Sweden – Major Swedish retailer Ikea is giving up wooden pallets in favour of single-use, recyclable paper versions. The home goods and furniture giant reportedly uses 10 million pallets per year worldwide and expects to save 10% on transportation costs by making the switch.
‘We don’t know if the paper pallet will be the ultimate solution, but it’s better than wood,’ Bloomberg News has been told by Jeanette Skjelmose, Sustainability Manager at Ikea’s supply chain unit. She adds that the corrugated paperboard pallets are able to support a load of 1650 pounds and will be recycled after their one-way trip.
The paper versions are smaller and 90% lighter than their wooden predecessors. As a result, Ikea expects to save nearly US$ 2 million annually by reducing the number of truckloads and containers it ships. But it will also have to spend nearly half that amount on purchasing stock and new fork-lifts, it notes.