When a mid-size distribution company in Bridgeport approached us in early 2024, they were spending over $85,000 annually on new pallets. Twelve months later, that number dropped to under $45,000 — and their operations actually improved. Here's how.
The Situation
The company distributes food products across the Northeast. They were buying approximately 6,000 new GMA pallets per year at $14-$16 each. Their supplier was based in Pennsylvania, which meant significant freight costs on top of the pallet price.
Their main pain points:
- High per-unit cost eating into margins
- 2-3 week lead times causing occasional shortages
- No pallet return program — pallets sent out rarely came back
- Growing pressure from their retailer partners to improve sustainability metrics
Our Approach
We started by analyzing their actual pallet needs. Not every shipment required a Grade A pallet. We found that roughly 40% of their volume could use Grade B pallets with zero impact on performance.
We designed a tiered program:
- Grade A used pallets for customer-facing retail shipments (60% of volume)
- Grade B used pallets for warehouse-to-warehouse transfers (40% of volume)
- Weekly delivery schedule — smaller, more frequent orders to reduce storage needs
- Buyback program — we pick up their returned pallets and credit the account
The Results
After 12 months:
- Cost savings: $41,200 (48% reduction in pallet spend)
- Lead time: reduced from 2-3 weeks to 24-48 hours
- Zero stockouts — not a single day without adequate pallet supply
- Sustainability improvement — estimated 3,000 trees worth of lumber saved
- Warehouse space recovered — 400 sq ft previously used for pallet storage now available
Why It Worked
Three factors made this successful: local sourcing (we're 20 minutes from their facility), rigorous grading (they trust what they receive), and the buyback program (which offsets costs and simplifies disposal). This wasn't just a cheaper pallet — it was a better pallet program.
