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Container optimisation means cost savings for
CHEP

Case Study Logo - CHEP

A simple load optimisation tool provided by eCargo ensures CHEP achieves optimum container utilisation, resulting in cost savings and other flow on benefits.

The global leader in pallet and container pooling, CHEP helps manufacturers and growers transport their products through the supply chain to distributors and retailers. Handling over 2.5 million equipment movements daily, CHEP serves 300,000 customers in more than 40 countries.

At a glance

Business Objective

Optimise shipping container utilisation.

Solution

Load optimisation software Cube-IQ, distributed throughout Australasia by logistics tool experts, eCargo.

Outcome

Significant cost savings.
Improved shipping container utilisation.
Provided reliable benchmark measurement for utilisation rates.
Visibility over true product relocation costs.
Improved operational process.

The Challenge

The Challenge

CHEP issues, collects, conditions and re-issues over 285 million
pallets and containers world-wide. Distributing hundreds of
different packaging types of varying weights and dimensions out
to customers in mixed loadings, CHEP Automotive Asia Pacific
wanted to ensure they were getting the most from their shipping
container usage.

“We know that our container optimisation can always be improved, but we didn’t have an accurate benchmark to measure our performance against”, says CHEP Logisitics Director, Alec Trikash. “This information is also important to be able to accurately calculate true relocation costs”.

The Solution

State-of-the-art load optimisation software, Cube-IQ, has more than answered CHEP’s needs. Distributed throughout Australasia by logistics software solution experts eCargo, the loading engine now forms an important part of the CHEP Automotive Logistics Management System (CALM).

Providing optimal volume and weight utilisation for any compact space arrangement, Cube-IQ is a key tool used within multiple levels of the organisation. An important component of CHEP’s operational process, no shipping container departs without first having the most optimised loading configuration confirmed through Cube-IQ. By storing specific loading criteria within Cube-IQ, CHEP can use the program to assist in optimising loads over multiple containers of differing sizes simultaneously.

Cube-IQ is also used much earlier in the product life-cycle by CHEP product development teams, taking advantage of the loading engine’s capability to design space optimal packaging.

“We wouldn’t have known previously whether optimal utilisation was always being achieved, but using the data Cube-IQ provides we now have a reliable KPI to measure against” says Trikash. “In circumstances where low utilisation is reported, we are able to identify and address the underlying issue, with resulting cost reductions”.

Benefits and Outcomes

A CHEP post-implementation review shows consistent and considerable cost savings over two years for CHEP Automotive Asia Pacific, made directly as a result of improved container utilisation.

“Cube-IQ has been very successful for us. The initial financial investment required was low, we saw immediate benefits and it’s a very good yardstick. It’s pretty straightforward to set-up, easy to use and can be very quickly adapted for different requirements”.

Case Study Icon - Chep
Alec Trikash
CHEP
Logisitics Director

CHEP’s Paul Farrugia, who led the initial implementation, confirms: “Both during and after the implementation of Cube-IQ, eCargo’s support has been good, as are the turn around times for any queries we raise”.

Not only has Cube-IQ enabled CHEP to identify areas where loading utilisation can improve the bottom line, it 's also provided comprehensive loading plans to physically achieve it. This means CHEP now has a better understanding of their true product relocation costs. Following Cube-IQ’s success for Automotive Asia Pacific, its use has now been extended to CHEP’s pallet division in Thailand and Malaysia. Trikash tells us the benefits Cube-IQ will possibly provide to truck utilisation within CHEP are also being considered.

http://www.chep.com/
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