Most companies know their yearly pallet budget, but very few know their true pallet cost per shipment. A short, focused audit can uncover pricing leaks, disposal losses, and inventory inefficiencies quickly.
Week 1: Baseline Your Current Spend
Pull invoices for the last 90 days and split costs into four buckets: purchases, freight, repairs, and disposal. Then map each cost to specific facilities and shipping lanes. This baseline shows where spending is concentrated and where variation is highest.
Week 2: Measure Loss and Turnover
Track pallet in/out counts at each location for two weeks. Most operations discover 5 to 15% unexplained shrinkage once counts are compared to outbound loads. That missing inventory usually costs more than expected.
Week 3: Validate Supplier Mix
Compare pricing and quality by grade, not just by supplier name. A low unit price can hide high breakage rates. Ask vendors for recovery and buyback terms and include those in your total-cost comparison.
Week 4: Implement Quick Wins
Standardize two or three pallet specs, lock pricing windows, and set a return policy for high-volume customers. Most teams can reduce annual pallet spend by 10 to 18% just from these operational changes.
At Chicago Pallet Solutions, we help customers run this audit with clear reporting and a realistic implementation plan that does not disrupt daily shipping.