We Make Pallets SmarterTuesday, August 21, 2018
With the name “Green OX® Pallet Technology”, it’s reasonable to assume that we make pallets. And we do – we make fully recyclable corrugated cardboard pallets that weigh up to 80% less than traditional wood pallets. At scale, they cost less too.
“Green” stems from the fact that our pallets and bulk bins reduce fuel use, waste, and truck movements (each of which represent cost savings).
“Technology” because we have brought smarter engineering, production, and design to the pallet industry. For example, with Edson Machinery, a ProMach company, we built a one-of-a-kind assembly machine that vertically integrates our pallets within the manufacturing process.
When Green OX came to market in 2015, a common refrain was “corrugated pallets don’t work”. With beta clients and licensing arrangements in Latin America, Africa and the U.S., minds have opened. Recently, our pallets successfully shipped >2,000 lbs in a sea container for more than two weeks.
Today, discussions tend to focus on price and value. We like when the discussion goes there because it gives us the chance to explain how our pallets are a cost-annihilating transit system that solve real-world supply chain problems and save tens of millions of dollars per year at high volumes.
Airfreight: Green OX pallets are estimated to save $30 million dollars for every 1 million pallets airfreighted from China vs. wood pallets that weigh 30 lbs.
Shippers: For cube-outs, our pallets can increase product-per-truck by 20%. For weight-outs, an additional 1,000 lbs of product can be added to each truck. In both cases, fewer trucks.
Retailers: By switching its global supply chain from 100% wood pallets to 100% corrugated pallets, IKEA saved billions of dollars and cut its carbon footprint dramatically. We look forward to retailers stealing a page from IKEA’s very public playbook.
Mexico Manufacturing: Wood pallets in Mexico cost extra because of heat-treatment requirements; corrugated pallets do not incur this added cost.
Eliminating Reverse Logistics Costs: All logisticians understand that reverse logistics drive up cost and emissions. Other than the recycling truck that already comes to a customers’ facility, our pallets do not require reverse logistics. Pooled and GMA wood pallets require massive reverse logistics.
In 2015, we looked at the wood pallet industry and asked: “what is the aggregate cost (both financial and environmental) of moving, landfilling or recycling, chipping, etc. two billion wood pallets that weigh 40-70 pounds apiece? How many trucks must be driven to the pickup point, loaded, driven out, and then unloaded for recycling or landfilling? (The answer is 5 million.) How much energy does this consume? How much pollution and greenhouse gas emissions result from this?
Our analysis led us to a conclusion: the 20th Century pallet industry is ripe for disruption. Three years later, corrugated pallets are in their infancy, but the disruption is coming. Green OX is honored to lead this change by saving our customers money and solving the logistics headaches that keep our clients awake at night. It’s who we are.
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