Our Customers
Container optimisation means cost savings for
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.
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".
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/