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CHEP innovation brings CALM

CHEP is proud to continue its association with the Mercury Awards through the sponsorship of the ‘Top Transport and Logistics Provider’ category.

The award acknowledges innovative strategies taken by Australian 3rd Party Logistics (3PLs) and Lead Logistics Providers (LLPs) to bring about significant competitive advantage for their clients.

To be competitive on a global scale, the Australian manufacturing industry needs to efficiently manage the complexities of its supply chain logistics.

As monitoring carbon footprints becomes increasingly important and the cost of fuel continues to soar, providers of logistics and supply chain services must continue to find new and innovative ways to add value for their customers.

In recent times, Australian OEM’s and Tier 1’s alike have commenced sourcing their components off shore.

The resulting supply chains are increasingly complex and any efficiencies gained through innovations by their transport, logistics and packaging providers can result in a competitive advantage.

This year’s entrants in the Top Transport and Logistics Provider category will have demonstrated a willingness to adapt and to develop innovative new strategies and products to give their customers as much assistance as possible.

One CHEP program for example, servicing an Australian based Original Equipment Manufacturer, has an equipment pool totaling approximately 500,000 individual pieces that is packed in over 70 different types of returnable packaging equipment and shipped to over 50 different international supplier/packaging combinations in nine countries across the globe.

To help its OEM and Tier 1 and 2 automotive industry customers face the challenges of supply chain complexity and increased transit times while simultaneously minimising cost and maximising load efficiency, CHEP Asia Pacific has developed and implemented a new supply chain management system.

Launched in 2006, The CHEP Automotive Logistics Management (CALM) system is the combination of a number of software systems which utilise true “Edifacts” electronic data interactivity capability for international supply chain movements.

It uses customer demand forecasts to determine their packaging requirements.

Internal manual processing of transactions has been significantly reduced and takes place as close to ‘real time’ as practicable.

Today CALM is used by CHEP to manage all of its automotive international programs for the Asia-Pacific region.

Benefits to customers

The CALM system significantly enhances CHEP’s customer service capabilities and enables CHEP to work collaboratively with customers to develop supply chain logistics solutions that work for their businesses.

For example, if the customer can provide CHEP with a forecast of demand for components to be shipped, CHEP can determine the amount of returnable packaging that is required.

This packaging can then be delivered by CHEP, to the next suburb or to the other side of the world.

CALM can improve a customer’s delivery process in a number of ways as CHEP is able to recommend the amount of packaging required to be shipped using the customer’s own forecasts.

Once this forecast is agreed with the customer, CHEP can deliver packaging directly to the customer, or alternatively, reserve packaging at one of CHEP’s Automotive Service Centres, ready for collection by the customer’s transport.

By converting the customer’s forecasted data into CHEP packaging, CHEP is able to recommend the optimal amount of packaging required and calculate optimal load configurations for CHEP packaging within a shipping container, improving cost and transportation efficiencies (per unit).

The CALM customer receives a daily summary of the packaging dispatched to them via email which improves the transparency of account balances and streamlines reconciliation processes.

Customers save time by eliminating the need to manually order from CHEP, allowing them to focus more on their core businesses practices.

Conforms to international standards

CALM Conforms to electronic data standards (see eBuisness section of www.chep.com)

Are you a leading transport and/or logistics supplier?

Enter the Mercury Awards now –

Contact Anna Game-Lopata on 02 9422 2645 or anna.game-lopata@reedbusiness.com.au

Or download an entry form

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