer, 34% amanufacturing customer and 26% awholesale customer.For now, Costco appears to be one ofthe few companies planning to requireits suppliers to ship on block pallets.Only three readers from our surveyindicated their company was consideringa similar strategy.Are your shipments . . . . And, to which countries orregions are you shipping?International4% CanadaDomestic39%Both58%Get into the poolPallet pools have long been an alternativeto purchasing new or used pallets.That has been true whether participationin a pool involved Yes renting a pallet19%from CHEP, PECO or iGPS or a companymanaging its own assets. The latteris common 81% among auto suppliers,Nofood and beverage manufacturers, andthe pharmaceutical industry that reusesplastic pallets.Looking forward, it appears as ifmost companies plan to continue whateverstrategy they are currently pursuing.Only 17% of readers said they arelikely or highly likely to participate in apallet pool in the coming year.Of readers who would consider participatingin a pallet pool, 41% reportedthat they would explore creating ormanaging their own pool; 28% said theyhave already evaluated or consideredcreating or managing their own pool.Finally, we asked how interested arereaders in using a pallet pooling servicemanaged by the pallet industry as analternative to established pools managedby CHEP, PECO and iGPS.Roughly 14% indicated they areMexico, South America,CaribbeanChina, Japan, SE Asia,North Asia and AustraliaWestern EuropeEastern EuropeMiddle East, North AfricaIndia and SubcontinentSouth AfricaOther17%27%26%8%36%48%57%66%74%Source: Peerless Research Group (PRG)A major retailer recentlyswitched from acceptingstringer pallets and is nowrequiring distributors touse block pallets. Is yourcompany planning asimilar strategy?Unsure of whatwe’ll do yetNo63%10%Yes8%Haven’theardanythingabout this58%Source: Peerless Research Group (PRG)interested or highly interested. And,66% indicated that they are not very ornot at all interested.That could indicate that the palletindustry needs to do more work toeducate readers on what it may offerand how they may benefit from a newpool. 38 N O V E M B E R 2 0 1 2 / MODERN MATERIALS HANDLING mmh.com