The pandemic taught every logistics professional a hard lesson about supply chain resilience. Container shortages, labor disruptions, and demand volatility exposed weaknesses that many companies didn't know they had — including in their pallet supply.
During 2020-2022, pallet prices spiked 200-400% in some markets as new pallet manufacturing couldn't keep pace with demand. Companies that relied on single-source pallet procurement found themselves scrambling, paying premium prices, or going without.
A resilient pallet strategy starts with diversification. Don't rely on a single pallet source, a single pallet type, or a single procurement model. Companies with the most resilient operations during the crisis used a mix of new, recycled, and repaired pallets from multiple suppliers.
Building inventory buffers is another key strategy. Just-in-time delivery is efficient in normal times, but it leaves zero margin for disruption. Maintaining a 1-2 week pallet buffer protects against supplier delays, transportation disruptions, and demand surges.
Recycled pallets provide natural resilience. Unlike new pallets, which depend on lumber mill output and pricing, recycled pallets draw from the existing pool of billions of pallets already in circulation. When new pallet prices spike, recycled pallets maintain more stable pricing.
Supplier relationship matters. During the crisis, suppliers who had long-standing partnerships with their customers prioritized those relationships over spot-market opportunism. Investing in a strong relationship with your pallet supplier — rather than always chasing the lowest price — pays dividends when disruption hits.
At Riverside Pallet Co., we never turned away a long-term partner during the shortage. Companies that had stood with us in normal times received priority allocation, stable pricing, and guaranteed supply. That's the value of partnership, and it's a lesson the industry hasn't forgotten.