Strategic Sourcing for
Chemicals Supply Chains

Chemical supply chains face unique risks: costly damage, strict safety standards and waste concerns. Millwood helps chemical manufacturers consolidate vendors, engineer compliant pallets and crates and implement recycling programs that cut costs and strengthen sustainability.

Why Strategic Sourcing Matters in Chemicals

The chemical industry depends on precision and compliance. Pallets and packaging aren’t just a cost line — they directly impact product safety, plant efficiency and ESG results.

In addition to engineered pallets and crates, Millwood provides CP pallets — the standardized chemical pallet family (CP1–CP9). These designs are widely used across the industry to safely carry 55-gallon drums, FIBC bags, and other heavy containers. By integrating CP pallets into strategic sourcing programs, chemical manufacturers gain consistency, compliance and cost control across multiple facilities. Learn more about CP Pallets ›

Challenges include:

  • High Cost & Over-Engineering: Many chemical manufacturers overspend on pallets that are built far stronger than needed. Others under-engineer, risking leaks, spills and claims.
  • Complex Vendor Networks: Plants often source from multiple pallet suppliers, creating accountability gaps and inconsistent specs.
  • Risk & Scalability: Multi-site operations need reliable, compliant packaging that scales across facilities and meets DOT, OSHA and international regulations.
  • Sustainability Pressures: Chemical waste already draws scrutiny; sourcing landfill-bound pallets compounds ESG compliance difficulties.

Millwood addresses these pain points with vendor consolidation, engineered right-fit pallets and recycling programs that eliminate waste and create measurable savings.

Are Your Pallets Costing You More Than They Should?
Chemical manufacturers often overspend on pallets that exceed requirements — or lose millions from packaging that isn’t engineered for the job. Millwood designs right-fit solutions that balance cost, compliance and safety.

A Few Ways We Work With the Chemicals Industry

Use Case 1: Preventing Hazmat Damage

Many chemical manufacturers rely on CP pallets as part of their packaging standards. These pallets are built for high-risk loads like hazmat drums and bulk powders, and Millwood tests each solution in our Packaging Science Lab to ensure safe transit without overspending on over-engineered designs.

→ Learn more strategies in the Strategic Sourcing Report.

Use Case 2: Standardizing Across Plants

Multiple facilities were buying different pallets from local vendors, creating inefficiencies. Millwood consolidated sourcing, standardized specs and reduced total spend.

→ Explore more in the Report.

Use Case 3: Balancing Cost & Compliance

A leading chemical manufacturer was paying for overbuilt pallets to “play it safe.” Millwood tested loads in our Packaging Science Lab and engineered a right-fit solution that cut costs while maintaining compliance.

→ See more examples in the Strategic Sourcing Report.

Strategic Sourcing Report for Chemical Packaging

Download the Strategic Sourcing Report for Chemicals

5 Proven Ways to Strengthen Your Supply Chain:

  • Eliminate redundant vendor costs

  • Engineer right-fit pallets for heavy products

  • Scale solutions across multiple plants

  • Prevent costly product damage

  • Improve ESG results with recycling programs

See How We've Helped Others

When a national packaging provider faced rising freight costs, safety risks and product damage from inconsistent crate construction, they needed a scalable solution. Working together, we and our partner engineered an integrated packaging system that combined corner protection with custom crate design to strengthen performance and eliminate inefficiencies.

Through collaboration, testing and process control, we delivered consistent quality, improved safety and reduced total cost per unit — proving that partnership drives stronger results than competition ever could.

  • Reduced total cost per unit by 10% through optimized crate design and stacking efficiency
  • Shipped 3.4 million linear feet of product annually with zero safety incidents since launch
  • Delivered consistent, high-quality protection through a unified engineering and supply approach

FAQs About Building Materials Packaging and Supply Chain

Yes — recycled pallets can safely support many chemical products when properly engineered. Millwood inspects and grades recycled pallets to meet compliance and load requirements, ensuring performance without unnecessary cost.

Recycled options can reduce total spend and improve ESG scores by diverting materials from landfills. Many chemical companies adopt hybrid programs with both new and recycled pallets, balancing compliance with sustainability.

Hardwood pallets are often chosen for heavier drums and totes, while softwood may be sufficient for lighter chemical loads. The key is proper engineering based on your product weight, handling and compliance requirements.

Millwood tests pallet strength, durability and fit for each application in our Packaging Science Lab, ensuring you don’t overspend on materials you don’t need — or risk using pallets that won’t hold up.



CP pallets (short for chemical pallets) are a series of standardized pallet types designed specifically for chemical supply chains.

Available in formats CP1 through CP9, they support a range of applications from drums to bulk bags. Millwood supplies CP pallets engineered for strength and compliance, helping manufacturers prevent costly spills and streamline packaging across plants. Explore CP Pallet solutions ›

Chemical products are sensitive to leaks, damage and regulatory penalties. Pallet design impacts everything from how stable a drum sits in transit to whether loads pass DOT inspection.

Millwood engineers right-fit pallets and crates for chemical applications, preventing over-engineering costs and under-engineering risks. Proper design saves money, improves safety and protects your brand.



Strategic sourcing consolidates multiple suppliers, standardizes packaging specs and reduces risks across facilities. For chemicals, it means every plant uses compliant, cost-effective pallets that perform consistently in transit.

Millwood helps chemical companies scale packaging programs, cut redundant costs and improve sustainability — while reducing downtime and risk exposure.

Yes — Millwood designs export-ready pallets, crates and packaging that comply with international regulations, including ISPM-15 heat treatment requirements.

Whether shipping chemicals domestically or overseas, Millwood ensures your packaging meets compliance standards, protects product integrity and passes audits.



Solution Providers to Help You Scale Smarter

Packaging Science Lab

ISTA-certified testing simulates real-world transit conditions, ensuring every pallet, crate and solution performs reliably.

Custom Design Capabilities

From engineered pallets to specialized crates, Millwood designs packaging solutions tailored to your products’ durability and transport needs.

Sustainability Initiatives

Repair-and-return programs, pallet recycling and circular solutions that cut costs while meeting ESG goals.

Let's See How We Can Work Together

Discover how strategic sourcing with Millwood can simplify your supply chain and deliver measurable results. 

Download The Strategic Sourcing Report