OCTOBER 2022
back to recycled pallets from new ones. “We'll just have to see what happens with them,” he said. “And I can't predict or know fully what's going to happen with that.”
Impact of supply chain automation and technology
Brindley noted that one of the big industry discussions has been related to supply chain automation and its potential impacts for pallet selection. “The fact is is that every single supply chain is different, and what they need as far as automation is different,” he said. “Some automated systems may require more higher quality pallets whereas others do not.”
Priorities are changing and companies are increasingly willing to make supply chain and technology investments. Pallet Enterprise interviewed Bob Trebilcock, editorial director of Supply Chain Management review. Ecommerce has been a leading driver of automation investment. For example, Trebilcock noted, warehouses have gone from handling 1,000 pallets per day to handling 200,000 individual items, creating enormous labor strain.. And he noted that while cost is a “Top 5” consideration, it is no longer “Number 1” as the importance of residency and flexibility have percolated to the top of the list for supply chain decision makers.
Regarding pallet plant automation, Brindley commented on a recent feature regarding Oxford Pallet, which had built a new structure and invested in equipment, including a new vision sorting system. When asked about his biggest mistake in the project, owner Henk Vrugteveen commented that the thing he would do differently would be
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to be less conservative, and to build the new plant even bigger.
“I think one of the things that we need to do is not only build for the next two years, but for next five or 10 years,” he said, so they can take advantage of the changing supply chain.
Industry consolidation
Pallet industry consolidation has been ongoing, and continuing to bring change to the industry. It is a time where you need to be thinking strategically about relationships,” Brindley said.
“Now, I don't think that every company is listening and needs to run for the hills or sell out,” he continued. “I think there's going to be plenty of room for a lot of people.”
Brindley emphasized the importance for every company to be in a position to attractive to a potential sales partner if they desire to sell the company in the future. The leadership team, workforce, accounting and processes should be in good order. Have you purchased the right equipment and the right debt ratio, he asked rhetorically.