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

Four reasons to choose pallet pooling

When COVID-19 first entered our countries, manufacturers and retailers experienced initial high demand for their goods but are now faced with an increased level of uncertainty for post lockdown forecasting and planning. Many are experiencing financial constraints and need to create a more robust, agile and durable supply chain – 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.

Here we give you four reasons why pallet pooling can help you reduce costs and improve sustainability in your supply chain.

1. Unrivalled network & scale

You need a pallet provider that can guarantee you supply - whenever and wherever you need it.

The CHEP business model is based on a share & reuse model, also known as pallet pooling. We don't sell pallets; we allow businesses to share and reuse them. In this way, we introduce our customers to the world of the circular economy, a consumption model that focuses on shared use.

We have the largest pallet pooling network in the world, consisting of CHEP service centres, manufacturers and recipient locations in many different sectors. The scale and density of our network means we can be faster and more responsive to our customers' changing needs, whether you are faced with a seasonal peak or unexpected demand - we can ensure the availability of our pallets when and where you need them.

We have many customers with international distribution, for which the breadth of our network coupled with the large transactional volumes offer cross-border operational efficiencies and multiply the environmental benefits associated with equipment re-use.

2. High quality pallets

The inconsistent build 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.

All equipment issued to a customer from a CHEP Service Centre is inspected and, if necessary, reconditioned to ensure that it meets our quality standard. CHEP pallets conform to industry standards and are designed for easier, safer, and minimal handling. Our pallets are standardized to fit virtually all 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 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.

3. No hidden costs

How can you minimize unexpected costs due to pallet supply, quality and location? White wood pallets have hidden costs and distributed risks, some critical to your supply chain.

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.

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.

Fonti di Vinadio SpA, a family-owned Italian bottler and distributer of mineral water, chose to work with CHEP as it needed the expertise in pallet management of a supplier which could provide quality pallets in the sizes and numbers to meet its distribution requirements. It wanted a pooling solution that could increase the efficiency of its supply chain and save costs. It also needed a supplier that could help optimize its transport while prioritizing recycling and minimizing waste. CHEP was able to provide a pallet pooling solution that supplies 80x120 and 80x60 pallets of consistent quality for safe handling and product protection. In addition, CHEP was able to help the company optimize its transport routes to minimize CO2 emissions through a reduction in empty transport kilometers - leading to an estimated annual reduction in environmental impact of 1,800 tons of CO2, the equivalent of replanting about 1,500 trees or 41 laps around the world by car!

To calculate the positive environmental benefits you could gain by working with CHEP, click on our Power of Pooling Calculator powered by Life Cycle Analysis ISO certified data.

Thanks to pooling, CHEP can help you to reduce costs, reduce the demand for natural resources, minimize waste and create efficient and sustainable supply chains - creating a positive effect on your business success as well as on the planet.

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

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

May 10, 2022

Four reasons to choose pallet pooling

1. Unrivalled network & scale

2. High quality pallets

3. No hidden costs

4. Sustainability

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