Abstract: The apparatus of this invention comprises a tray destacking station, a part unloading station, and a tray stacking station arranged sequentially adjacent and connected by a pallet transport system and a tray transport system. This system is designed to move a pallet containing a stack of fully loaded trays into the destacking station, raise the dunnage and suspend the stack over the pallet. The pallet is then removed from the bottom of the stack. In a similar manner the stack is then raised and suspended over the bottom tray to allow it to be moved into the unloading station. After the parts are removed from the tray, the tray is moved into the stacking station where it is positioned underneath the stack of empty trays. This is accomplished by providing a lift at the destacking and stacking stations which raises and lowers the stack in operative association with racks that engage, suspend, and release the stack to allow the trays to be separated from the bottom of the stack.