By Bob Violino

Aug. 31, 2009—Pallets, the flat structures that support containers of goods, have become fixtures of many transport processes worldwide. They make it easier for manufacturers and shippers to load and unload heavy stacks of goods, and can decrease damage to products and containers, as well as increase storage efficiency. Some businesses employ disposable pallets, but on a large scale, they can be cost-prohibitive and adversely affect the environment. Other businesses use reusable pallets, but collecting empty ones is an added expense.

Japan Pallet Rental (JPR) addresses cost and environmental concerns through its pallet-loaning business. The company, founded in 1971 and headquartered in Tokyo, operates six branch offices in Japan, an office in Singapore and 116 pallet pool depots throughout Japan, including 16 with repair facilities. Its customers, from a wide range of industries, include Matsushita Electric Industrial, Nestle Japan Group, Nippon Oil, Procter & Gamble Far East, Sony Supply Chain Solutions and Sumitomo Chemical.

As the supply chain has become increasingly complex, the movement of pallets has also become more complicated—and the risk of pallets being lost or returned late has become greater.

In 2008, JPR rented 20 million pallets, generating $159 million in sales. The company's reusable pallets circulate in the Asia Pallet Pool system, an alliance of pallet rental companies whose pallets move between Japan, China, Korea, the Philippines, Singapore, Taiwan, Thailand, Vietnam and the United States. The use of standardized pallets that re-circulate among businesses in the region can increase efficiency by eliminating the issue of collection.