CHEP Delivers Sustainable Solutions in the Automotive Supply Chain

chep offers sustainable solutions in the automotive supply chain
chep offers sustainable solutions in the automotive supply chain

As the automotive industry moves towards producing more efficient and sustainable electric vehicles, it needs to take important steps to reduce supply chain waste. Manufacturers and suppliers that use disposable cardboard boxes to transport parts cause the industry to generate more waste and increase carbon emissions due to inefficiencies in packaging management. CHEP's business model based on sharing and reuse; It raises the sustainability of the sector by eliminating waste generation and empty distances.

It is estimated that 75 percent of the carbon emissions produced by the automotive industry originate from the operation of a car during its lifetime, and 18 percent from the supply chain. In this direction, customers, investors and legislators increasingly demand that the automotive industry focus on the global climate change problem. Providing smart and efficient solutions for the supply chain with technology and innovation, CHEP, which operates in 60 countries, helps its customers to minimize their environmental impact with its business model based on sharing and reuse.

Cardboard boxes negatively affect sustainability

A car contains more than twenty thousand parts from thousands of suppliers in different parts of the world, so there is a lot of packaging waste. Although cardboard boxes used in the transportation of parts in the automotive supply chain seem to be environmentally friendly because they are recyclable at first, they have negative effects on sustainability as they are operationally inefficient. cardboard boxes; It can create waste not only after use, but also by causing damage to costly and sensitive parts such as batteries of electric cars, especially due to their instability. Since cardboard boxes cannot be stacked to fill the trucks at full capacity, they cause the trucks to travel a long distance. This increases the cost of companies as well as harming the environment. In addition, cardboard boxes require more manual processing as they are not suitable for automation lines. Thus, costs, risk of damage, returns and waste increase. Switching to plastic crates that can be shared and reused throughout the supply chain is much more environmentally and cost efficient.

CHEP plastic crates and containers eliminate risk and inefficiency

Engin Gökgöz, CHEP Automotive Europe Region Key Customers Leader, stated that CHEP, which offers special solutions for the automotive industry supply chain with its global network, has made its customers a part of the packaging pool and network based on sharing and reuse, and said, “With our supply chain model, our customers are able to manage, store and manage cardboard boxes. We save you the hassle of spending time and resources to recycle or manage your own packaging pool. Plastic crates, which we maintain and repair before use, are much more robust than cardboard boxes and are designed for use in automatic production. In addition, we always guarantee the packaging supply that our customers need, regardless of demand fluctuations. This model eliminates the cost of wasted warehouses and customers not being able to find a safe. Being part of the CHEP network means less waste for everyone at the same time. Thanks to our strong global network, collection and return trucks travel less distance and cases arrive faster. We also help create new collaboration opportunities with our tracking solutions that eliminate the risk and inefficiency in the transportation of costly and critical parts.”

“The industry will focus more on sustainability”

Engin Gökgöz concluded his words as follows: “Companies in the automotive industry will increasingly focus on sustainability. At CHEP, we have been making key automakers and suppliers more sustainable by sharing our expertise, experience and resources in this field for over 30 years, and we will continue to increase the efficiency and sustainability of the industry with our business model in the future.”

“We partnered with CHEP to reduce our carbon footprint”

Atul Deodikar, Head of Enterprise Logistics and GST, Endurance Technologies Ltd, explained the benefits of partnering with CHEP: “We have partnered with CHEP to reduce our carbon footprint and have made significant gains in sustainability. CHEP's shared and reused plastic crates and containers not only save trees but also prevent packaging materials from going to waste. CHEP's business model serves our company's values ​​very well. “

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