Repair-and-Return Program Saves Aerospace Manufacturer Over $1 Million and Diverts Thousands of Pallets from the Waste Stream

A Hidden Source of Waste

A major aerospace manufacturer was losing money on an invisible problem: pallets. Each custom steel-reinforced pallet used to transport aircraft wheel components cost more than $20 to produce, yet thousands were being discarded after minimal use. 

Every facility managed its own process, with no shared recovery system or asset tracking in place. The result was a costly and unsustainable cycle: constant pallet replacement, mounting dumpster fees and wasted materials that could have been repaired and reused.

Seeing Value Where Others Saw Scrap

When Millwood’s regional team visited the operation, they recognized an opportunity to turn waste into value. Rather than selling new pallets, they proposed a closed-loop repair-and-return program designed to recover, refurbish and return the same pallets at a fraction of the cost. 

To make the program work, Millwood invested in specialized equipment capable of repairing the customer’s steel-reinforced designs and established a Vendor Managed Inventory (VMI) process to manage packaging supplies across their regional sites. This proactive service ensured consistent stock levels for corrugated, film, banding and tooling materials while giving the customer full visibility into usage and replenishment cycles.

Engineering Durability Through Design

While the operational system facilitated efficiency, the engineering work created savings. Using Packaging Design Software and hands-on experience, Millwood analyzed why the original pallets were failing and redesigned them for greater durability. 

Forklift impacts had been damaging the lead boards (the most common failure point), so the design was adjusted with wider boards, stronger fastening patterns and added screws for reinforcement. 

These targeted improvements extended pallet life without over-engineering or adding unnecessary material cost – a hallmark of Millwood’s Packaging Science approach, which balances performance, efficiency and resource stewardship.

Results That Resonate

Since the program’s launch, the manufacturer has achieved $1,021,065 in verified savings, with 3,473 steel-reinforced pallets repaired and returned to active use. 

Beyond the direct cost reduction, the program significantly decreased waste hauling expenses and freed up valuable space once occupied by scrap wood and discarded pallets. 

These consistent results earned Millwood a three-year sourcing agreement, transforming what began as a single product initiative into a broader supply partnership covering multiple packaging categories and regional locations.