Polska Woda is Poland’s leading domestic producer of high-quality spring water. Each year, it bottles over 250 million litres, drawn from the hills near Łódz in the centre of the country, for its flagship brand Primavera and various private-label products.
Responding effectively to the seasonal demand for bottled water, especially between May and August, is vital to Polska Woda’s business. Until recently, white-wood pallets were putting this at risk, with business partners repeatedly highlighting lost and damaged pallets as problematic.
In early 2014, Polska Woda decided to start using CHEP pooled pallets. This immediately had a positive effect, allowing the company to meet delivery demands punctually and reliably, and improving the safety of its supply chain.
An end to the problems of white-wood pallets
With no fleet of its own, Polska Woda relies on approved transporters to reach its 500 distribution points. Previously, this made it difficult to recover pallets in good condition: it had to dedicate one of its employes to the management of its white-wood pallet inventory, and it even had to use bonus packages to persuade its supply chain partners to return equipment.
With CHEP, Polska Woda uses the online Portfolio+Plus system to keep track of all its pallets. It also collaborates with CHEP to minimise transport costs: reducing empty truck miles by using its transporters to recover pallets from distributors.
The importance of meeting seasonal demand
Although bottled water has a shelf life of a year while sealed, retailers tend not to stock it in large quantities. Over time, it can be affected by sunlight, and its taste – though not its safety – can be altered by substances that migrate through the PET bottles. For Polska Woda, it is therefore very important to adjust production and distribution to seasonal and market demands – both for its flagship brand, Primavera, and for the private labels it produces for retail chains: Oasis, Saquaro, My Way, Thumb, Gardinia, Yes, Tesco Value and Aro.
“In the bottled water industry, the response time between order and delivery is 24 to 48 hours,” says Leszek Rodak, Sales and Marketing Director at Polska Woda. “Working with CHEP definitely simplified the logistics processes within our supply chain, which gave us time savings and, consequently, cost optimisation.”
Financial savings and sustainability gains
CHEP has calculated that, in the first year it used the Transport Collaboration service, Polska Woda was able to reduce its transport needs by 12,742km and its C02 emissions by 13 tonnes. “Our network of service centres in Poland allows us to become key partners in our business partners’ supply chains,” says Kinga Di Salvo, CHEP’s Country General Manager for Poland and the Baltics. “They are assured that, in addition to reducing the cost of their operations, they can reduce their negative impact on the environment.”