CHEP aids smooth movement of goods

An Australian company that can trace its history back to 1875 and currently operates in 45 countries around the world is working closely with an increasing number of companies in China to improve their supply chain efficiency.

Parent company Brambles and CHEP have been in China for nearly two years assisting manufacturers, distributors and retailers in transporting and handling their products safely and efficiently.

Across its global network of 450 service centers, CHEP issues, collects, repairs and reissues about 285 million pallets and containers. Its pallet pooling model allows multiple clients along the supply chain to use the same pallets or containers, reducing supply chain costs as well as waste and product damage.

"Pallets are an integral part of the supply chain in many countries in the world and we are the global leader," said Mike Ihlein, CEO of the company.

"One of the things that CHEP brings to the supply chain in China, and one of the reasons we are prepared to invest in this exciting country, is that the supply chain here is still under-developed," Ihlein said. "Pallets are not used extensively in China at the moment, partly because labor costs have been relatively low and also because, until recently, there has been less focus on efficiency and environmental sustainability.

"The Chinese economy is, however, modernizing very quickly. We have over 50 years of experience in this field in other parts of the world. We are using that experience to help our Chinese customers to modernize supply chain practices by delivering greater efficiencies, reducing cost and ultimately developing a more sustainable supply chain for the benefit of everyone, from manufacturers all the way through to Chinese consumers," he continued.

Some of CHEP's first customers in China were international companies like Coca-Cola. Local companies have also recognized the benefits of the CHEP pooling model, including brewery giant Tsingtao Beer, Asia-Pacific Brewery, Nongfu Spring and Lee Kum Kee.

www.brambles.com

(China Daily 08/07/2008 page39)