A business making good use of CHEP’s pallets in its devanning operations is Brett’s Transport who appointed CHEP as their preferred pallet provider
A visit to any major UK port demonstrates clearly the huge growth in container traffic coming into the UK. It is estimated that more than four million TEU (Twenty Foot Equivalent) containers of goods are imported to the UK every year of which about 1.5 million contain goods such as food, beverage, durables and clothing. Of this total some 4% of containers are devanned at the port side. Devanning is the process whereby a container is unsealed and its contents repackaged, often palletised, for onward distribution within the supply chain. Of the remainder, 75% are transported out by road and 21% by rail to undergo a similar operation inland, before the goods end up at their final destination for retail consumption.
This operation of devanning uses an estimated 21 million 1200x1000mm pallets every year, with about eight million being used by 3PL operators at port-centric or inland locations. With such large volume, it obviously represents an attractive opportunity for pallet operators like CHEP. “There is significant potential for growth in this market as the number of containers reaching the UK has been increasing year-on-year and the opening of new facilities – such as the Thames Gateway deep-sea port – will further boost UK port capacity,” says Derek Fleming, Business Development Manager at CHEP. “Thames Gateway will not only be the UK’s first 21st Century major deep-sea container port but also home to Europe’s largest logistics park.”
Choosing the right pallet supplier is an important business decision though, and there are many facets that can influence the decision making process. As many Logistics Managers are only too aware, it’s not always obvious where a firm’s total supply chain costs lie. Some – such as the purchase costs of materials – are visible but there are many other costs that are harder to track and measure. “These charges can include administrative costs associated with managing different equipment as well as the impact of poor platform selection that can lead to goods becoming damaged whilst in transit,” added Derek. “Using a single pallet supplier also reduces management costs and pallet sortation time, as well as freeing up valuable depot space taken by stored pallets.”
A business making good use of CHEP’s pallets in its devanning operations is Brett’s Transport who appointed CHEP as their preferred pallet provider citing flexibility, supply chain cost reductions and increased operational control as reasons for selecting CHEP’s Managed Exchange Service Offer.