Need for standardised process
Until the end of 2017, Farm Dairy products were transported on three different kinds of pallets: white wood exchange pallets, CHEP pallets and pallets from another pooler. As each kind of pallet required different handling, Farm Dairy was working with three pallet streams in its production environment. “The situation wasn’t ideal”, recalls Peter van de Ven, Supply Chain Planner at Farm Dairy. “We had had enough of the pallet exchanges that slowed down the production process. We needed a standardised process with one uniform operation and one type of pallet.”
Choice based on pallet quality
Farm Dairy ultimately opted for CHEP’s ‘share and reuse’ pooling model. After use, every pallet undergoes stringent quality control at a service centre. That turned out to be the deciding factor. Van de Ven explains: “CHEP constantly checks the pallets in circulation for loose nails or planks. Other pallets did have those problems from time to time, which would lead to disruption and production shutdown. Now the production process is far more stable than it was a year ago.”
Since the switch to CHEP pallets, Farm Dairy has had 20% fewer production stoppages.