Case Study: Coca-Cola European Partners

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Putting reliability at the heart of the supply chain

Coca-Cola European Partners (CCEP) is a multinational bottling company. Its Spanish division employs 900 people at one of the world’s most advanced bottling plants, and delivers to 68,000 retail and distribution customers across 110,000 km².

The Challenge

Consumers have been trying to reduce the amount they spend on food and drink in recent years, in response to slow economic growth. So producers have been under pressure to offer lower prices. CCEP knew its use of white pallets was a source of inefficiency, and wanted a better alternative.

The Answer

With CHEP’s managed pooling service, CCEP rents and shares high-quality pallets, instead of needing to own, maintain and store them. This has cut costs while improving the performance, sustainability and safety of its supply chain.

The robustness of CHEP’s equipment is vital to the efficiency and safety of all our processes.

José María Sánchez Industrial and Logistical Director, CCEP Spain

Reliability, efficiency and safety on the production line

CCEP’s Fuenlabrada plant uses the latest technology, but sub-standard pallets can easily bring its production lines to a halt. So the fact that CHEP pallets are quality-assured and durable is highly beneficial. “They are far superior to whitewood pallet alternatives and allow us to optimise the efficiency of our supply chain operations,” explains José María Sánchez, Industrial and Logistical Director of CCEP Spain. Indeed, he adds, “the robustness of CHEP’s equipment is now vital to the efficiency and safety of all our processes.”

More efficiency across the CCEP supply chain

To operate as efficiently as possible, CCEP needs access to the right quantity of pallets at the right times. “The most difficult thing to predict accurately is demand for our products,” Mr María Sánchez says. “For example, we have 75 products that only account for 1% of our sales, but still generate 90% of transactions.”

The scale and flexibility of CHEP’s service has therefore made a big impact. CCEP can order equipment up to 5pm, with guaranteed next-day delivery from 6am. It can now serve customers more reliably and avoid unnecessary delays.

“The fact that CHEP’s service centre is located just 3km from our plant means that they can offer us maximum flexibility,” Mr María Sánchez adds.

Why moving away from white is a sustainable solution

CCEP always looks to its suppliers to help improve its sustainability. CHEP’s managed pooling service, based on pallets that are reconditioned, reused and ultimately recycled, has reduced the company’s reliance on disposable white pallet packaging destined for landfill. CHEP also ensures that the timber for its pallets is sustainably sourced.

Mr María Sánchez concludes: “We try to eliminate waste wherever possible throughout the bottling process. Our greatest contribution in the area of palletisation is to minimise the amount of wood we use, which CHEP makes possible through the managed reuse of its pallets throughout our supply chain.”

Five benefits of the CHEP solution

  1. Increased efficiency: pallets are always available in the right quantity and location, and can be shared across the supply chain
  2. Dramatically reduced product damage, thanks to the consistently high quality of CHEP equipment
  3. Greater sustainability: the need for extra packaging associated with white pallets has been eliminated
  4. Reduced production-line delays and improved safety, again thanks to CHEP’s quality assurance
  5. More capital for CCEP to invest in its business – now it can rent pallets rather than having to buy them

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Case Study: Coca-Cola European Partners | CHEP UK