Pallet systems use actual pallets or other flat structures to securely store goods. Types of pallet systems include: selective pallet racking, drive-in or drive-through, pallet flow, and push-back pallet racking systems. All systems offer a means of storing large quantities of materials and goods in less space. Most require the use of a forklift or pallet jack to place palletized materials on storage racks. Pallet systems are widely used in warehouses, retail facilities, manufacturing plants and distribution centers.

Selective pallet racking provides pallet storage one unit deep in up to 50 standard frames for easy access at all times. The most common pallet system, selective racking systems are available in two configurations. The roll form, or clip-in style, contains teardrop-shaped clips that can be easily moved for shelf height adjustment, which is advantageous in cases where the size of the load varies. Structural rack systems feature horizontal load beams attached directly to the uprights for greater load-bearing capacity. Very narrow aisle (VNA) is a selective system designed with a tighter arrangement to further maximize storage space.

Drive-in or drive-through systems provide pallet storage in stacked rows wide enough for a forklift. If a stacked row has an entry point at only one end, it is a drive-in system. An entry point at both ends of the stacked rows makes it a drive-through system.

Pallet flow systems make use of depth to increase storage capacity. These high-density pallet systems use a slightly slanted rail with rollers, enabling pallets to easily glide along the tilted rail. Pallet flow systems entail an intricate transport system to set the speed of moving pallets.

Push-back pallet systems also make use of depth. Each stacked row or bay can be up to six pallets deep. Each pallet is stored on carts with wheels that fit on a specially designed rail that uses gravity to transport heavy pallets.

The inventory storage method varies with the type of pallet system in use. In a first-in, first-out (FIFO) system, pallets are filled from one end of the storage rack and the goods shoved to the opposite end. Those goods are then lead the row on the other side and will be the first ones removed from the opposite end. This inventory method is helpful when goods have expiration dates or shelf life becomes an issue. Drive-through and pallet flow systems are often FIFO systems.

In a last-in, first-out (LIFO) system, pallets are loaded and unloaded from the same side. Push-back pallet and drive-in systems are LIFO systems. These are efficient in cases where expiration dates are not a concern.