CHEP invests in the warehouse in Ploiesti in collaboration with Mainfreight, to support the development of the Supply Chain market
September 20, 2017 - CHEP, a global provider of pallet rental and other equipment, consolidates its position on the Romanian Supply Chain by investing in upgrading the Service Center from the Mainfreight warehouse in Ploieşti with a semi-automatic line for refurbishing pallets, in order to sustain long-term development of the activity.
The EUR 600,000 investment is being carried out in collaboration with Mainfreight Romania's logistics and transport company. The decision to extend and automate the Service Center has the impact of increasing productivity by almost 70% (up to 600 reconditioned pallets / hour), decreasing yearly plating consumption by about 125m3 and improving the working environment for technical operators.
The pallet reconditioning line meets the modernization needs of the local Supply Chain. The equipment automatically completes a route for inspection, repair, painting of reconditioned pallets, and recycling of unusable items, the activity being supervised by technical operators according to the global quality standards imposed by the logistics provider.
"Investing in the Ploiesti warehouse and expanding the strategic partnership with Mainfreight guarantees that we will continue to offer quality logistic services as well as permanent availability of pallets in anticipation of the positive evolution of the market," said Gabriel Andronescu, Country General Manager of CHEP Romania.
"The partnership with CHEP and the added-value services we bring to this collaboration show very clearly that we are a flexible, customer-oriented company. This feature of Mainfreight is differentiating in the marketplace and is why customers choose to work with us. The double digit growth of our financial performance over the past 5 years is the answer to our attempts to customize and diversify our logistics and transport services, "said Emil Ion, managing director of Mainfreight Romania.
The CHEP logistics provider registered a turnover of 53.7 million RON in the lease of re-usable pallets for the financial year ended June 30, 2017, up 35% over the previous year, when revenues amounted to 39.9 million RON. CHEP Romania surpasses for the third consecutive year the estimated 20% average annual growth by 2020, amid the upgrading and efficiency of the Supply Chain market and the development of modern commerce.
The volume of leased pallets increased by 35% over the same period last year. During the year, the logistics provider delivered over 3,000,000 blue pallets, representing more than 15% of the annual flows in the domestic FMCG market. The highest volume is recorded in the cleaning and personal care sector (700,000 annual pallets), followed by the beverage (662,000) and vegetable (375,000) sectors.
Also, the CHEP results in the sustainability area show an improvement of each indicator by more than 30% compared to the figures reported on June 30, 2016. By using the pallet rental circular system, local FMCG companies have eliminated the Supply Chain 2,600 m3 of wood, 3,000 tons of CO2 and 250 tons of waste.
For manufacturers and importers of food and non-food goods, switching to the rental system eliminates investment in pallets and the costs of storage, transport, collection, repair and administration, with an increase in shelf-life.
In the pallet rental system, companies periodically request the amount of pallets they need to deliver the merchandise to traders and outsource pallet management to the distribution chain. Pallets are collected from the market after unloading, inspected, refurbished - in the two CHEP local warehouses - and reintroduced into a circular ecological stream.
Due to the benefits of a non-polluting system, companies in Romania are exempted from the contribution to the Environment Fund.
The partnership with Mainfreight Romania started in 2012 and includes market collection, refurbishing, storage and delivery of pallets to CHEP's producing and distribution companies.
CHEP operates logistics operations on the FMCG market in the eastern region of the country through the Ploiesti warehouse and serves Western companies through its warehouse in Timisoara.