How can you reduce costs and improve sustainability in your supply chain?

How can you reduce costs and improve sustainability in your supply chain?

Manufacturers and retailers experienced initial high demand for their goods when COVID-19 first entered our countries. Now, many are experiencing financial constraints and need to create more robust, agile and durable supply chains – without the need for capital investment. These challenges are compounded by the fact that businesses need to prove their sustainability credentials now more than ever with consumers expecting companies to care beyond profit. It should not be a difficult task. A simple switch to pallet pooling could help you achieve an efficient and sustainable supply chain.

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CHEP's sustainable pallets

What is pallet pooling?

Pooling is a share & reuse model based on the principles of the circular economy, where pallets are shared and reused within a network of producers, retailers and other receiving locations, transporters and service centres. When you become part of a pooling network you do not buy or swap pallets, but you rent them and hand over the entire pallet management. Pallets are no longer considered a product but are offered as 'Pallets as a service'.

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Four reasons to choose pallet pooling

CHEP Pallets
 
  1. No hidden costs: We take care of the entire pallet management process – from administration and maintenance to transportation - so you don’t have to.
  2. Unrivalled network & scale: CHEP has been active in global supply chains for more than 70 years. So as a customer you can rely on the largest pooling network in the world.
  3. High-quality pallets: In a pooling network, used pallets are collected and sent to a specialised service centre. There, they are inspected and, if necessary, reconditioned to ensure that it meets our quality standard.
  4. Sustainability: CHEPs business model is inherently sustainable, because we share and reuse all our pallets across multiple supply chains across multiple countries.

1. No hidden costs

How can you minimize unexpected costs due to pallet supply, quality and location? The exchange of white wood pallets has hidden costs and distributed risks, some critical to your supply chain. Among other things, you have to purchase pallets to keep a sufficient stock, exchange them, repair or dispose them yourself and organize return transports.

Unlike the exchange process, renting pallets using the pooling principle means that companies only pay for the pallets that they actually use – freeing you from high capital outlay.

Costs remain transparent and the administrative burden of pallet exchange, one of the main cost drivers in the supply chain, is no longer a concern. This transparent pricing structure eliminates hidden costs, customers pay fixed annual costs for a supply programme that is tailored to their company-specific requirements. 

We take care of the entire pallet management process – from administration and maintenance to transportation - so you don’t have to.

Money
 

2. Unrivalled network & scale

The circular system can only work when supported by a large and strong network. Because the scale and density of such a network makes it possible to respond faster and better to changing needs, whether it is seasonal peaks or an unexpected demand.

CHEP has been active in global supply chains for more than 70 years. So as a customer you can rely on the largest pooling network in the world.

Whether you have local, international or intercontinental flows of goods in the FMCG sector, frozen foods, e-commerce, toys, textiles, electronics or fresh produce, CHEP can help you cut costs and increase efficiency and sustainability. We offer pallets for ingredients and packaging materials, (semi) finished products and for POS displays for in-store campaigns, as well as containers for bulk goods and liquids.

CHEP truck
  

3. High quality pallets

When white pallets are exchanged, there is a high likelihood that the quality is not the same. The inconsistent quality of white-wood pallets can cause platform collapse, additional cost, and delivery refusals, meaning more repairs and replacements. More sorting, too, as you try to decide whether the pallets are fit for purpose.

In a pooling network, used pallets are collected and sent to a specialised service centre. There, they are inspected and, if necessary, reconditioned to ensure that it meets our quality standard. This way, you can be sure of standard-sized pallets, consistent quality, that are also suitable for automated processes.

Every CHEP pallet is independently verified to last up to ten times longer than other pallets. The result for customers is high quality pallets which require less manual labour for repalletization and return handling.

CHEP - Inspection pallets
  

CHEP enables us to secure our supplies and deliver with pallets of superior quality. This allows us to focus on our products and provide better service to our customers, while reducing our environmental impact in line with our CSR commitment.

Laurent Ajello Logistics Manager, Gouters Magiques

4. Sustainability

CHEPs business model is inherently sustainable, because we share and reuse all our pallets across multiple supply chains across multiple countries. We leverage our unique position to uncover collaborative opportunities - linking suppliers and customers to improve transportation efficiencies, reduce costs and carbon emissions. CHEP has commissioned a third-party independent study on the environmental impacts of our pallets vs the market alternatives. A Life Cycle Analysis study considers all environmental impacts through the product life cycle and follows ISO-14044 methodology. CHEP pallets have the lowest environmental impacts in all categories. So by switching to pallet pooling, you not only make your supply chain more sustainable, you also take a step towards achieving your sustainability goals and reducing your impact on the environment.

Many companies have switched to CHEP's circular model and are using our blue pallets for a more efficient and sustainable supply chain. Read their stories, watch the videos and discover the benefits they are experiencing for their business.

Do you want to learn more?
Sustainable
  

Wondering how you can make the switch to a more efficient and sustainable supply chain? Tell us about your supply chain challenges, we are happy to help.

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How can you reduce costs and improve sustainability in your supply chain? | CHEP