CHEP has come a long way since 1946, when the Australian Government created the Commonwealth Handling Equipment Pool to manage the redistribution of defence supplies following World War II. Now, CHEP’s distinctive blue pallets and reusable containers move, store and protect everything from tomatoes to shampoo and car parts.

CHEP Asia Pacific President Howard Wigham says:“CHEP’s approach is to have a thorough understanding of our customers so we can develop or implement solutions that help make them more efficient.

“For CHEP, being lean is a science of reducing waste and improving efficiencies. By applying the principles of sustainability and lean thinking to a customer’s supply chain, CHEP can provide solutions that are better for both the customer’s bottom line, and in many cases the environment,” says Wigham.

To achieve this, CHEP has evolved into much more than just a pallet company. CHEP’s offerings now include tailored returnable plastic crates and containers and accessories, as well as systems and support services.

Environmentally sustainable solutions - from farm to supermarket

CHEP’s approach to sustainability has already led to major innovations in packaging and transporting produce through the supply chain to the supermarket. In the past, produce like tomatoes would have been harvested, placed in one container, transferred to a second container to be transported to the city, and then handled yet again as it was placed on the shelf. Packaging like waxed cartons would be used during transport and disposed of at the supermarket, creating unnecessary packaging waste.

Wigham says CHEP’s solution was a new plastic container designed to remove double-handling, reduce in-transit product damage and packaging waste in supermarket supply chains. “Now, the produce leaves the farm in CHEP containers and stays in the same ventilated packaging until it reaches the supermarket store display.”

Working hand-in-hand with Australian industry

By knowing what customers needed, CHEP was able to create a solution that delivered. It’s an approach that’s seen time and time again throughout CHEP’s history. In the automotive industry, CHEP won an environmental excellence award for a custom solution it developed for an Australian manufacturer, and in 2006, CHEP launched a set of modular crates designed especially for car parts of all shapes and sizes.

“Previously, some components used to arrive in cardboard boxes. A little bit of rain could mean soggy, unstable packaging, as well as rusty car parts,” says Wigham. “By introducing durable, lightweight plastic containers, CHEP has created real value for the automotive customer through reduced in-transit parts damage, leaner processes and reduced packaging waste.

“CHEP’s strategy was to develop a detailed knowledge of its customers’ operations and logistics processes. It’s only by understanding the complexities of the modern supply chain that CHEP is able to devise leaner, greener solutions.”

Enabling green technology

For CHEP, achieving leaner and greener supply chain solutions has also meant developing cutting edge technology. Wigham points to CHEP’s Automotive Logistics Management (CALM) computer system as another major waste-reduction innovation.

The prize-winning CALM computer system reduces waste by helping automotive manufacturers coordinate their packaging needs. CALM automatically calculates upcoming packaging requirements on a daily, weekly or monthly basis using the customer’s own production forecasts, rather than historical data. The unique technology means customers always have the right equipment in the right place at the right time.

CALM has met with industry applause and it was recently recognised in the Technology Application category of the 2006 Manufacturers’ Monthly Endeavour Awards.

CHEP’s commitment to the environment is easily visible in all of its day-to-day operations. According to Wigham, CHEP sees environmental management as an important ingredient of all business policies, strategies and decision-making.

“CHEP initiatives to cut out double-handling, and eliminate unnecessary one-way packaging like plastic strapping, styrofoam and cardboard, show that we’re looking for ways to reduce waste at every step of the supply chain for economic and environmental benefit,” he says. Wigham believes CHEP’s range of space-saving collapsible crates and containers is another example of innovative lean thinking, saving space in warehouses and on transport vehicles, as well as incorporating designs that help reduce OH&S risks.

CHEP’s growth over the years has also had a positive impact on sustainability. Today, CHEP’s large national transport network reduces the need for “dead transport legs”, where vehicles have to return to their point of origin carrying empty packaging.

Globally, CHEP believes that its pooling services eliminate more than 6 million tonnes of wood packaging from landfills every year, or the equivalent of 16 million trees. Components that can’t be reused by CHEP are recycled to create fuel,mulch and animal bedding.

Smart for the bottom line – Smart for the environment

Wigham says CHEP’s sustainable approach has meant real benefits for customers as well as the environment. “In the first instance, customers see reduced costs, improved product quality, and fewer losses during transportation. However, there is more to it than the bottom line,” he says. “Smart packaging solutions can create efficiencies but when you consider the environmental impact, it just makes sense. It can also help companies meet their commitments under the National Packaging Covenant.

“According to the Bureau of Transport and Regional Economics, total freight is set to almost double in the next two decades. Supply chain efficiency is going to continue to be absolutely critical for both Australian industry and the environment.”

CHEP at a glance:

• 280 million pallets and containers
• Over 2.5 million equipment movements every day
• 440 service centres across 42 countries
• 300,000 customers
• 7,700 staff
• Founded by Australian Government in 1946
• Acquired by Brambles in 1958

Contact Cate Binet
Telephone: +61 2 9856 2450
Website: www.chep.com

CHEP and sustainability: http://www.chep.com/chepapp/chep?command=fwd&to=aboutus/corporate_responsibility.jsp&lcd=en