How returnable container rental program reduced cost, premium freight and re-packing
A global producer of wiring systems and electronics ships wiring components for cars and trucks to vehicle manufacturers throughout the U.S., Canada and Mexico.
A global producer of wiring systems and electronics ships wiring components for cars and trucks to vehicle manufacturers throughout the U.S., Canada and Mexico.
Challenges
Previously, the company delivered product in some of the more expensive corrugate cases available on the market. Despite this high price point, the quality and integrity of these corrugate containers were not ideal. A litany of pain points are associated with shipping wiring components in this manner, including:
With these pain points in mind, switching to reusable containers seemed like an clear decision. However, there are also numerous costs and challenges associated with owning a fleet of reusables. The first and largest challenge is the capital expense of actually purchasing the assets, capital that could otherwise be invested in core competencies. Other reusable challenges include:
Bottom Line
The supplier needed a solution that would give them the quality benefits of returnable containers, but without the massive capital expenditure and added responsibility of managing and tracking their own reusable assets.
Solution
The supplier contacted CHEP to replace corrugate containers in 11 plants across North America with an outsourced reusable container program. Our all-inclusive fee includes reusable container rental, shipping to the supplier and pickup from the OEM, container inspection/repair after each cycle, 24/7 supply chain tracking, dedicated customer service representative, standard reporting and KPIs for suppliers and plants.
Key Benefits of the CHEP Program
Summary
For over 14 years, CHEP has provided this North American supplier with a reusable container rental solution which empowers the company to achieve greater efficiency, improve profits and reduce capital expenditures. The measurable impact of utilizing the CHEP container rental has led the supplier to cost savings, mainly through the reduction of capital expenditures, premium freight and re-packing. With one less worry about having containers in the right place at the right time, the supplier can focus on their core business.
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