CHEP Manages Transport Orchestration in Spain To Optimise Customer’s Logistics Networks
CHEP, the supply-chain solutions company, recently announced that customer collaboration in Spain in a programme called Transport Orchestration is producing substantial benefits, including cost savings, trucks eliminated from roads, fewer empty kilometers and reduced CO2 emissions. The programme seeks opportunities to share transport means among CHEP customers generating logistic efficiencies for all parties.
Transport Orchestration is part of CHEP Europe’s Supply Chain Collaboration Programme, a strategic priority that helps customers share transport both with other customers and with CHEP, while helping customers obtain improved transport services.
HEINEKEN, Procter & Gamble (P&G), CAPSA (Corporación Alimentaria Peñasanta SA), Gallina Blanca (GBfoods), Damm Group, Mahou San Miguel, ICT (Industrie Cartarie Tronchetti) and PepsiCo are some of CHEP's clients taking part in the Transport Orchestration programme in Spain.
Michael Gierloff, Director, Carrier Management & Transport Collaboration for CHEP Europe, said: “Transport Orchestration is changing the market’s perception of CHEP’s added value to the Supply Chain. Our business is now seen not only as a pallet pooler but as a true supply chain and logistics solutions partner. Our Transport Orchestration projects have helped a group of 40 CHEP customers save a combined €443,000 a year in transport costs and reduced their CO2 emissions by 650 tons only in Spain.
CHEP Europe embarked on a collaborative logistics programme several years ago with the aim of creating efficiencies in a fragmented transportation market. According to the European Commission, transport efficiency across Europe is poor and is getting worse. Road transport is also an environmental issue, since 25% of CO2 emissions come from heavy trucks on European roads, another study has shown.
Thanks to CHEP’s non-competitive relationship with customers, retailers and LSP partners, as well as its long history of customer collaboration and supply chain expertise across Europe, the company is in an ideal position to take on the role of trustee to orchestrate as a neutral partner broad-based transport collaboration.
CHEP maintains a large dynamic database of 225k transport lanes and 13.5 million shipments from declarations, plus a unique visibility of supply chain operations across Europe from picking up and returning 110 million pallets from 17,000 customers across 500,000 pick-up points – 5,000 trucks on the road each day. Plus, the company has active partnerships with more than 800 LSP partners, one of the most important LSP networks in Europe.
In addition, CHEP has developed a powerful technology tool which uses advanced algorithms to facilitate transport sharing and optimise transport – the CHEP Matching Tool. This tool uses all available data on customers’ transport flows – guaranteeing confidentiality - along with CHEP’s transport flows to produce customised solutions that optimise flows and truck loads among participating partners. The result is reduced empty kilometers for reduced costs and improved environmental efficiencies.
The customer collaboration programme continues to deliver significant benefits, producing win-win scenarios for all parties involved in the CHEP’s Supply Chain. CHEP continues connecting more partners with the Matching Tool and fully escalate the proven benefits of transport partnerships across Europe. The company’s collaboration programme is successfully tackling a growing sustainability issue in Europe – the increasing environmental cost of freight transport inefficiency.
CHEP is a global provider of supply chain solutions serving the consumer goods, fresh food, beverage, manufacturing and retail sectors in more than 60 countries. CHEP offers a wide range of logistics and operational platforms and support services that are designed to increase performance and lower risk while improving environmental sustainability. CHEP’s 12,500 employees and approximately 300 million reusable platforms (pallets and containers) deliver comprehensive coverage and exceptional value, supporting more than 500,000 customer touch-points for global brands such as Procter & Gamble, Sysco, and Nestlé. CHEP is part of the Brambles Group, the operator of a portfolio that includes IFCO, the leading provider of Reusable Plastic Containers (RPCs) to the fresh food supply chain globally, as well as specialist container solutions providers to the automotive, aerospace and oil and gas sectors.