Strategic Sourcing for
3PL Packaging Supply Chains

Third-party logistics providers (3PLs) operate under tight contracts where every penny counts. Millwood helps 3PLs cut costs, standardize packaging and secure supply chains with engineered pallets, crate solutions and nationwide recycling programs.

Why Strategic Sourcing Matters for the 3PL Packaging Industry

3PLs handle contract packaging, warehousing, logistics and shipping on behalf of some of the world’s largest brands. With razor-thin margins and unforgiving service agreements, supply chain efficiency is non-negotiable.

Challenges include:

  • Cost Pressures: Pallets and packaging are a top spend category. Overspending on over-engineered pallets—or losing money on under-engineered ones—both cut into margin.
  • Risk & Scalability: Serving multiple plants and contract sites requires consistent packaging that works everywhere.
  • Supply Chain Security: Missed shipments or product damage can erode customer trust.
  • Sustainability Requirements: Brand partners demand recycling programs and ESG accountability.

Millwood addresses these pain points by consolidating vendors, designing right-fit pallets and crates and implementing recycling programs that reduce both costs and landfill waste.

Are Your Pallets Costing You More Than They Should?

Many 3PLs rely on pallets that are either overbuilt (wasting money) or underbuilt (causing damage and claims). Millwood engineers the right fit for your application, balancing performance and cost.

Ways We Work With the 3PL Packaging Industry

Use Case 1: Ensuring Consistency Across Sites

A 3PL managing multiple warehouses struggled with inconsistent pallet specs. Millwood standardized packaging across facilities, reducing product damage and simplifying procurement.

→ Learn more strategies in the Strategic Sourcing Report.

Use Case 2: Reducing Packaging Spend Under Tight Contracts

With slim margins, one 3PL needed to lower pallet costs without sacrificing quality. Millwood’s engineered design cut unnecessary materials, saving thousands annually.

→ Explore more in the Report.

Use Case 3: Supporting Complex Client Needs

A contract packaging 3PL serving the energy sector required both strength and sustainability. Millwood delivered engineered GMAs and a recycling loop that kept ESG goals intact.

→ See more examples in the Strategic Sourcing Report.

Strategic Sourcing Report for 3PL Packaging

Download the Strategic Sourcing Report for 3PL Packaging Industry

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

Reducing Risk for a Leading Building Materials Manufacturer

  • $2M+ annual savings

  • 96,000 pallets repurposed each year

  • 4,800 cubic yards of wood waste diverted

A global building materials manufacturer was spending over $60,000 a month on pallet disposal while purchasing costly replacements. Millwood built a dedicated repair-and-return facility less than 10 miles from their warehouse. The result: over $2M in annual savings, 96,000 pallets recycled and measurable progress toward ESG goals.

FAQs About 3PL Packaging and Supply Chain

Yes, recycled pallets are widely used by 3PLs because they lower costs, support sustainability goals and still deliver consistent performance in warehousing and shipping environments.


Millwood inspects, repairs and grades recycled pallets to meet industry standards, ensuring they perform reliably across contract packaging, cross-docking, and final-mile delivery. This balance of cost efficiency and sustainability makes recycled pallets a smart option for logistics providers serving diverse customers. By integrating recycled pallets into a broader sourcing program, 3PLs reduce spend, improve sustainability scores and maintain high service levels without sacrificing safety or compliance.

Both hardwood and softwood pallets are viable, and the right choice depends on load weight, handling requirements and cost targets.


Millwood engineers pallets to match each 3PL’s operational demands. Hardwood pallets provide strength and durability for heavy or high-risk shipments, while softwood pallets offer lighter, more cost-effective options for lower-weight loads. Choosing correctly prevents overspending on overbuilt pallets and avoids damage from underbuilt ones. Millwood helps logistics providers standardize pallet specifications across facilities, ensuring consistency, safety and efficiency in distribution and transportation programs.

Strategic sourcing streamlines procurement by consolidating vendors, standardizing specs and cutting redundant costs across multiple facilities.

Millwood applies strategic sourcing to unify pallet and packaging programs for 3PLs. By eliminating overlapping contracts and reducing supplier complexity, logistics providers gain cost control and improved accountability. Standardized packaging specs ensure compliance across customer industries, from food to industrial equipment. This unified approach strengthens resilience against market volatility and helps 3PLs deliver consistent service. With one trusted partner, 3PL providers can scale operations confidently while simplifying procurement and improving efficiency.



Yes, Millwood supplies ISPM-15 compliant pallets and custom crates for international shipping and export programs.

3PLs managing global freight require packaging that meets international standards to avoid customs delays and costly disruptions. Millwood delivers heat-treated pallets, pressed wood, and engineered crates that comply with export regulations. Our team tailors each solution to product requirements and transit conditions, protecting goods while streamlining border clearance. With export-ready packaging, logistics providers can expand their global reach confidently, maintaining compliance and ensuring reliable performance across diverse shipping lanes.

Smart packaging design prevents damage, reduces freight costs and ensures compatibility with automated systems.


Millwood’s Packaging Science Lab validates pallets, crates and unit load designs under real-world conditions. For 3PLs, this engineering ensures packaging solutions align with customer requirements while improving efficiency. Optimized designs minimize wasted materials, improve load stability and reduce total freight spend. By aligning packaging design with automation and handling demands, 3PLs avoid costly inefficiencies and product loss, delivering measurable savings and customer satisfaction.

They minimize risk by consolidating vendors, validating designs and ensuring compliance across all customer industries.


Millwood helps 3PLs build packaging programs that address risk from multiple angles. Our lab-tested designs reduce product loss, while vendor consolidation eliminates variability across facilities. ISPM-15 compliance supports international shipping and sustainability initiatives improve customer relationships. With a unified program, 3PLs can protect margins, reduce liability and enhance service quality, even in volatile market conditions.

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