Page 6 - Case Study Annual 2018

Foreword

‘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