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The Evolution of Sustainable Pallets

During World War II, the American Military stationed in Australia left a peculiar present behind when they departed in 1945: blue CHEP pallets. These pallets were initially intended for handling military supplies, but they were left scattered across the Gold Coast after the war. Despite their unexpected appearance, the Australian government recognized their usefulness and began to adopt them, eventually leading to the privatization of the Commonwealth Handling Equipment Pool (CHEP) in 1958.

Today the blue CHEP pallets are ubiquitous in supply chains around the world, with a pool of approximately 300 million.

The big picture is that the world is moving faster than ever before. What the Australian government did in 1958 was circular thinking at its finest. But times have moved on. With the increase of products being transported around the globe, the environmental impact grows larger every day. And the onus is on companies like us to lead the charge, stay ahead of the curve, and champion the latest innovations in our space. Enter Hexcore.

 

Hexcore: A Forward-Thinking Partnership

At GPA Global, we’re under no illusion that the environment takes precedence in every business decision. We know that companies are looking for ways to minimize their impact on the planet without sacrificing their bottom line.

That being said, we unequivocally believe sustainability and profitability can be synonymous. And our partnership with Hexcore is a testament to that belief.

Hexcore is a company that operates in the Materials Science and Machinery industry, with a primary focus on producing circular packaging solutions. Their innovative corrugated pallet structure is fully customizable, sustainable, and cost-effective.

 

 

So where does GPA fit in?

This year we began leveraging the award winning Hexcore technology, to roll out to our clients. We have exclusive rights to the equipment and production in North America. Meaning we can produce and sell them at lower costs to standard pallets.

Diving Into the Data: Why Switching to a Corrugated System Makes Fiscal Sense

 

  • Weight: Corrugated cardboard pallets weigh around 25-30 pounds, while wooden pallets can weigh between 50-80 pounds, depending on the type of wood used. Using lightweight, high-performance pallets has been estimated to result in annual cost savings of $1.8 billion for the global logistics industry.

 

  • Cost: Corrugated cardboard pallets are generally less expensive than wooden pallets, with prices ranging from $7-$20 per pallet compared to $10-$30 per pallet for wooden pallets. Hexcore takes it up a notch. Their pallets can be up to 50% less expensive than traditional wooden pallets.

 

Championing Profit and Planet

 

Beyond the financial benefits, the solution is good for the planet as well as profit. The corrugated pallet system is made entirely from paper materials, making it fully recyclable. It requires minimal packaging and assembly, with 2-way or 4-way use designs and reusable options available. This not only reduces labor requirements and headcount but also offers a high paper reclaim value by allowing for easy repurposing or recycling of materials.

 

 

The system is also much lighter than traditional pallets, which reduces transportation costs and emissions. By allowing for more efficient stacking, it also reduces warehouse space and storage requirements, further optimizing the supply chain.

Beyond Packaging

At GPA we support your brand’s growth by thinking big, beyond packaging. We invest in the capabilities needed to deliver seamless packaging solutions without limits. Our solutions are designed to optimize every aspect of your supply chain, from mitigating transportation costs to reducing carbon emissions.

To learn more about our partnership with Hexcore and how our corrugate pallet system could integrate into your packaging solution, contact Mike Marcinkowski, our head of R&D and Material Science, at: mmarcinkowski@gpaglobal.net

18 April 2023
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