Case Study: Wiring Harness Manufacturer

How returnable container rental program reduced cost, premium freight and re-packing

A global producer of wiring systems and electronics ships wiring components for cars and trucks to vehicle manufacturers throughout the U.S., Canada and Mexico.

How returnable container rental program reduced cost, premium freight and re-packing

Challenges

Previously, the company delivered product in some of the more expensive corrugate cases available on the market. Despite this high price point, the quality and integrity of these corrugate containers were not ideal. A litany of pain points are associated with shipping wiring components in this manner, including:

  • Punctured cases and damaged product
  • High disposal costs and waste
  • The need to comply with OEM-implemented "greening" programs

With these pain points in mind, switching to reusable containers seemed like an clear decision. However, there are also numerous costs and challenges associated with owning a fleet of reusables. The first and largest challenge is the capital expense of actually purchasing the assets, capital that could otherwise be invested in core competencies. Other reusable challenges include:

  • Freight costs for long-haul return trips
  • Premium freight costs during container shortages
  • Asset loss, damage and theft
  • Inability to support bank builds, WIP and production peaks

Bottom Line

The supplier needed a solution that would give them the quality benefits of returnable containers, but without the massive capital expenditure and added responsibility of managing and tracking their own reusable assets. 

Solution

The supplier contacted CHEP to replace corrugate containers in 11 plants across North America with an outsourced reusable container program. Our all-inclusive fee includes reusable container rental, shipping to the supplier and pickup from the OEM, container inspection/repair after each cycle, 24/7 supply chain tracking, dedicated customer service representative, standard reporting and KPIs for suppliers and plants.

Key Benefits of the CHEP Program

  • Reduce overall packaging cost
  • Eliminate non-core CAPEX
  • Reduce safety stock and premium freight
  • Worry-free outsourced container management solution
  • Scalability - easily adapt to customer volumes 
  • Reduce part damage
  • Track loss and damage through improved supply chain data and visibility
  • Optimize transport routes and synergies through pool model

Summary

For over 14 years, CHEP has provided this North American supplier with a reusable container rental solution which empowers the company to achieve greater efficiency, improve profits and reduce capital expenditures. The measurable impact of utilizing the CHEP container rental has led the supplier to cost savings, mainly through the reduction of capital expenditures, premium freight and re-packing. With one less worry about having containers in the right place at the right time, the supplier can focus on their core business.

Find CHEP platforms

Please enter your details below

  • Your entry is not of the correct length
  • Your entry should not contain any URLS
  • This field is required
  • Your entry is not of the correct length
  • Your entry should not contain any URLS
  • This field is required
  • Your entry is not of the correct length
  • Your entry should not contain any URLS
  • This field is required
  • Your entry is not of the correct length
  • Your entry should not contain any URLS
  • This field is required
If your download doesn't start shortly please click here

Select language

Canada
Done

Not your country or language?

Change country

Case Study: Wiring Harness Manufacturer | CHEP Canada