A material handler was picking components in the receiving storage area between rows C & D on the south end of the storage area. As the material handler was scanning and loading components onto a cart, a forklift operator was loading components onto the top level rack in row E, adjacent to where the material handler was picking parts. While loading the parts onto the rack, the pallet that was in row D in the same location began to shift and eventually fell from the top level onto the material handler causing fractures to the employee's neck and spine.