Paper short abstract

This paper analyzes pallet standardization in Japan and shows how incompatible material standards generate fragmentation in logistics systems. It argues that the lack of unified pallet sizes constrains intermodal transport and increases coordination costs across supply chains.

Paper long abstract

This paper examines pallet standardization as a material dimension of institutional coordination in Japanese logistics systems. Unlike regions where a dominant pallet size has been widely adopted, Japan continues to operate with multiple competing standards, most prominently the 1100×1100 and 1200×1000 formats. These standards emerged from distinct historical trajectories of domestic retail distribution, containerization, and sector-specific optimization. While each standard is rational within its own context, their coexistence imposes significant coordination costs on contemporary supply chains.

The analysis traces how incompatible pallet sizes affect warehouse layout, racking systems, forklift design, vehicle loading efficiency, and cross-border cargo flows. Firms engaged in intermodal and international logistics must maintain parallel pallet and container systems, increasing capital requirements and operational complexity. Load efficiency decreases due to mismatched dimensions, and additional handling generates both economic costs and occupational risks. Small and medium-sized enterprises are disproportionately affected because they lack the resources to invest in flexible equipment or pallet-pooling arrangements.

The paper argues that material standards should be understood as socio-technical institutions. They stabilize expectations, coordinate behavior, and structure investment, yet they can also entrench fragmentation when multiple standards persist without effective mechanisms for alignment. Policy initiatives promoting pallet standardization and pooling systems have made gradual progress, but change remains slow due to divided jurisdiction, conflicting industry interests, and the sunk costs embedded in existing equipment and facilities.

By drawing on examples from manufacturing and retail distribution, the paper demonstrates how seemingly mundane artifacts shape broader debates about efficiency, intermodality, and environmental performance. Standardization is not merely a technical engineering issue; it is embedded in organizational routines, regulatory frameworks, and power relations along the supply chain. Conceptualizing pallet incompatibility as a coordination problem provides new insight into how material infrastructures influence national logistics performance.