Definition
A technology that uses electromagnetic fields to automatically identify and track tags attached to objects, including pallets. RFID tags embedded in or attached to pallets enable real-time tracking of pallet location, movement history, and trip count throughout the supply chain. RFID offers advantages over barcodes by allowing non-line-of-sight reading and simultaneous scanning of multiple tags. Major pallet pooling companies use RFID for asset tracking and inventory management.
Related Terms
Warehouse Management System
Software that controls and optimizes warehouse operations including receiving, putaway, picking, packing, and shipping of palletized goods. A WMS tracks pallet locations, manages inventory at the pallet level, and directs material handling equipment. Pallet standards (dimensions, labeling, barcode/RFID) must align with WMS requirements for accurate tracking. Modern WMS platforms integrate with automated handling systems, conveyor sortation, and transportation management systems.
Pallet Pooling
A logistics model in which pallets are rented from a pooling provider rather than purchased. The pooling company manages the entire pallet lifecycle — manufacturing, distributing, collecting, inspecting, repairing, and reissuing pallets across a shared network. Pallet pooling can reduce capital costs, eliminate pallet management complexity, and improve sustainability through professional maintenance and high reuse rates. Major pooling companies include CHEP, PECO, and iGPS.
Closed Loop
A pallet supply chain in which pallets are shipped from origin to destination and then returned to the origin point for reuse, creating a circular flow. Closed-loop systems maximize pallet reuse, reduce waste, and lower per-trip costs. They require effective tracking, collection, and return logistics. Companies like CHEP and PECO operate large-scale closed-loop pooling systems across North America and Europe.
Returnable
A pallet designed for multiple uses with a built-in system or agreement for return to the shipper or pooling provider after delivery. Returnable pallets are built to higher quality standards to withstand many handling cycles and are tracked through deposit systems, pallet exchange agreements, or pooling programs. The returnable model reduces per-use costs and environmental impact compared to single-use pallets, but requires effective reverse logistics to be economically viable.
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Our glossary contains 165+ terms covering everything from pallet construction to compliance regulations and industry organizations.