capabilities presentation 100101 kk chep

1

2

Creating Supply ChainEfficiencies

3

OVERVIEW

1 The Company

1 The Service

1 The Product

1 The Benefits

4

MANIFESTO

• Customer Driven– Cost Effective Pallet and Container

Pooling Services

– Quality Products and Services

– Business Solutions Supported by Information Technology

• CHEP streamlines the logistics process by removing non-value added activities from the supply chain.

5

WHO WE ARE

• 1946: Established by the Australian government as

the ‘Commonwealth Handling Equipment Pool’

• 1958: Acquired by Brambles Industries of Sydney,

Australia

• 1990: Established US pool based on industry

studies showing cost of current pallet system

6

WHO WE ARE

• Worlds largest equipment pooling company– 160 million pallets– 34 million containers – 37 countries and six continents worldwide

• Extensive depot and premium service center network

• Investing in technology to provide higher quality products and services

7

HOW IT WORKS

•Manufacturer•Grower•Supplier

• Retailer• Distributor• End User

8

TOTAL SYSTEM BENEFITS

• Total System Benefits

– Consistent Quality Pallets

– Pallets Inspected to Strict Standards

– Pallets Repaired to Rigid Specifications

– Delivered Direct to Customer

– International Support Service Team

– Environmentally Friendly

9

ENVIRONMENTAL BENEFITS

• Environmentally Correct– Reduce– Reuse– Recycle

• Eliminate 6 Million Tons of wood from landfills• Remove 750 million pounds of corrugate waste

10

QUALITY THROUGH TECHNOLOGY

• Automatic Digital Inspection

• ePooling Solutions

– EDI

– Portfolio

– Portfolio Personal Edition

11

PRODUCT OFFERING

• The Pallet– 48x40 Block Pallet

– True 4-Way entry• Greater efficiency in loading and unloading

– ASRS compatible

– Full Perimeter Base• Evenly distributes load

• Provides block stacking

• Eliminates notched stringer

– 2800 lb payload rating

12

PRODUCT OFFERING

• The Pallet– 48x40 Block Pallet

– True 4-Way entry• Greater efficiency in loading and unloading

– ASRS compatible

– Full Perimeter Base• Evenly distributes load

• Provides block stacking

• Eliminates notched stringer

– 2800 lb payload rating

13

PRODUCTS

• Returnable Plastic Containers (RPCs)– Standard footprint 60cm x 40cm– Ventilated– Merchandisable– Cross-stack and Column stack– Easy assembly & disassembly– Reduces waste, product damage and labor

14

CHEP AS A CONSULTANT

15

PALLET SYSTEM ALTERNATIVES

• One Way Pallet: customer ships on a one-

way platform, no exchange

• Pallet Exchange: exchange between

supplier and retailer, need to uncover

detailed costs

• Slip Sheet: Uses slip sheets (very low cost),

not pallets, focus on soft costs,

transportation, handling efficiencies

16

COST SAVINGS OPPORTUNITIES

• Hard Costs

– Pallet Purchase

– Pallet Repair

– Transportation Savings

– Reduced Administration Cost

– Warehouse/ Plant Efficiencies

17

COST SAVINGS OPPORTUNITIES

• Soft Costs

– Product Damage

– CPU Adjustment

– Safety Concerns

– Environmental Issues

– Increased Customer Service

– Carrier Relationships

18

NEXT STEPS

• CHEP wants to work with you to:

– Improve our understanding our your supply chain

– Identify possible benefits for your company and supply

chain

– Identify opportunities to deliver improved customer

service to your supply chain partners

19

THANK YOU