JUNE 2021
with local pallet providers to quickly address the pallet requirements. Likewise, suppose a particular pallet manufacturer faces a production disruption or doesn’t have the equipment to make a certain pallet. In that case, the broker can shift the order to a different pallet operator to ensure delivery.
Non-asset-based pallet providers also rely upon their transportation expertise to provide affordable delivery at distances that regularly exceed 150 miles, utilizing underserved freight lanes and leveraging transportation relationships to move pallets beyond local markets.
How asset-based pallet suppliers and non-asset-based providers work together
While non-asset-based pallet providers do not have the same geographical and production constraints as asset-based operations, pallet brokers must rely on trusted relationships with them to successfully serve customers. Many asset-based operations value relationships with brokers to supplement or replace in-house sales requirements, especially during slower periods. Alternatively, some pallet companies rely entirely upon leads and sales generated by brokers, which act as their sales departments
Non-asset-based companies can bring new opportunities to local pallet companies that they might not otherwise know about and work with them to provide acceptable remittance terms to eliminate their risk of late payments. Ultimately, non-asset-based pallet providers can only offer comprehensive national solutions through collaboration with local pallet plants and other subcontractors.
Ultimately, there are pros and cons to working directly with local pallet producers or working indirectly with them through a pallet management firm. For predictable, local requirements, a local asset-based supplier can work great. However, where greater reliability, flexibility, and simplicity are prerequisites to growing and risk-proofing your supply chain, you should consider a non-asset-based provider.
This article is submitted by WPA-member First Alliance Logistics Management, a leading non-asset based pallet provider. To find out more, visit www.falm.com.
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