Recyclers Unite to Form National Service Provider

By Chaille Brindley

In recent years, PALNET founders, themselves highly successful regional pallet companies, have come to an important realization.  Even though they enjoyed excellent business relationships with their customers, the dynamics of the logistics industry were changing.  These, in many cases long term partnerships, could now be better served by a national level service which would allow pallet dock sweep providers to supplement that local service with the additional benefits of a national program.  This has resulted in the formation of Premier Asset Logistics Network LLC or PALNET.

The development of PALNET reflects the changing reality of the core supply in the country. “The industry has been changing. More and more retailers are becoming national players. Pallet cores are going to recyclers that can service national accounts,” said Michael Smith, the COO of PALNET.   If you want to know what is going on, all you need to do is follow what the major retailers are doing.

PALNET combines the resources of nine major recyclers across the country with 28 facilities and more than 1,000 full-time employees. Each of the companies involved in PALNET are successful regional pallet companies according to Michael. Many of them are some of the most progressive leaders in the industry. The owners of PALNET each contributed capital and are the service providers in their region to service national accounts. They get the benefit of a large network without having to give away control of their individual companies. 

PALNET is a new asset management company totally committed to serving the growing market for national pallet dock sweep programs as well as related asset management and recovery offerings.  Its initial emphasis is to provide coast to coast pallet dock sweep services for large national companies.  Such programs will include excess pallet purchase and removal, pallet sortation, repair, supply, and other customized solutions including logistics services.  PALNET offers centralized reports via its online tracking and account management software. Customers can have one contact for all asset related activities instead of multiple contacts depending on the region. Michael said that PALNET will give the customers what they want when it comes to pricing strategies. “We will customize solutions for our customers evolving needs”. According to Michael, PALNET has been very well received and they are in final negotiations with several national customers.  He expects many national sales opportunities to quickly evolve with the amount of excitement that PALNET is generating.

Many recyclers may be curious if they can get in on the action.  Michael said, “We are not looking for partners or investors, but we will be looking for strategic alliances as needs develop and we will be making the appropriate contacts at such a time.”

Before agreeing to take the helm of this new startup company, Michael Smith worked as director of operations for PECO, a national pallet leasing company in the U.S. Mike also was a director of distribution for two national grocery manufacturing companies before joining PECO.  

PALNET will be a leading provider of unit-load related logistical services to industry, initially focusing on national-level dock sweep programs of pallets and other distribution residuals.  The company will deliver superior value to its customers through a strong national program that provides competitive compensation for excess pallets, while providing the many benefits in terms of cost effectiveness through elimination of inefficiencies and redundancies, as well as the provision of control and visibility that cannot be fully leveraged through local or regional contracts.  PALNET will be a successful vehicle in its own right for its customers, shareholders and employees, while allowing its founders to continue and enhance the value proposition of their relationships with current customers.

PALNET was conceived just two short years ago.  The company officially formalized and launched in Feb 2005 and has just begun to publicize its services. Headquarters in Newcastle, Del., PALNET may be a name you hear a lot more about in the future.

The Life Cycle of a PALNET Pallet. The Greenest Link in your Supply Chain.

PALNET pallets are made from the unusable trim left over from the lumbering process which might
otherwise end up in landfills.