Listen to this articleBelow is our recent interview with Adam Pener, President at Green Ox Pallet Technology:
Q: Could you provide our readers with a brief introduction to Green Ox Pallet Technology?
A: Green OX Pallet Technology, LLC is the exclusive global provider of Green Ox pallets. We employ a unique and transformative point-of-use delivery model that gives Fortune 500 customers — and their suppliers — the ability to replace wood pallets with our lightweight, recyclable corrugated cardboard pallets throughout global supply chains. Our pallets are also the only corrugated pallets in the world that can be machine assembled.
Q: What is Green Ox Pallet Technology?
A: The Technology is comprised of more than 100 patents in dozens of countries, which translate into four key product sets. Most corrugated pallets have significant usage or geographical limitations. By contrast, Green OX pallets can replace wood or plastic in closed-loop, reuse-driven models in addition to the more traditional one-way corrugated pallet usage. We also dial up and down the strength to control cost. When clients need a “tank” to transport 2,000 lbs of produce from Latin America to Europe, we employ our 4 Series pallets. When clients need a low-cost, one-way pallet for domestic truck segments, our 2 Series does the trick.
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Q: What are the benefits of using it?
A: Put simply: cost savings, happier customers and reduced environmental footprint. An airfreight example describes all three: when a Washington state cherry exporter airfreights 1,500 lbs of cherries to Japan, it’s being charged by weight. Usually $3 / pound or so. Our pallets will save ~20 lbs = $60 in savings per pallet. The cherry exporter also does incur the cost for heat-treating wood pallets to meet export regulations. In Japan, the grocery store recipient of the Green OX pallet recycles it, receiving money for recycling versus paying to dispose of the wood pallet. News of happier customers spreads, which leads to more cherry sales to Japan. Finally, both the end-customer and shipper have reduced their carbon footprints.
This is why one of the world’s largest supermarket chains is evaluating a global policy requiring its produce suppliers to ship on Green OX pallets.
Q: What makes your delivery model unique and transformative?
A: Most companies produce their corrugated pallets at a single location, limiting distribution. For example, if Proctor & Gamble were to begin using corrugated pallets in Indiana, it would have no way to utilize the same pallets in Germany, or Brazil, etc. Green OX pallets are produced anywhere in the world to meet point-of-use demand. We call this “horizontal scale.” Our pallets are also the only corrugated pallets in the world that can be machine-assembled to deliver the millions of pallets that a single Fortune 500 facility can use each year (i.e., “vertical scale”). Meeting horizontal and vertical scale has been a major barrier to entry for corrugated pallets that Green OX has broken.
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Q: What cost savings opportunities does Green Ox Pallet Technology offer?
A: At volume, clients can save 8 or 9 figures annually. Savings are realized through reduced weight and improved cubing, which translates to more product per truck and fewer trucks to ship the same amount of product. Also, Green OX pallets eliminate reverse logistics in some distribution systems and, in others, can be reused to reduce cost. The first line of savings are hard dollar costs vs. wood, especially in export.
Q: What are your plans for the future?
A: The U.S. market has been especially slow on the uptake, so we’re proving several usage models in Latin America, Europe and Asia. We’re most excited about the possibility of a national corrugated pallet system in one European country. Once established, the global market should tip.
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