CHEP Provides Reusable Container Management Program to AGCO International

CHEP has won a new industrial packaging management contract that involves the provision of CHEP standard reusable packaging as well as the management of proprietary reusable packaging owned by the customer. AGCO International GmbH has signed a two year contract with CHEP for the provision of a pooled container management program to serve the global manufacturer of tractors and other agricultural equipment. The offering includes the delivery of packaging and services solutions for the flows of inbound components from AGCO suppliers in 16 European countries that ship to five AGCO manufacturing facilities in Germany, Finland, and France. This operation will be supported by 12 CHEP service centres across Europe. CHEP will provide a managed pool of standard reusable containers in addition to using its technology to manage AGCO’s own pool of specialised containers. Prior to the CHEP arrangement, AGCO employed a combination of reusable containers from its own pool, cardboard cartons and other one-way packaging, as a result experiencing logistics inefficiencies and unnecessary costs.

“The delivery of supply chain excellence through cost reduction and continuous improvement is critical to our business strategy,” stated AGCO Vice President of Purchasing and Materials, EAME. “By partnering with a professional and experienced packaging and supply chain solutions provider such as CHEP, we believe our success in these areas is greatly enhanced. This allows AGCO to provide an even better quality of service to our customers.”

“Our decision to work with CHEP will not only allow our business to realise cost savings, but also improve our overall efficiencies as we reduce the time and resources we allocate to packaging management, handling and transportation,” commented  Bϋlent Ileri, Director of Transportation, EAME. “Efficiencies help us reduce our overall environmental impact and improve our sustainability performance. Combining this with a reduced need for capital investment and greater flexibility during production fluctuations made it an easy decision to partner with CHEP.”

“We are delighted to be helping AGCO achieve its goal of supply chain excellence,” said Marcelo Di Benedetto, CHEP EMEA Vice President of Automotive & Industrial Solutions. “We are confident AGCO’s decision, as a leading manufacturer of agricultural machinery, will prompt others within the industry to review their packaging processes and consider opting for CHEP to gain similar significant cost savings, an improved sustainability footprint and greater supply-chain efficiency.”