CHEP Inbound Solutions: pooling is exemplified by a new total cost of ownership tool and a corresponding life cycle analysis, showcasing its economic advantages and environmental benefits.
Cologne, Germany, May 23, 2023 – CHEP, a global leader in supply chain solutions, is introducing a new Total Cost of Ownership (TCO) tool designed specifically for the initial stages of the supply chain. This tool simplifies and expedites the calculation of cost savings that can be achieved by FMCG (Fast Moving Consumer Goods) companies when utilizing pooling services from CHEP to transport goods into production environments.
By utilizing information specific to a company’s supply chain operations, the TCO tool determines the savings potential of CHEP’s reusable plastic pallets and Intermediate Bulk Containers (IBCs) compared to previous solutions. It highlights the cost reductions facilitated by CHEP pooling, encompassing various expenses such as transportation, cleaning, and product loss during IBC emptying, in contrast to existing methods.
Moreover, CHEP offers a Life Cycle Analysis (LCA) as an independent measurement tool to assess customers’ environmental footprint. The LCA evaluates factors like wood consumption (for wooden pallets), waste generation, and CO2 emissions associated with using CHEP’s reusable pallets when compared to single-use alternatives. The analysis follows the comprehensive and standardized methodologies outlined in ISO standards 14040 and 14044.
Recently, the LCA was expanded to encompass the environmental impact of liquid IBCs. Unlike the TCO tool, the LCA examines the complete life cycle of CHEP’s solution, considering resource usage during manufacturing, the utilization phase, and the end of the product’s life cycle. By utilizing the TCO calculation and LCA analysis, manufacturers receive well-founded justifications for adopting CHEP’s reusable solutions in their inbound logistics based on cost and environmental considerations.
Sustainability as a business advantage
Sustainability is essential for the food industry today and firmly embedded in the corporate strategy of many companies across Europe. The majority of manufacturers expect every department to contribute. With its reusable solutions based on the Share & Reuse principle, CHEP supports production managers in achieving their sustainability goals. The environmental effects can now be calculated before switching to the pooling system.
“Our new TCO tool, as well as the LCA analysis, provide a compelling case for moving to our inbound pooling services, which are based on the inherently sustainable model of sharing and reusing pallets and containers,” sai Nicholas Gibbons, General Manager of CHEP Inbound Solutions Europe. “With their sustainability efforts, companies today create significant business value that has a positive effect on their profitability. Our solutions not only help but also effectively save costs and increase efficiency in logistics.”
CHEP Inbound Solutions: comprehensive range, especially for the first mile
For the hygienic and safe transport of packaging materials and ingredients and raw materials directly to clean production areas, CHEP offers a wide range of reusable solutions. For dry or solid ingredients, manufacturers can use dry IBCs in addition to the plastic pallet. Liquid IBCs with different liners are available for transporting liquids. All solutions meet strict food safety requirements. The risk of cross-contamination and the risk of product damage is minimized during transport.
Due to their consistent quality and standardized dimensions, the plastic pallets can also be used in automated environments. CHEP offers much more than just renting out container and pallet solutions: the logistician takes care of cleaning, inspecting, repairing, delivering and picking up the containers and load carriers, supplemented by various supply chain services.
Customers can concentrate fully on their core business and at the same time improve their ecological balance in the supply chain. “Our pooling model offers everything from a single source and is consistently transparent. Hidden costs such as returning pallets or removing product residues in IBCs, which drive up TCO, are completely eliminated with our model,” added Gibbons. “In close cooperation with customers and partners, CHEP is always expanding its solutions and adapting them to the latest requirements. The logistics solutions for incoming goods are pooled from the service center in Gernrode, Saxony-Anhalt. Customers in western Germany receive the same comprehensive services from the Zevenaar branch in the Netherlands.”
For more information on CHEP’s first mile solutions, visit:
Source: CHEP Germany