The Opportunity
Reduce the cost of empty miles in the supply chain and their impact on the environment.
The Solution
Utilize CHEP’s extensive network and resources as North America’s largest back haul shipper.
Transportation is a critical component of the consumer goods supply chain. Virtually every manufacturer, wholesaler and retailer is searching for collaborative freight opportunities to reduce the costs of transportation and its impact on the environment.
While eliminating empty miles is a top priority, it is often one of the most difficult to achieve. Pick up and arrival times need to align, as do point of origination and destination. Type of goods needs to match trailer design, and partners must be identified and coordinated. Financial modeling and negotiation is needed, not to mention carrier coordination and approval. With so many pieces of the puzzle to put in place, it’s no wonder so many empty miles exist.
CHEP understands this better than anyone as North America’s largest back haul shipping partner.
What we have found working closely with our customers is that our business model and network scale make us exceptionally good transportation partners. Our platforms that need to be transported are at the precise retail locations where our customers’ trailers are empty. We have more than 45,000 unique lanes, 20,000 customer locations and 400 CHEP facilities across North America. Due to our own substantial needs and extensive network, we’ve developed the expertise, tools and processes to take the lead for our customers. We help them generate revenue from their fleets, reduce the amount of trucks on the road, lower the cost of transportation, improve network efficiencies and reduce their carbon footprint.
Senior Director IB Logistics, Walmart Stores, IncCHEP helped us save 865,000 empty miles and reduce 2.7 million pounds of CO2.
Transporting our pallets is often a perfect solution for customers. CHEP pallets are located at the retailer yards they deliver to and at the supplier they pick up from. Our pallets are less time sensitive, so they are more likely to accommodate a customer’s delivery schedule. Because of our extensive network, customers can find more pallet delivery and return locations in close proximity to each other.
The process we use to identify and realize transportation opportunities is straight forward and efficient. We compare the customer’s lanes and loads with our lanes and facilities and create closed loops by combining matching lanes. Then, we focus on those opportunities with the greatest shared value. We have helped many customers lower transport rates, increase carrier capacity, match inbound loads with outbound loads and even improve yard efficiencies by enabling the reuse of trailers once they’re unloaded.
We start by working with customers’ logistics teams to identify potential collaborative lanes. Then, we define the carrier base, constraints, priorities and key performance indicators, before agreeing on rates per lane. The operational plan is then launched, starting with pilot tests, and then the full plan is executed. Upon implementation, we measure and report performance, setting multi-year targets to help customers grow the program.
Together, we’re eliminating waste in customer supply chains and doing good things for the world. Last year, we partnered with customers in North America to eliminate approximately 3.5 million empty miles and reduce carbon emissions by more than 13 million pounds.
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