How Pallet Drop Trailer Programs Work: A Simple Guide

by Repackify
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What is a Pallet Drop Trailer Program?

A pallet drop trailer program is a way to make managing pallets easier for both the customer and the pallet supplier. In a typical setup, a pallet company delivers a full trailer of pallets to a warehouse or facility.

Traditionally, this is done with a "live load," where the truck arrives, unloads the pallets, and then leaves. But with a drop trailer program, things are different. The pallet supplier leaves an entire trailer at the customer’s facility. This trailer acts as on-site storage for damaged or used pallets, allowing the customer to pull pallets as needed and store any unused ones until the next delivery or swap.

Live Loads vs. Drop Trailer Programs

Live Load

  • How It Works: A truck arrives at the facility with a full load of pallets. The customer needs to be ready to unload the pallets right away while the driver waits. Once the pallets are offloaded, the truck leaves.
  • Pros:
    • Quick delivery and pickup process.
    • It is cheaper in terms of freight costs.
    • No need for long-term storage space for a trailer.
    • Good for infrequent pallet deliveries or pick ups. For example if you order less than one truckload a month(616 pallets) it is typically better to use a live load
  • Cons:
    • Requires manpower to be ready for immediate unloading.
    • Risk of incurring detention fees or TONUs if unloading takes too long.
    • Puts pressure on the dock schedule, especially if there are multiple shipments happening.

Drop Trailer

  • How It Works: A truck delivers a full trailer of pallets, but instead of unloading immediately, the pallet supplier leaves the trailer on-site. The customer can unload pallets as they need them and store any extras in the trailer. When the trailer is empty or the pallets are used up, the pallet supplier picks it up and swaps it with a new full trailer.
  • Pros:
    • No rush to unload – pallets can be offloaded at a convenient pace.
    • Acts as on-site storage, freeing up valuable warehouse space. This can also help avoid OHSA fines that can come along with storing pallet incorrectly
    • Ideal for facilities that have a high and steady demand for pallets. Most pallet companies will not offer a drop trailer unless the customer is ordering multiple full semi truckload orders a month, ideally weekly or daily
  • Cons:
    • Requires enough yard or dock space to accommodate a trailer.
    • If not managed well, trailers can sit for longer than necessary, leading to potential fees.
    • It cost more to have a drop trailer left at your facility

How the Drop Trailer Program Works with Pallets

1. Original Quote and Consultation

  • A pallet supplier and customer will discuss the pricing and delivery of the pallets.
  • This is the best time to go over the option of a drop trailer. It’s important to be clear about the frequency of trailer swaps and the pricing differences between a live load and keeping a drop trailer on-site.

2. Trailer Drop-Off

  • The pallet supplier drops off a full trailer of pallets at the customer’s facility. This trailer stays on-site, serving as temporary storage.
  • The customer can take pallets from the trailer whenever they need them, keeping operations flexible. The trailer can also store any pallets that are unused or need to be returned.

3. Storage and Use of Pallets

  • The trailer functions as a mobile warehouse, offering storage space for pallets without taking up room inside the facility.
  • This setup is ideal for companies that regularly use pallets but lack enough indoor storage. Pallets can be accessed easily as needed, without causing clutter in the warehouse.
  • You should also be transport with the pallet company on what will be returned on the trailer. The most common issue that comes with drop trailers is companies storing random materials and junk in the trailers. This may result in fines or discontinuing the drop trailer service. Expectations should be set beforehand and followed with what is returned on the trailer . For example often times companies are interested in rebates for the their pallets and will have to follow certain standards

4. Pallet Return and Swap

  • When the trailer is empty or if pallets need to be swapped, the supplier returns to pick it up. If there are any unused or damaged pallets, they can be loaded back into the trailer for return.
  • The supplier then swaps the old trailer with a new one loaded with fresh pallets, ensuring a consistent supply without any disruption to the customer’s workflow.
  • When the trailer is received at the pallet yard, the pallets will be graded and rebates will be provided for good pallets

Technical Considerations for Managing a Drop Trailer Program

For a drop trailer program to run smoothly, there are a few technical points to keep in mind:

Yard/Dock Space:

  • A drop trailer requires enough outdoor space to park and access the trailer. This can be a challenge for facilities with limited yard area, so planning is crucial.
  • A designated spot for the trailer ensures that it doesn’t interfere with other operations.
  • This trailer will just sit there and take up space which may be an issue for some companies

Tracking Inventory:

  • Keeping track of pallet inventory is essential. This includes monitoring the number of pallets taken from the trailer and noting any damaged ones that are returned for recycling.
  • Many companies use simple tracking tools or software to keep tabs on what’s inside the drop trailer at any given time.

Scheduling Swaps:

  • Communication with the pallet supplier is key. It’s important to have a clear schedule for when the trailer needs to be swapped for a new one.
  • Having regular check-ins with the supplier can help avoid delays and keep the pallet supply steady.

Managing Costs and Rebates:

  • It’s essential to track any rebates for returned pallets. Some suppliers pay based on the quality of pallets, so careful sorting and inspection can maximize returns.
  • Costs associated with keeping the trailer on-site should be reviewed to ensure the drop trailer is a cost-effective solution compared to live loads.

Best Practices for a Successful Drop Trailer Program

To get the most out of a drop trailer program, here are some best practices:

Designate a Trailer Spot:

  • Set up a specific area for the drop trailer that’s easily accessible but out of the way of regular traffic. This keeps operations efficient and avoids congestion.

Plan for Recurring Deliveries:

  • If there’s a steady need for pallets, work with the supplier to establish a consistent delivery and pickup schedule. This keeps inventory levels balanced without overloading the facility.

Sort Pallets by Condition:

  • As pallets are taken from or returned to the trailer, sort them by condition. This makes it easier to handle returns and ensures that pallets eligible for rebates are accounted for.

Keep Communication Open:

  • Regularly communicate with the pallet supplier about delivery schedules, trailer swaps, and any pallet returns. This avoids surprises and keeps everything on track.

Conclusion

A pallet drop trailer program is a smart way to handle pallet deliveries, storage, and recycling. It offers flexibility, reduces pressure on the dock, and provides a convenient way to manage unused pallets. With clear planning, good communication, and effective space management, a drop trailer program can make logistics smoother for any operation that relies heavily on pallets. For high-volume users, it’s a reliable and efficient system that keeps the supply flowing and the warehouse running smoothly.

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