- CHEP Brazil has recently started installing tracking technology on some pallets.
- Initiative prevents the loss of pallets and generates more security, transparency, and cost savings for the Brazilian logistics sector.
São Paulo, May 2023 – CHEP Brazil has announced the launch of a pallet tracking system in its pooling network. The pilot project aims to track the location and movements of cargo carriers and transported products using IoT (intelligence of things) devices to minimize the loss of pallets and reduce unnecessary costs.
“Digitalization has proven to be an ally against lost pallets,” explained André Cardoso, country manager at CHEP Brazil. “For example, at CHEP, we have recently started installing tracking devices on some of our pallets. We add capabilities to existing asset management activities and introduce new initiatives supported by data analytics and digital insights to increase pallet recoveries.”
With the new tracking, CHEP aims to increase supply chain efficiency, security, transparency, and control. Tracking devices installed on pallets provide information about the location and condition of CHEP’s load carriers, making it easier to identify and manage goods. In addition, increased transparency guarantees the complete mapping of the chain and the traceability of all goods, preventing pallets from being lost and no longer used in the pooling system or even stolen.
“Cargo theft in general and pallet theft in particular has always been a worrying risk for large logistics companies in recent years”, emphasized the CHEP country manager. “Not addressing or underestimating these illegal practices could affect the entire supply chain and, ultimately, the final consumer. CHEP has been working around the clock to minimize disruptions in the supply chain and manage the effective flow of our pallets and containers. This includes working with retailers to ensure empty pallets are returned to CHEP promptly to be sorted, repaired and reissued to manufacturers, and investing in additional vehicles dedicated to the recovery of small pallets.”
CHEP Brazil: for the system to be effective, pallets must be returned
CHEP’s pallet pooling system is based on reusing and sharing blue pallets across the supply chain, allowing customers to pay for the time they use the pallets rather than purchasing them outright. However, for the system to be cost-effective, the pallets must be returned and remain in circulation.
“We have implemented processes to refurbish pallets that would otherwise be scrapped; for example, at the CHEP Brasil plant in Louveira (SP) we have a fully automated system operated by artificial intelligence to identify and repair damage to pallets,” said Cardoso. “At the same time we invest in new pallet purchases around the world to support our customers. In addition, we implemented allocation protocols in the main markets of the USA, Latin America, Europe and Australia, prioritizing the service to existing customers in these regions.
“Talking about the subject and collaborating with other actors is essential to address it. Retailers, wholesalers, producers, manufacturers, truck drivers, etc., all participants in the supply chain must play by the rules of the game. We are working to disseminate information and ensuring that they all understand the meaning of pallet pooling and the consequences of inappropriate use of our legally owned pallets.”
With prices for raw materials, fuel, and pallet wood rising sharply in recent months, pressure on productivity and prices for companies in the supply chain has been increasing. CHEP recognizes the importance of pallet pooling as a reliable and sustainable supply chain solution and is committed to providing its customers with the highest operational efficiency possible.
“CHEP expects the pallet tracking system to be a success, further increasing the efficiency of its pallet pooling services and reinforcing its commitment to the circular economy,” Cardoso concluded.