A CHEP customer and leading Tier1 supplier recently turned to CHEP for assistance with a particular challenge – they wanted to partner with CHEP in a country where it did not operate.
Seeing that this particular customer has been utilising CHEP’s packaging platforms in Europe since 2012, they asked CHEP to supply containers for their use in Morocco, when they expanded into that country. A request CHEP felt they could not grant, as the company has no service centres there.
CHEP operates a circular business model, specializing in the share and reuse of unit load equipment, including pallets, crates and containers (including unique inserts). Without the facility for a customer to return its rented equipment to a CHEP service centre for repair and redistribution, their model does not function. However, in their quest to provide a long-term customer with a solution, the companies jointly came up with an innovative transport collaboration solution that allowed both to benefit.
The customer trucks, transporting their raw materials from Europe to Morocco, were often just 70% full – making it ineffective and expensive for them. By assisting the customer to eliminate their empty (or half-full) legs, CHEP was able to now share the customer’s transport to get their platforms from Spain to Morocco. There the CHEP containers would be loaded and returned to Europe.
The transport collaboration, which was achieved and implemented, showed real benefits and savings in terms of trip volumes and waste reduction, as well as cost savings on transport services for both parties. In the end, CHEP was able to provide its longstanding client with reusable packaging in a country CHEP had not operated in, at a competitive price.