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CHEP collaborates to cut transport costs

CHEP collaborates to cut transport costs

CHEP, a global leader in managed, returnable and reusable packaging solutions, has announced that its collaborative transportation programme in the UK & Ireland has removed over 900,000 miles of truck haulage.

This equates to a reduction in carbon dioxide emissions of 1,572 tonnes – the equivalent of CO2 emissions from the electricity used by 216 homes for one year - while delivering significant cost savings for its customers.

Dapo Oke, logistics director for CHEP UK & Ireland, said: “The work we’ve done here is building on CHEP’s European-wide transport collaboration programme, and our customers are really starting to see the benefits that such close collaboration can achieve. This is particularly the case on pallet collections, deliveries and return flows, and more and more of our customers are getting involved in the programme and starting to reap the benefits.”

In a 12-month period from July 2013 to June 2014, CHEP UK & Ireland calculated that these collaborative initiatives saved an annualised 932,056 road miles across the supply chain, reducing CO2 emissions by 1,572 tonnes whilst generating significant savings for the partners involved. To date, 13 manufacturers, 11 retailers and nine logistics service providers are participating in the programme, with many more set to follow.

Typically, a CHEP customer delivers products to a retailer on CHEP pallets, then returns with an empty truck. Under the collaborative transportation programme, upon completing such a delivery, the truck – managed by a third-party logistics service provider (3PL) – collects empty pallets from a CHEP partner or collects quality-inspected pallets from the nearest CHEP plant for delivery to another CHEP customer. This process eliminates empty truck movements and reduces transportation costs.

A fundamental aspect underpinning the success of the programme is the level of collaboration that CHEP has managed to achieve from across the supply chain.  William Stobart, CEO of Eddie Stobart Limited, one of the 9 logistics service providers involved in the programme in the UK said: “Every organisation’s supply chain is different and unique, and each initiative varies in terms of size and scale, but ultimately the goal is to reduce transportation distances and empty road miles across their network, which benefits everyone involved, as well as the environment. We’re delighted to be one of the partners involved in the programme and look forward to building on the excellent results achieved thus far.”

CHEP is expanding efforts to bring more customers into the collaborative transportation programme, as well as looking to identify other opportunities for initiatives that create supply-chain cost savings and sustainability benefits for customers. “Through this kind of collaboration, CHEP is helping customers reduce costs and benefitting the environment through lower carbon emissions. CHEP aims to be a strategic partner by becoming a leading green brand, providing the best environmental supply-chain solutions in the logistics industry”, concluded Dapo Oke.

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