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First customer for CHEP’s new Pay as You Wrap solution

CHEP, the global leader in pallet and container pooling services, has signed a three year deal with Bob Martin to become the first customer of its innovative new CHEP Stretch solution.

CHEP Stretch allows customers to use a market-leading, semi-automatic stretch wrap machine on a simple cost-per-wrap contract basis. Bob Martin, the UK’s leading brand name for pet healthcare has signed a contract to wrap approximately 12,000 pallets per annum at their Cardiff location.

Head of Operations at Bob Martin, Chris Scott, said: "We were able to trial the CHEP Stretch service with a view to replacing our existing semi-automatic machine and hand wrapping solution. The improvement in the quality of the wrap and load containment resulted in a dramatic reduction in customer rejections. The cost savings that this will generate for us made the decision to move to CHEP Stretch an easy one."

The CHEP Stretch service was launched by CHEP at the end of 2013 and works in a similar way to a photocopier lease. CHEP provides a stretch wrapping machine, the stretch film, and equipment maintenance. Customers simply add their product and the pallet, and wrap. So, rather than buying their own stretch wrap machines which require significant investment, or leasing a machine on a hire purchase basis, CHEP Stretch delivers a much more flexible solution.

Gill Sinclair, Commercial Director for CHEP’s Pallets operations in UK & Ireland, said: "Our total cost of ownership calculator shows that for some customers we can halve their total load containment cost with the CHEP Stretch solution. Clearly, this is a significant improvement and helps us to achieve our goal of building better supply chains with our customers."

CHEP developed the innovative pay-as-you-wrap service in response to customer feedback and specifically designed the service to protect customers from unexpected risk, cost and hassle associated with traditional hand-wrapping, which can be inefficient and does not always provide adequate protection for loads in transit.

CHEP Stretch delivers the following benefits:
• Protection from risk: improved product presentation; safer, more stable loads and less manual handling that significantly reduces the potential for safety incidents; efficient film stock-holding; management of peaks and troughs in demand; reliable machinery with equipment fully maintained and managed by CHEP; BS EN415-6 compliant .
• Protection from unexpected costs: less product damage and fewer rejected loads; minimised unproductive hours; elimination of unpredictability; reduced risk of film price fluctuations; no capital investment required.

• Protection from hassle: elimination of inefficient wrapping; less re-work of rejected loads; guaranteed inclusive maintenance.

CHEP first launched CHEP Stretch in Australia and New Zealand several years ago and now owns and operates the largest fleet of stretch wrap machines in the Southern Hemisphere. In the UK, CHEP has partnered with Lantech, a stretch wrapping industry pioneer since 1972 and the world’s largest manufacturer of stretch wrapping equipment, having sold over 65,000 machines.

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