Page 6 - Case Study Annual 2018
P. 6


                               ‘Tis the season

                               to be prepared

                            By Trevor Drury, CHEP Director – Manufacturers and Retail, Sales

                 CHEP, proud sponsors of the Logistics Achiever Awards, talks
                   sustainability and outsourcing during the holiday season

            PEAK SEASON can bring out the best or the          Council (FSC)
            worst in a company, and the seasonal peak period   accreditation. FSC
            is something with which the beverage industry      accreditation is one
            is especially familiar. During this time, as the   of two international
            demand for beverages increases, so does the need   gold standards for
            for shipping platforms. Though most within the     forest management,
            industry have created benchmarks over the years    and adherence
            to prepare for diff erent seasons’ shipping needs,   to its standards
            things don’t always go as planned.                 ensures that water
               Those running their own pools have to           quality is protected,
            manage the risk of overinvesting in assets, while   loss of natural forest
            still maximising the opportunity presented by      cover is prevented, the use of highly hazardous
            heightened peak demand. This delicate balance is   chemicals is prohibited, the rights of local
            hard to achieve for any company, but the risk can   communities are protected and much more.
            be mitigated by opting to outsource this function.    CHEP South Africa also owns and operates its
               Coca-Cola Beverages South Africa (CCBSA)        own sawmill in the KwaZulu-Natal Midlands, which
            has been successfully collaborating with supply    holds FSC Chain-of-Custody (CoC) certifi cation.
            chain solutions provider CHEP since 2010. During   CoC certifi cation provides evidence that the
            the severe drought of 2015, CCBSA saw its          certifi ed product originates from certifi ed, well-
            demand for pallets increase by 25 percent, over    managed forests, and verifi es that these products
            and above its traditional peak requirements. This   are not mixed with products from uncertifi ed
            was something we were able to fulfi l, given our    forests at any point in the supply chain, except
            sizeable asset pool and ‘share and reuse’ model.   under strict controls when percentage labelling is
            When outsourcing this function to us, it provides   being used.
            access to on-demand pallets, while resulting in       We believe in providing sustainable supply
            reduced staff  costs for our customers as they have   chain solutions that focus on maximising the use
            no pallet procurement or disposal programmes       of our equipment, while minimising the impact
            to manage. It also means they save on capital      on the environment. Our infrastructure enables
            expenditure, as there is no obsolete equipment     us to supply a range of shipping platforms to our
            on their balance sheet. This is the kind of supply   customers, where and when needed. Whether in
            chain effi  ciency that sets companies apart and   peak season or not, outsourcing this function to a
            enables them to compete more eff ectively in the   seasoned supply chain solutions provider makes a
            marketplace.                                       great deal of business sense.
               Sustainability is an integral part of the CCBSA
            decision-making process and one of the main        Proud sponsors
            reasons they have chosen to partner with CHEP      CHEP is proud to be associated with the Logistics
            over the last eight years. For CHEP, sustainability   Achiever Awards and is committed to supporting
            is at the very core of its approach. CHEP South    logistics excellence, as it is closely aligned to our
            Africa owns 10 timber farms, which it manages      own business model and vision. We fi rmly believe
            to the highest silviculture and sustainability     there is great value to be unlocked by such
            standards – as required for compliance with the    initiatives and congratulate those companies that
            internationally respected Forest Stewardship       have agreed to share their successes. •

        4                                                                The Logistics News Case Study Annual 2018
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