CHEP Solutions Portfolio Takes $13 Million Cost Out of Customer Supply Chains

Scene from the MODEX Show opening

Scene from the MODEX Show opening

 

CHEP continues to make gains with its Solutions Portfolio offerings, as well as with its half pallet, according to Todd Hoff, Vice President Marketing & Innovation at CHEP North America, commenting from the MODEX 2016 trade show in Atlanta.

CHEP launched its Solutions Portfolio in June 2015, describing it as “a series of high value-add services to help companies in the consumer goods manufacturing, fresh food, grocery and retail industries optimize their supply chains and support the development of corporate social responsibility programs.”

Nine months later, Solutions Portfolio initiatives have proven to be a success, having saved CHEP clients $13 million in supply chain costs since the launch, while eliminating over five million empty miles and 16 million lbs of CO2 emissions. At the same time, CHEP customers have generated more than $5 million in incremental revenue for their businesses resulting from transportation optimization opportunities.

Aside from transportation improvements, the other most popular offering in the Solutions Portfolio is in the area of packaging performance testing, unit load optimization, and product damage reduction.  CHEP commercialized its testing facilities and now offers this service to clients. Participants can anticipate benefits such as packaging optimization, product damage reduction, and other cost saving benefits.

To date, the Solutions Portfolio has undertaken 31 different projects, including 18 from repeat customers. “Our customers continue to ask us back to undertake new projects with them,” Hoff states. ” We have had a lot of interest from customers around these solutions to reduce costs in their supply chains.”

The CHEP half pallet continues to enjoy success. The 40×24-inch half pallet was introduced in October 2013, as reported first in the Reusable Packaging News. Over 80 percent of U.S. grocery retailers now accept the CHEP half pallet, and it continues to gain the interest of major CPG (consumer packaged goods) manufacturers. It is becoming increasingly popular for promotions, such as end-aisle or floor displays.

“It is growing as adoption continues,” Hoff says. The half pallet is becoming popular for heavier products such as canned goods, bottled products, in addition to a variety of promotional products. He notes that the robust half pallet makes it attractive versus other non-standardized and often lighter service fractional-sized platforms being used.

Aside from promotion, the CHEP half pallet is now being piloted for in-aisle replenishment. While still uncommon in North America, in-aisle replenishment (placing the pallet in a floor position below aisle shelving) is more common in Europe and represents an attractive opportunity for one-touch merchandising efficiency.

 

The CHEP half pallet as shown at its release in October 2013.

The CHEP half pallet as shown at the time of its introduction in October 2013.

In response to a question from Reusable Packaging News, Hoff confirms that CHEP is piloting plastic pallets with some customers, acknowledging that CHEP has utilized plastic pallets for several years in various applications internationally.

“We have done and continue to do pilots with customers in North America to validate the right platform, application, and business model to be successful with our customers” he confirms.

Visit CHEP at MODEX 2016 Booth #915.