Every business must do their best to minimize costs and optimize their supply chain. Pallets are a huge part of both of those considerations. There are two main options for pallet supply: renting and buying. There are pros and cons to both renting and buying, and which one is right for your company depends on your packaging, shipping and storage needs. Before choosing whether to rent or buy, consider the following.
The Rental Pallet Lowdown
Pallet rental is very common in the grocery industry. Twenty-five years ago, a global company called CHEP entered the U.S. market and introduced rental pallets. You have probably seen their blue pallets at large retailers such as Walmart. After the appearance of CHEP, a second pallet rental company called PECO appeared on the scene with their characteristic red pallets. Rental pallets come in standard sizes and are built for durability. Advantages to rental pallets include:
- Lower cost per pallet
- Increased safety due to durability
- Outsourced pallet tracking and repair
The cons to pallet rental are often neglected, overshadowed by a lower up-front price. Consider however, that renting pallets may mean:
- Hidden costs, e.g., lost pallet charges
- Inefficient reporting that costs you time and paperwork
- Outsourced pallet quality control
- Working with a large company that does not prioritize customer service
- No flexibility in pallet sizing and specifications
The Perks to Buying Pallets
The rental pallet has utility within certain industries. Purchasing pallets, however, can still be cost-effective and also does away with the downsides to pallet rental.
- When you purchase a pallet, the cost is entirely upfront.
- You maintain control of your pallet inventory, meaning no wasted time.
- You control the exact source of your pallets, allowing for better quality control.
- Working with an independent business often means top-notch customer service.
- You get complete control and flexibility with custom pallet design, optimized for your company.
As an alternative to pallet rental giants, a group of independent pallet producers joined together to create 9Bloc. Members of 9Bloc maintain their status as independent providers, but through the collaboration, they are able to better serve the logistical needs of today’s industries. 9Bloc customers have access to a nationwide network of pallet providers, get competitive pricing, are guaranteed the highest quality pallets, and maintain the flexibility provided by independent pallet manufacturers.
While pallet rental has its benefits, including cost-effective, high quality pallets, it also comes with restricted flexibility and reduced control over your pallet inventory. Purchasing pallets maintains that flexibility and control, allowing you to monitor the quality of your pallets and comes with the added bonus of upfront pricing and no hidden costs.
