20% fewer production stoppages for Farm Dairy

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High-quality pallets and good coordination contribute to a more efficient supply chain.

In December 2017, Farm Dairy examined its logistical processes and optimised its pallet flows. Instead of using exchange pallets and two different kinds of pool pallets, the dairy firm opted to use CHEP’s pooling system exclusively. This switchover means less work and administration for the company and 20% fewer production stoppages.

How the switch to CHEP took place

Milk in production room
Dairy company Farm Dairy produces thousands of litres of milk, yogurt and custard for large retail groups.

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.

Since our switch to CHEP pallets, out production process is far more stable than it was a year ago. We have 20% fewer production stoppages.

Peter van de Ven Supply Chain Planner, Farm Dairy

Looking for a sustainable partnership

Outsourced administration and management
It is not just the quality that helps business run more smoothly, as Meindert Van Lon, Manager Operations at Farm dairy explains: “CHEP has taken a lot of the work off our hands. We used to have to check and sort the pallets ourselves, but now CHEP does it for us. In addition, it coordinates the transport with St vd Brink and deals with the administration. That saves us a lot of time and resources.”

A partnership for the future
Moreover, CHEP offers solutions for every phase in the supply chain and continues to innovate in order to be able to respond to future challenges. Meindert van Lon is also looking for ways to extend the partnership: “We know CHEP can do more for us, for example at the point of sale. So we are looking into whether we can extend our partnership in the future.”

Sustainable transport by St vd Brink

The transport firm St vd Brink handles the distribution of Farm Dairy products. Six days a week, the transporter takes the fresh dairy products to retail distribution centres.

St vd Brink collects new, quality-controlled pallets from CHEP’s service centre and transports them to Farm Dairy’s factory. There the pallets are exchanged for full pallets destined for retailers. As van de Ven tells us: “This way of working ensures that the lorries are not needlessly driving around empty.”

St vd Brink also makes tireless efforts to cut transport miles and the resulting CO2 emissions. For example, the transporter has developed an energy and CO2 reduction plan together with Farm Dairy, for which it won a Lean and Green Award.

Want to optimize your production processes as well?
St vd brink truck
Transporter ST vd Brink has developed an energy and CO2 reduction plan together with Farm Dairy, for which it won a Lean and Green Award.

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20% fewer production stoppages for Farm Dairy | CHEP