Case Study: Şok Group

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Ahead of the game: how working with CHEP helps companies keep their market lead

Founded in 1995, Şok Group is a Turkish supermarket chain with 3,500 stores and 16 distribution centres across the country. Its parent company is Yıldız Holding, Turkey’s largest food production and retail conglomerate.

The Challenge

White pallet exchange is the established system in Turkey, but it presents problems due to variable pallet quality and lack of standardisation. Supermarket chains in particular need a more reliable solution to reduce delays, prevent product damage, and to avoid any health and safety issues.

The Answer

Şok had been using CHEP pallet pooling solutions for part of its operation, but in 2013 decided to increase its use of CHEP across its network by 30%. The efficiency, safety and cost benefits of the CHEP system are helping Şok retain its leadership position in the discount supermarket world.

The quality of CHEP pallets is excellent. They are safer to use in our warehouses and stores.

Oktay Yemen Okatan Şok Group

How CHEP solutions generate cost savings all round

Switching from the traditional white pallet exchange system to a CHEP pooled pallet solution means Şok can avoid the common issues and costs associated with owning and managing its own pallets. These challenges include buying new pallets to replace lost and broken ones, and headaches caused by variable pallet size and quality.

Şok Group Supply Chain Director Oktay Yemen Okatan says, “The CHEP solution provides us with logistics efficiencies that result in cost reductions and smoother operations, enabling us to offer the best prices to our valued customers. The quality of CHEP pallets is also excellent. They are safer to use in our warehouses and stores.”

Working as a team to create supply chain efficiencies

With more than 285 million pieces of pooled equipment globally, monitoring their movement is of fundamental importance to CHEP. In Turkey, as in all other countries in which CHEP operates, CHEP uses a dedicated asset management team and sophisticated technology to track pallets throughout the supply chain. Şok staff place equal value on CHEP pallets, using its own software to track those it uses, and encouraging its suppliers to do the same. “We all know that CHEP makes our lives easier, and we are doing everything in our hands to ensure a successful business relationship now and in the future. For us, a CHEP pallet is like chocolate or tomatoes, exactly like any of the other goods and products that we move every day,” says Okatan.

The move to pallet pooling: safer and more reliable

Working with CHEP to make the supply chain safer and more efficient benefits both Şok and CHEP. As CHEP VP General Manager, CEE Jochen Behr says, “We are increasing our level of collaboration with manufacturers, retailers and logistics service providers. Our pooled-pallet solution offers solid supply chain benefits for companies throughout Turkey, and more of them are recognising these benefits. We truly appreciate the trust that Şok Group places with us and we look forward to continuing our partnership.”

We are increasing our level of collaboration with manufacturers, retailers and logistics service providers. Our pooled-pallet solution offers solid supply chain benefits for companies throughout Turkey, and more of them are recognising these benefits.

Jochen Behr VP General Manager, CEE, CHEP

Five benefits of the CHEP solution

  1. Lower, more transparent costs: no outlay on replacing lost and broken pallets, and no expensive management time spent locating missing ones
  2. Better for Şok’s customers: because an efficient, lowercost supply chain means in-store savings for shoppers
  3. Dramatically reduced product damage, thanks to the consistently high quality of CHEP equipment
  4. Greater reliability: without the problem of lost or substandard pallets, deliveries run more smoothly
  5. Improved safety in warehouses and stores: thanks to CHEP’s quality assurance and standardised pallet sizes

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Case Study: Şok Group | CHEP Middle East