Network optimization study suggested upgrade to Sout Ockendon site
The decision to invest in South Ockendon, and upgrade the existing site has been based on the company’s most recent Plant Network Optimisation (PNO) study which analyses all existing customer flows, returns and issues, cross-referenced against the existing service center network to determine the most efficient locations. This latest study revealed that the existing site at South Ockendon required modernization in order to deliver greater volume for local customers, improve pallet relocations to the near continent, offer more direct deliveries, as well as improve product quality, consistency and customer service.
As part of CHEP’s ongoing commitment to reduce its impact on the environment, the new Service Centre also incorporates advanced sustainable solutions such as rainwater harvesting for the pallet washing area, the installation of LED lighting and improvements in waste segregation. The uplift in volume and productivity at the new plant will generate further network efficiencies, with a potential to eliminate over 800,000 truck km/year and the associated CO2 emissions in the coming years.
4. The moisture content of pallets can also be monitored thanks to technology which probes the top deck of pallets. If the moisture content exceeds a certain level, the pallet will be removed from production.
50% productivity and throughput capacity gain expected
As a result of this automation, it is expected that the new facility will be 50% more productive than previously, with the ability to process approximately 6.2 million pallets per year, compared with 4.1 million pallets at the original facility. Both B1210A standard and B1208A Euro pallets will be handled, with the flexibility to switch products in response to changes in customer demand. Staffing at the new facility will remain the same as previously with approximately 85 full-time CHEP employees.
Tony Bavidge, Returnable Asset Manager, Arla Foods, said: “We know CHEP has the size and scale to cope with our fluctuations in demand. As our business continues to grow it’s great to see that CHEP is also planning for the future by ensuring greater volume demand is never an issue for their customers. That’s what you call forward thinking.”
OCTOBER 2017