Most distribution and many manufacturing operations must deal with empty pallets – sometimes it’s a lot of pallets. They take space you could use for something else. They clutter your receiving areas. Sometimes they’re splintery, with nails protruding from the sides ready to bite a passerby. People re-use their pallets of course, holding onto them for a period of time until you can ship them back out. But while they’re in your facility, they can at space, potentially injure people, and generally cause trouble.