Delay in delivery time of wood can lead to high costs

The enormous price increases of wood have been the headlines in recent months: due to the increased demand and scarcity in the market, the price of a new pallet has doubled compared to last year.

A huge price increase, which in particular drives up costs for the user, because the costs of packaging are often passed on via the product price. And this is repeated with every delivery, because the pallets are only used once and are often destroyed afterwards. Waste of money, don't you think? But these unnecessary costs are not the only problem that arises in logistics: If the demand for goods remains the same or will even increase, the need for pallets to transport these goods also increases.

These deliverables can be products ordered by consumers, but also semi-finished products or parts that are used in various industries, such as construction. New construction projects are springing up like mushrooms due to the high demand for houses, which has also increased the demand for building materials. Materials for the new construction of houses, such as facade cladding, bricks and roof tiles, are placed on pallets for deliveries to traders and construction sites. But also parts for the car industry or other production environments, which are transported on wooden pallets. Unfortunately, many of these pallets disappear as waste to a recycling company after delivery of the goods.

The Dutch economy is expected to return to pre-corona levels by mid-2022. The demand for goods, both finished and semi-finished products, will therefore only increase. And with it the demand for pallets to transport these goods. Getting wood in time to produce new pallets has become a challenge for many buyers. Due to its scarcity, wood is difficult to obtain and the delivery times of wooden packaging materials have increased enormously as a result. A shortage of wooden pallets is the result. Limited availability of packaging materials can mean that parts are not delivered on time, causing these industries to delay production. This may result in high costs.

The solution to this problem is simple: The pallets already in circulation can easily be reused. Instead of recycling and using them as raw materials for chipboard, for example, they can be reused, extending their lifespan. Long delivery times of new pallets are thus avoided, because the pallets do not have to be produced new, but only have to be returned from the end user. Reuse of the pallets extends the life cycle, making the purchase of new pallets unnecessary.

Recovering these delivered pallets is 2Return's specialty: we offer complete management of logistics items, including wooden pallets. We take care of the collection of the items from the end users, the sorting of the various types of pallets, possible repairs and then the return delivery to your production location. In addition to the operational matters, we also offer the possibility to keep track of the balance of the pallets in circulation: this way it is made clear where the pallets are located and we can take action if the numbers of pallets at your customers' locations are too high. In consultation with you or your customer, we organize the recovery of those pallets, so that they can be put back into use quickly.

Do you have questions about how 2Return can guarantee the availability of your pallets? Contact us via info@2return.nl or call us on +31(0)499 496 590.