Pallet procurement decisions are often made on upfront price, but operations performance depends on lifecycle economics.
Define Cost Per Trip
Use this formula: (purchase price + repair cost + loss cost - recovery value) divided by number of successful trips.
Include Handling Environment
High-impact facilities may consume pallets faster. Grade selection should match handling intensity.
Factor Recovery Value
Recycled pallets often retain resale value at end of life, improving the total equation.
Run Scenario Models
Model best-case and average-case assumptions. Procurement teams make better choices when variability is visible.
In many domestic networks, recycled pallets outperform new pallets on cost per trip without reducing reliability.