Pallet Consultants Corp., a large recycler with facilities in Georgia and Florida has sought to service large accounts by setting up affiliates in markets where it does not have a direct presence. This is a model that we may see more of in the future as packaging users look to consolidate suppliers and centralized pallet management under one primary contact.

            With four facilities and a growing list of affiliated pallet suppliers, Pallet Consultants can quickly meet the needs of customers throughout the U.S. Gus has made arrangements with 16 other pallet companies across the U.S. to give Pallet Consultants the ability to retrieve and supply pallets in any state.

            Companies that choose to become affiliates of Pallet Consultants must sign non-compete agreements. "They can’t solicit our customers," said Gus, adding that it is "basically a broker arrangement."

            Gus carefully screens prospective affiliates. It is not enough simply for a pallet supplier to be located near a customer that Pallet Consultants wants to serve. The affiliate must have a good reputation in the pallet industry. "We make a contract with a pallet company that meets our caliber," he explained.