Packaging & Pallets Feature
Variety is the spice: A reduction is formats would lead to a reduction is SKUs.
Multiple choice: A survey of 41 retailers identified 55 different packaging product platforms.
module approach, whereby separate units can be linked together or where the base could perform additional functionality through the addition of a cage for store deliveries or used as a base for display purposes.”
WORKING TOGETHER
Research conducted by CHEP between January – April last year on the supply chains of 41 retailers in seven European countries identified that 24 different packaging formats and 55 different packaging product platforms are currently in use in this crucial last mile of the supply chain. “This forum was a call to arms for all those involved in getting products on to the shelves – manufacturers, retailers, pallet poolers
65%
of total supply chain costs attributed to the “last mile”.
and logistics service providers,” added Andy. “We now need to work together to help make CHEP’s objective of reducing the current 55 packaging platforms down to a much more manageable level a reality.” To further help simplify the last mile, CHEP is also using (NVM) Network Value Mapping – a concept developed by Incept, the supply chain software solutions specialist – and currently being trialled by CHEP to boost much-needed collaboration over distribution networks. Currently, more than 30% of trucks are still running empty – a high level considering the cost of fuel and the public’s ever-growing demand for reduced CO2 emissions from all forms of transport. This technology can also be used to discover where the blocks are in a specific supply chain as it allows management teams to get together and evaluate rapidly and at low cost, the benefits of potential initiatives using a common approach.
Other topics discussed at the CHEP forum included ways to eliminate the need to load 4 x quarter pallets on to a ‘slave’ Europallet
for road journeys which takes up more truck space and adds complexities – and therefore cost – to getting products to the consumer. Another challenge to simplifying the last mile is posed by the continued growth in urban convenience stores such as Tesco Express. These stores have limited storage and display space and smaller aisles, so they require regular replenishment with products ready to go directly on the shelf. However, as they are also likely to be in residential areas, the noise associated with deliveries is increasingly an issue. “Everyone is agreed that the basic objectives are to increase product availability in-store, improve the shopper experience through faster and more efficient replenishment, and reduce waste,” added John. “With this in mind, CHEP will be hosting further Last Mile Solutions customer forums to build on this event and we will continue to keep our key customers engaged on this important issue which affects manufacturers, retailers and logistics service providers alike. n
www.chep.com
www.shdlogistics.com
Storage Handling Distribution June 2012 57
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