CHEP's Business Model Risks Provide Flexibility By Eliminating Extra Costs

chepin business model provides flexibility by eliminating risks and extra costs
chepin business model provides flexibility by eliminating risks and extra costs

📩 23/02/2021 16:15

The correct management and planning of supply chain flow in the automotive industry is more important than ever in times of increasing local and global risks. Manufacturers and suppliers trying to manage the supply chain with their own pool of equipment; it may face extra costs such as maintenance, repair, storage and transportation. In addition, this whole process brings about idle investment, extra labor, inefficiency and risks. Offering innovative solutions for supply chain, CHEP's business model based on sharing and reuse; By eliminating all risks and extra costs, it provides more flexibility and increases competitive power.

The automotive supply chain is among the world's most complex supply chain, covering millions of parts from thousands of different suppliers in many countries of the world. The automotive supply chain faces risks due to the trend towards electric vehicles, the rise of environmental legislation, political events and developments between countries. Manufacturers and suppliers trying to manage the supply chain with their own pool of equipment; It faces the same risks in direct proportion to these developments. With its business model based on sharing and reuse, CHEP carries out an effective and efficient packaging management process by eliminating risks with its services and solutions for the global automotive industry.

"Just in time" model should be added to the "just in case"

Complex dynamics such as political, environment and health necessitate the addition of the "just in time" model to the "just in case" model in order to keep consumer and producer demand competitive in the future. Dealing with uncertainties and making changes in the process; It requires sufficiently flexible supply chain without waste, costs and inefficiency. In addition, in cases where the demand cannot be predicted, other problems to be overcome are the availability of the right packaging in the chain at all times, keeping the packaging quality constantly high and reducing product damage and returns. When all this is achieved, supply efficiency is maximized, so products can be delivered on time.

"During uncertain times, pressure on the supply chain can intensify"

The risks of moving beyond the boundaries of automotive parts stating that Turkey brought CHEP Automotive Europe Region Key Account Leader Gökgöz Engine, "on indefinite period, may intensify pressure on the supply chain. Packaging management, on the other hand, is one of the main areas where you can build operational resistance to protect against interruptions, disruptions and risks. As CHEP, we increase the flexibility and efficiency of both the main industrial automotive manufacturers and suppliers with our network and knowledge. In addition to industry-standard plastic case and foldable container solutions, we provide service with protective inner profiles and accessories, and help protect the products ”.

"We eliminate non-value added activities"

Gökgöz said, “CHEP's business model based on sharing and reuse improves the supply chain by eliminating risks; offers a single partner solution that increases flexibility and efficiency. We eliminate non-value-added processes such as production of new packaging specific to products, storage, maintenance, repair, transportation and management, and reduce their costs. We analyze their entire supply chain so we can effectively move more loads with less equipment. "We are increasing their competitive power by managing the supply chains from end to end."

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