CHEP, the world’s leading provider of pallet and container pooling solutions, has recently implemented a transportation management system (TMS) developed by CHEP’s sister company LeanLogistics. LeanTMS offers significant benefits in visibility and control by providing real-time information across the entire transportation network. CHEP is using the system to continuously monitor the status of transporters and loads facilitating proactive communication with its customers in the event of any service issue. The system is already delivering a demonstrable positive impact on cost, service, levels of control and sustainability for both CHEP and its customers.
Enrique Montañés García, CHEP VP Logistics for Europe said: "Warnings and alerts are automatically issued when deliveries are at risk of being late. The system calculates a precise time, known as the Must Depart by Date, based on distance and speed. The truck must leave the service centre by that time in order to avoid arriving late at the customer’s location."
The TMS provides seamless integration with CHEP’s warehousing system, and the Must Depart by Date is continuously checked against loading confirmation of the origin location. Thirty minutes prior to expiration, the system automatically issues a "warning," which is sent to transporters and planners to advise them that the truck should be loaded within the next 30 minutes to be on time. A second alert is sent 10 minutes prior to expiration, indicating that the load should be ready to go in 10 minutes or it will be late.
"The PGI system (Post Goods Issue) is a control software application developed by LeanLogistics, which can accurately predict if a shipment is at risk of delay" added Mr Montañés García. "We want to improve control, and with this tool we have improved our visibility of the complete Supply Chain. The sequence is "warning" – "alert" – "communication to transporter" – "search for a solution" and in the end "proactively communicate to customers" before a delay has occurred."
"At CHEP Europe we are continually seeking ways to enhance customer satisfaction by improving on-time delivery and providing adequate notice in case of late deliveries. This new efficiency tool enables our logistics team to be proactive, because now we can calculate when we have to load the trucks and when they have to leave to be on time. It allows us to keep the focus on service and continuously improve our customer’s experience of working with us" he concludes.