Streamlining deliveries thanks to CHEP’s reliable services

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Streamlining deliveries thanks to CHEP’s reliable services

Colgate-Palmolive - Standardised high-quality pallets mean more satisfied customers.

The Company

The Colgate-Palmolive company is a leading manufacturer of hygiene products operating in over 200 countries throughout the world. Its Romanian branch is engaged in the distribution of products to nearly 60 locations throughout the country, which involves the use of around 50,000 pallets each year.

The Challenge

Customers were unhappy about product damage resulting from cracked pallets. A further inconvenience arose from the use of carriers of variable size and poor quality, which increased operating costs and extended servicing time. The overriding issue was to find an effective, balanced system.

The Solution

At the beginning of 2014, Colgate-Palmolive took a decision to use pallet rental services within Romania. In this way, standardisation of pallet sizes and quality was ensured, and the responsibilities relating to the management and recovery of pallets from carriers were transferred to an external company.

Standardised high-quality pallets mean more satisfied customers

After the introduction of CHEP services into the company, the number of complaints about damage to products because of defective pallets declined because CHEP pallets provide better protection and safety than common wooden pallets. Dan Dascalu, Warehousing and Transport Manager at Colgate-Palmolive, said: “Our experience with CHEP is very positive. As a result of having left the pallet exchange system, we no longer have any problems with their quality and we do not receive complaints from customers over damage to products.”

On a Romanian economic growth wave

Prior to signing the contract in Romania CHEP was already collaborating with Colgate-Palmolive in all of Western Europe, including France, Italy, Spain and Germany. Gabriel Andronescu, CHEP’s General Manager for Romania explained, “We expect that pallet rental services in Romania will become more popular, since more and more producers, retailers and suppliers recognise the potential benefits.” He added, “The economic situation in Romania has begun to improve after a period of recession. We expect a steady growth in volumes of pallets delivered to customers from local CHEP service centres.”

“We are certain that CHEP offers the most efficient and cost-effective solution.”

Dan Dascalu Warehousing and Transport Manager

Transparent costs and environmental benefits

Dan Dascalu, concludes, “The system of wooden pallet exchange was difficult for us to manage and was associated with hidden costs, such as the purchase of new equipment to replace lost pallets. We are confident that CHEP offers the most efficient and cost-effective solution.
Gabriel Andronescu reaffirms, “CHEP’s mission is to improve our customers’ supply chains and to provide them with a solution for cost control and optimal pallet use.”

Furthermore, transport savings and other ecological benefits accruing from cooperation with CHEP help to limit impact on the environment. Sustainable development is one of Colgate-Palmolive’s priorities and one of the company’s global strategy commitments.

Five advantages of the CHEP solution

1. Increased customer satisfaction: reduction in damage to products through the use of high-quality standardised CHEP equipment
2. More transparent cost accounting: no requirement for Colgate-Palmolive to buy or repair pallets
3. Time savings: all tasks related to pallet management transferred to CHEP
4. Improved response times: the introduction of CHEP services has facilitated optimum use of the economic upturn in Romania
5. Achievement of environmental goals: reduction of waste and lower levels of CO2 emissions are key features of the CHEP system

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Streamlining deliveries thanks to CHEP’s reliable services | CHEP Poland