Coca-Cola Enterprises, Inc. (CCE) is the largest producer and distributor of non-alcoholic drinks in western Europe. As part of this organisation, Coca-Cola Enterprises Belgium distributes 1.2 million pallets of drinks to 11,000 delivery points every year.
CCE has been working with CHEP for over 30 years, and during their joint business project meetings began looking at ways to make CCE’s supply chain leaner and more efficient. CHEP suggested using its transport collaboration programme.
In February 2013, Coca-Cola Enterprises Belgium, along with the Belgian supermarket chain Colruyt and haulier Vervoer Van Dievel, began a transport collaboration project devised by CHEP. The aim was to reduce the number of empty trucks these three companies were putting on the road.
Saving money with a closed-loop system
CHEP examined the three companies’ delivery routes to work out where they overlapped, and designed a closed-loop circuit from the CHEP service centre in Bornem, Belgium. This allowed CCE to make savings on transport costs because Van Dievel takes the reduction in empty miles into its cost calculations, allowing it to offer CCE a more competitive price.
Jan De Wael, Sales Director at Van Dievel, confirms: “As a preferred Coca-Cola haulier, we deliver to Colruyt daily. The new system means fewer empty kilometres, so we can pass savings on to our customers. Pallet pooling is much cheaper for hauliers because it reduces a lot of the red tape.”
Practical and environmental advantages
Transport collaboration has other significant and useful advantages: pallet pooling and driving a closed loop is not simply a money-saving exercise. Firstly, loading and unloading have become much more streamlined because there are fewer trucks to handle at CCE’s entrances and exits.
And secondly, the companies involved in the collaboration – all of which are serious about sustainability – saw a substantial reduction in CO emissions of 30% per year. Each year the trucks involved drive 16,334 fewer kilometres than before the collaboration started, with far-reaching benefits for both the supply chain and the environment.
Cutting pallet administration and management
CHEP’s involvement with CCE also means reduced administration – CCE doesn’t need to manage pallet supply, repair or stock levels; quality pallets are always delivered in excellent condition; and there’s guaranteed availability for seasonal demand.
Rudy Goossens, Senior Manager, Transport at CCE Belgium, says, “Getting products to our customers in time is a daily logistical challenge. Pallet pooling with CHEP makes this complex supply chain a lot simpler, so our people can focus on their core business.”