Ikea says switch to paper shipping pallets will save money
Furniture Today Staff -- Furniture Today, November 30, 2011
CONSOHOCKEN, Pa. — Retailer Ikea plans to stop using wood shipping pallets by January in a move that the company expects will cut $193 million, or 10%, from its annual transportation costs, a Bloomberg Businessweek story reports.
The story said the company uses pallets in 26 countries and expects that the compact profile of the new cardboard pallets it will use, which are thinner than the current wood pallets, will allow it to ship more goods.
Corrugated cardboard pallets can support 1,650 pounds, equal to wood, Ikea officials said in the story. Each pallet weighs about 5.5 pounds, compared to about 55 pounds for wood pallets.
Shipping industry professionals in the story questioned whether the cardboard pallets were strong enough and durable enough to withstand weather, and discussed other alternatives to wood pallets. They also questioned whether the cost savings will be as much as Ikea estimates.
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