Case Study: FMCG | Spain | Supermarket Retailer

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Reducing inefficiencies and improving product safety for inbound goods for a national retailer

The Business

As a mid-sized retailer in Spain, this popular supermarket has a strong presence in the north of the country and a turnover of 600M per annum. The company currently employs over 6,000 people across its growing network of more than 170 supermarkets.

The Challenge

The main challenges this retailer faced were logistics inefficiencies, high product contamination, handling costs and administration concerns due to non-standardised and poor quality inbound plastic pallets (40,000 per annum) received from existing meat suppliers. Combined with increasing pressure from food safety regulation adherence, this retailer was seeking a standardised and sustainable solution for the future.

The Answer

Following an analysis of the retailers supply chain needs, CHEP generated a pooled plastic pallet solution that removed the need to repalletize from poor quality pallets received, alongside the handling and admin inefficiencies.

“CHEP delivered and implemented an impressive cost-efficient solution.”

Logistics Director

Five benefits of the CHEP Solution

  

  • 1. More transparent costs

    No outlay on replacing broken pallets – just quality pallets, as and when needed.

  • 2. Less hassle, more effectiveness

    CHEP takes care of pallet inspection, repair and recycling.

  • 3. Improved business relationships

    High-quality pallets mean more reliable deliveries and less product damage.

  • 4. Meeting regulatory demands

    CHEP’s quality-assured pallets enable the retailer to meet its strict hygiene demands.

  • 5. Improved handling

    No more repalletization required.

Understanding the requirements

The pallet quality issue that was creating so many problems was being caused by the inbound pallets received from approximately 30 domestic fresh meat suppliers. These poor quality, non-standardised and unreliable pallets had forced the retailer to purchase its own pool of plastic pallets to repalletize its network and ensure that pallets were consistent and could be racked on-site.

However, the retailer’s own pool was not of the highest quality and this resulted in handling inefficiencies, product damage, contamination risk, and the ongoing administration issues that still needed to be resolved. Combined with increasing food safety and hygiene standards, the current solution was identified by the retailer as non-sustainable, and so CHEP was approached to find a new solution.

Meat Industry

CHEP’s First Mile Solutions in action

The Logistics Director noted; “CHEP helped us to solve logistics inefficiencies in the inbound process for meat products, which involved additional equipment, handling and administration costs and enabled us to achieve high quality assurance standards related to food (and specifically fresh meat). CHEP delivered an impressive cost-efficient solution and managed the full process of implementation throughout our suppliers.”

 

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A close partnership for quick results

Through working closely with this supermarket retailer, CHEP were able to deliver a quick response and implementation plan.

Following the initial contact in May 2017, the proposed solution was agreed in July 2017, with the first suppliers contacted and agreements signed in September 2017. In October 2017, CHEP began implementing their pooled plastic pallet solution across the retailer’s supply chain network.

An industry challenge

More and more meat retailers are seeking to partner with plastic pallet pooling manufacturers in order to streamline their supply chain operations and make cost savings. With CHEP’s pooled plastic pallet solution, retailers can achieve pallet standardisation thus improving the quality, consistency and reliability of pallets throughout the supply chain network.

Let’s talk. Our dedicated Customer Service team will be glad to provide further information about CHEP’s managed pooling services.

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Case Study: FMCG | Spain | Supermarket Retailer | CHEP