FAQs

Everything you need to know about The Pallet LOOP

What is The Pallet LOOP?

A transformational, circular economy, supply chain solution that enables and incentivises the RECOVERY, REPAIR and REUSE of pallets in the UK construction sector.

Why is The Pallet Loop needed?

The UK construction sector uses over 20 million timber pallets per annum yet reuses less than 10%. This is in stark contrast to the FMCG sector, which operates a closed loop pallet collection system that achieves 98% re-use. In the construction industry, the lack of pallet reuse generates vast volumes of waste (>250,000 tonnes) and means a huge amount of timber is used unnecessarily. Currently, the sector needs to cut down more than 6,000 acres of forestry per annum to feed an antiquated linear packaging model.

How will The Pallet LOOP make a difference?

Designed as a net carbon zero model, The Pallet LOOP is supporting the UK’s journey to zero avoidable waste. Rather than being cost engineered, LOOP pallets are designed and built for multiple trips. They therefore offer significant safety benefits for the entire supply chain. With an ISO 14040 compliant LCA, LOOP’s distinctive green pallets, have been engineered to last. Designed with durability in mind, they are, typically stronger than standard pallets used in the construction industry today.

How does The Pallet LOOP model work?

The Pallet LOOP issues pallets at the start of the supply chain to material manufacturers. Manufacturers distribute products on LOOP’s distinctive green pallets to their customers. Once pallets reach their final destination, registered recipients can call or email The Pallet LOOP to arrange a collection. Using The Pallet LOOP service works out significantly cheaper than putting pallets in skips plus The Pallet LOOP gives registered businesses up to £4 back for every green LOOP pallet returned in a reusable condition and pays £2 for LOOP pallets that are damaged or soiled but not beyond economical repair. The Pallet LOOP can also collect white pallets at the same time (charges apply). Back at its collection hubs, The Pallet LOOP checks, repairs, and reissues the pallets to building material manufactures, kick starting the LOOP again.

The Pallet LOOP is a business-to-business (B2B) service and registered return partners will typically include merchants, distributors, principal contractors and housebuilding companies, which are likely to accumulate a significant number of pallets.

Who can become a registered return partner?

The Pallet LOOP is a business-to-business (B2B) service and registered return partners will typically include merchants, distributors, principal contractors and housebuilding companies, which are likely to accumulate a significant number of pallets.

If they received the pallet from a builders’ merchant, they should be able to return any LOOP pallet to the branch in question when they next pop in store. Alternatively, they could ask the merchant if they would be prepared to back haul it to their branch the next time they make a delivery.

The Pallet LOOP states there is ‘up to’ £4 available for every green pallet that gets put back into the LOOP by registered return partners. What does this mean exactly?

All good condition green LOOP pallets that are collected by The Pallet LOOP from registered return partners – typically merchants, distributors, principal contractors and housebuilding companies – will trigger a PayBack of up to £4 per pallet. This PayBack is reduced to £2 if a pallet needs repairing or cleaning.

Why is there £4 available to registered return partners?

The £4 per pallet is both an incentive and an acknowledgement of the handling, loading and storage costs involved for registered return partners for collating and storing pallets in sufficient quantities and organising returns to The Pallet LOOP.

Why are you launching The Pallet LOOP now?

There has never been a better time to launch The Pallet LOOP. Amplified by the pandemic and inflationary pressures, resources are scarcer and more expensive than they have ever been. This situation – and concerns about climate change – is leading companies to seek alternative solutions that are less wasteful than traditional practices. There is a growing consensus that linear ways of working are unsustainable, and that waste is unnecessary. Sustainability and circular economics are driving a new era of eco-innovation. The Pallet LOOP is leading the drive for change in the transportation of building materials – providing a simple solution to a problem that has been increasing in size for many years.

What is the difference between a white pallet and a green pallet and why is there a difference in how they are costed / credited?

White pallets are typically single use pallets, the likes of which building materials are – predominantly – delivered on today. There is thought to be 2500+ specifications of white pallets in circulation in the UK construction sector – most of which are skipped or scrapped after just one use. This is costly from an environmental perspective – wasting a precious natural resource. It is also pricey with The Pallet LOOP estimating it costs around £8 to dispose of one pallet via a skip – depending on where you are in the country. The Pallet LOOP’s green pallets are different by design and have been engineered to last and be used again and again. To ensure these pallets are collected and reused, The Pallet LOOP will offer registered return partners up to £4 for every pallet they put back in the LOOP.

Will The Pallet LOOP collect from general builders / householders and pay them up to £4 back?

The Pallet LOOP is a B2B service and will only collect from registered return partners that are likely to accumulate a significant number of pallets in quantities will meet either the minimum collection threshold for its 10-day service or who can justify the costs associated with its 72-hour collection service, which has an associated fixed fee.

Why does The Pallet LOOP not collect from general builders / householders?

It would not be economical or environmentally friendly for The Pallet LOOP to pick up one or two pallets here and there from householders or general builders nationwide. Any householders or general builders that end up with a green LOOP pallet are advised to return them to their nearest Pallet LOOP registered return partner. For example, this could be the merchant they received it from in the first place. In doing so, they will save any costs associated with getting rid of pallets via other means including skips – which can cost up to £8 per pallet, depending on skip prices, which vary nationwide.

What should general builders do with any green pallets that they end up with?

If they received the pallet from a builders’ merchant, they should be able to return any LOOP pallet to the branch in question when they next pop in store. Alternatively, they could ask the merchant if they would be prepared to back haul it to their branch the next time they make a delivery.

What incentive is there for general builders / householders to return green pallets to merchant branches?

Taking green pallets back to builders’ merchants – the next time they go to a branch to get more materials – will work out cheaper for smaller builders / householders than putting pallets in skips. The Pallet LOOP estimates that putting a pallet in a skip can cost up to £8 depending on skip prices, which vary nationwide.

What should homeowners / DIYers do with any green pallets they end up with?

If they received the pallet from a builders’ merchant they should be able to return the pallet to the branch in question. Alternatively, they could ask the merchant if they would back haul it to their branch the next time they make a delivery.

How long will it take for the £4 to be processed / paid back to registered LOOP users / return partners?

In most cases the PayBack will appear as a credit on the invoice for the collection service. This means the PayBack will be realised in line with the agreed payment terms with the registered returns partner.​

How do companies sign up to be a registered return partner?

Signing up is simple. Email setmeup@thepalletloop.com and a member of the team will be in touch within three working days to discuss requirements.

Is £4 enough of an incentive to return pallets?

The Pallet LOOP believes that its £4 payback is enough of an incentive. Add in Government targets for waste and carbon, changes to packaging taxes and the cost savings that end users will make from using The Pallet LOOP’s collection service instead of putting pallets in skips, and it’s a solution that really stacks up.

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