CHEP manages the entire administrative procedure, retrieval, and quality assurance of the pallets in a closed-loop system
CHEP is one of the world’s largest supply chain businesses based on a circular economy, operating a ‘share and reuse’ concept for the pooling of its 345 million pallets, crates, and containers, according to a recent corporate press communique.
Leasing pooled pallets is a sustainable and cost-effective alternative to purchasing one-way white wood pallets, which have steadily increased in cost, commonly exhibit quality issues, and often end up in landfills as waste.
CHEP has been recognized by different international organizations for their contribution to reducing waste and CO2 emissions, as they are considered a key example of the circular economy at a global scale. Reusable pallets are durable and of consistent quality and strength, minimizing the chance of customers’ product damage.
In an ever-changing environment where pallet availability is key to keep the supply chain moving, non-returned or destroyed pallets can have a very negative impact on the whole supply chain and ultimately on the end consumer.
CHEP manages the entire administrative procedure, retrieval, and quality assurance of the pallets in a closed-loop system. CHEP equipment or its pallets are owned by CHEP. CHEP never sells its equipment, and all customers acknowledge CHEP’s full ownership rights
CHEP’s trademark blue pallets, which are the same colour all over the world where they operate, are legally owned by CHEP, and never sold to any third party. CHEP’s business model requires that this equipment is returned to the company so that it can be checked, refurbished, and then reused by other customers.
“As pioneers of the circular economy, we are proud to be one of the most sustainable businesses globally and are passionate about protecting our pallets, and other assets, so that they can fulfil our customers’ needs,” commented Feras Abual Hamayel, Manager, Asset Management, CHEP Middle East and North Africa.
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