A cavity is cut into a wooden structure (e.g., stringer, block, or deckboard) of a wood pallet such that an electronic tracking device can be embedded into the wooden structure for tracking the pallet. The cavity is shaped to allow for a sufficient thickness of remaining wood material surrounding the cavity to remain strong and also to allow for sufficient thinness so wireless signals can be reliably transmitted to/from electronics within the cavity. The remaining space within the cavity around the embedded tracking device is filled with a potting material to secure and protect the tracking device within the cavity. The tracking device monitors the location of the pallet and provides location data to a back-end system over a communication channel either directly or via a local hub. The back-end system performs analytics on the location data.