The Consumer Brands Association, previously known as the GMA or Grocery Manufacturers Association, recommends 48×40 as the preferred pallet size for distribution. While most businesses and vendors recognize 48×40 pallets as a highly popular pallet size, few companies realize how many mandates require industries to use 48×40 pallets. In this blog, we’ll discuss the different industries that mandate 48×40 pallets from their vendors.
In addition, most businesses do not realize how beneficial using 48×40 pallets can be for their revenue. To learn more about industries, companies, and customers who mandate 48×40 pallets from their vendors, continue reading our blog below.
Who Mandates the Use of 48×40 Pallets?
According to the Consumer Brands Association, an estimated 30 percent of all pallets in use globally are 48×40 pallets. That’s not a surprise, though, for most businesses that use pallets frequently. Not only have 48×40 pallets been the standard dimension for pallet containers since 1908, but these pallets are also incredibly durable and accommodating to most products.
Since 48×40 pallets are so reliable, several industries mandate their use over other possible pallets. The two largest industries with 48×40 pallet mandates are the grocery and beverage industries.
Unsurprisingly, ’the grocery industry is the largest trade with a 48×40 pallet dimension mandate. After all, the GMA first created these standard pallet dimensions in 1908, and they’ve continued to enforce this standard as they strive for the best food safety and quality for consumers.
The GMA also mandates 48×40 pallets to make these pallet sizes easier to recycle.
Industries Without 48×40 Mandates
While other industries may benefit from using 48×40 pallets, many don’t require their use. For example, the roofing industry does not require the use of 48×40 pallets, as they often require pallets with specific specifications for their businesses.
In general, most industries that can fit consumer products on 48×40 pallets will use this standard size. Although some businesses still opt for custom-size pallets, they could be missing out on several advantages.
How Do Businesses Benefit From Standardizing Their Pallets?
Apart from product specifications requiring custom-sized pallets, there are plenty of ways that businesses benefit from switching to standard-sized pallets. Review some of the best advantages of standardizing your pallet sizes below.
Lower Packaging Costs
One of the best advantages of switching to standard 48×40 pallets is that it lowers a business’s packaging cost. Compared to most other custom pallet sizes, standard 48×40 pallets can hold loads of considerable weight.
In fact, according to the Consumer Brand Association, standard 48×40 pallets can hold up to 4,600 pounds. Since these pallets can hold larger loads, businesses can fit more products into each pallet they use. As such, they can send the same number of products in fewer shipments, reducing their overhead.
Standard GMA pallets also have several environmental benefits.
Lower Recycled Pallet Prices
Another benefit that businesses receive when they switch to standard-size pallets is lower prices on recycled pallets. Since companies most commonly use 48×40 pallets, suppliers have more options to use less expensive recycled pallets.
For example, when suppliers shop for recycled custom pallets, they have a much more limited selection. Even when suppliers come across suitable recycled custom pallets, these containers are often much more expensive than 48×40 pallets because they are lower in supply.
More often than not, suppliers pay high acquisition costs to purchase broken pallets or 48×40 pallets, then spend even more money on labor to sort and repair these recycled pallets into custom sizes. If GMA pallets can accommodate a business’s product, switching to this standard pallet size will save them significant buyback and repair costs.
Revenue Streams From Selling Used GMA Pallets
Since 48×40 pallets are the standard size for pallets in the U.S., selling these containers can also produce a more significant revenue stream for suppliers. For example, with more suppliers shopping for 48×40 pallets, selling used standardized pallets is much more profitable compared to custom-sized pallets, for which you might have to wait for customers.
Not only is there a greater demand for GMA pallets, but there is also a GMA pallet grading system that ensures that companies sell pallets for a fair price. With this quality assurance system in place, businesses are more likely to profit from selling their used 48×40 pallets. Review the pallet grading system to ensure that your business can make the most money on your pallet return.
One of the most significant ways businesses benefit from using the standard 48×40 size for pallets is by avoiding removal costs.
When businesses use standard-sized pallets, they can sell these pallets for a rebate. Since 48×40 pallets have a greater value than customized pallets, selling back standardized pallets will always be more convenient and profitable for businesses.
In comparison, companies that accumulate non-standardized pallets will ultimately have to pay to have these materials removed.
48×40 pallet mandates help businesses benefit from this cost avoidance.
Looking at all the different industries, businesses, and customers who mandate 48×40 pallets from their vendors, it’s easy to see why many industries require this standard pallet size. Not only do these pallets meet the needs of different industries safely, economically, and sustainably, but GMA pallets also provide significant benefits to businesses.
When businesses swap their custom pallet sizes for standard 48×40 dimensions, they’re able to lower their packaging costs, lower their recycled pallet prices, increase their revenue from selling used pallets, and generate profits from selling wood waste.
If your business does not already take advantage of the benefits of using 48×40 pallets, now may be the perfect time to reconsider.
Here at First Alliance Logistics Management, we offer pallet resourcing for businesses. We use our years of expertise in the pallet industry to provide management advice and guidance for pallet users and suppliers.
Whether you need help estimating the value of your used pallets or your business needs warehouse pallet management advice, we’ve got you covered.
To learn more about First Alliance Logistics Management’s dedicated team and services, check out our website for additional information.