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.
Oktay Yemen Okatan Şok GroupThe quality of CHEP pallets is excellent. They are safer to use in our warehouses and stores.
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.”
Jochen Behr VP General Manager, CEE, CHEPWe 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.
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