Crisis breeds opportunity, or so they say. Here are increases we've already seen in raw materials:
- Softwood Composite
Prices are up about 34% in the last 12 months
- Hardwood Pallet Cant Composite
Prices are up 11% in the last 5 months
Right now, lead times for industrial lumber are extended and supplies are tight. This means wooden pallet and crate prices have to go up.
How to Save on Pallet and Crate Costs
I'm being asked all the time if anything can be done to combat these price increases. The answer is, yes! Retrieval programs for pallets and crates can save your company 10-50%.
- Take Back Control of Costs
A pallet and crate retrieval program transfers the cost control lever back to manufacturers and shippers. Start by looking at all operating costs with a focus on cost-per-use.
- Reuse Existing Packaging
You might be surprised to learn that return programs do not have to be all inclusive to save money for the shipper. Existing packaging is almost always reusable in its current state.
- Reduce Packaging Waste
It gets better. You'll help stop wood-based packaging from going into the landfill. Your company gets to reduce its carbon footprint while also saving money.
Change your Packaging from Expense to Depreciable Asset
Need even more reason to consider a packaging return program? The US economy is growing and so is demand for lumber. Logging and sawmill capacity has not yet caught up - and may not. Inflation is real and will grow as the economy grows. If there has ever been a time to get with a program and take control of packaging costs, this is it.
If a packaging return program isn't your best match, here are 3 other money-saving solutions to help with the rising cost of wooden pallets and crates.
As the cost of lumber continues to rise, how are you preparing your business for increased packaging costs? Share your strategies or ask questions in the comments below.
Post by: Rich Reiher, Vice President