CHEP is involved in thousands of supply chains for consumer products companies and their brands. What is the
latest trend in supply chain management?
Ben Eugrin: Manufacturers and retailers want to make their
supply chains more efficient, reduce costs and improve sustainability. That is where CHEP comes in. We are connected to more
supply chains and transportation lanes than any other company,
and can put that knowledge to work for our customers by identifying efficiency, cost-savings and sustainability opportunities
from the beginning to the end of a product’s supply chain.
For instance, 95 percent of CHEP customers that utilized our
Value Stream Mapping capability found 12 or more areas where
they could become more efficient. Additionally, from July 2015
to July 2016, companies partnered with CHEP to implement
innovative solutions across their supply chain that generated $20
million in savings, created $13 million in new revenue, eliminated
more than 3. 5 million empty miles and 13 million pounds of CO2
from North America’s transportation network, equivalent to the
energy needed to operate 631 U. S. homes for one year.
What is the latest new product from CHEP?
The CHEP 40 by 24 inch shared and reusable half pallet is an
innovative retail store fulfillment solution used to simplify and
streamline product replenishment and promotional displays.
It simplifies in-store product movement and reduces out-of-stocks and product damage. It is also a popular platform for
floor-ready promotional displays that increase brand awareness,
retail visibility and sales.
CHEP’s half pallet can reduce warehouse handling costs by up
to 25 percent, decrease in-store labor by up to 75 percent, lower
shelf replenishment time by up to 60 percent and increase sales
by up to 30 percent. For example, CHEP helped a well-known,
multinational canned soup company increase sales by using
CHEP’s half pallet for its in-store merchandizing displays. The
new displays increased visibility and reduced product damage.
Now, the soup manufacturer is using CHEP’s half pallet for 100
percent of its traditional in store soup displays.
Sustainability is vitally important to
consumer packaged goods companies. What is CHEP doing to help them
reduce their environmental footprint?
CHEP has a unique and powerful business
model that is inherently sustainable. Customers
use and reuse our platforms to transport goods throughout their
supply chains, then return them to us or transfer them to another
participant in our network for reuse. Thus, we enhance sustainability by helping customers transport goods through their systems more efficiently, sustainably and safely. In addition, we are
an important part of the push for a “circular economy” that produces zero waste and zero emissions.
Our transportation solutions help eliminate empty truck miles
within the consumer products supply chain and reduce the
amount of climate-change-inducing C02 that is emitted into the
atmosphere from product transportation.
What is the secret to CHEP’s success?
CHEP’s deep experience and expertise in developing innovative
solutions from the beginning to the end of our customers’ supply chains provides tremendous value. For instance, our value
stream mapping, transportation, unsaleables reduction, unit
load optimization and packaging performance solutions help
our customers improve the efficiencies of their end-to-end supply chain. That work is supported by the CHEP Innovation Center.
It is an ISTA-certified, state-of-the-art test facility that simulates
real-world conditions that help CHEP and its customers evaluate their supply chains and develop innovative solutions that
increase efficiency, reduce costs and increase sustainability. Led
by ISTA-certified experts and engineers, the Innovation Center
has conducted thousands of tests for more than 100 companies,
helping to build the modern consumer goods supply chain we
Our supply chain expertise and testing capabilities form a
powerful combination that improves supply chain efficiency
and helps our customers serve their consumers better.
WITH BEN EUGRIN
Ben Eugrin, director, supply chain solutions North America at CHEP,
says CHEP helps improve supply chain efficiency.
GHQ TALKING SHOP