22 WESTERN PALLET
“Another key difference with a plastic pallet model is the introduction and piloting of a digital operating model,” Nador stated. “This leverages Costco’s RFID network and integrates it with ours to provide pilot visibility throughout the Costco supply chain.”Each plastic pallet is uniquely serialized with RFID, and the CHEP service center network has also been outfitted with the required technology and processes to support the new model.
“This model and the data that it yields will provide us and our customers with greater visibility of what is happening with the pallets in the entire Costco supply chain,” Nador added.
Because CHEP pallets can move under load to Costco customers, a new deposit system is also being tested. The goal is to drive customer accountability for pallet loss for members and small businesses that buy at Costco and to compensate CHEP for those asset losses.
The CHEP plastic pallet
The CHEP modular plastic pallet is UL approved for fire safety and ISO 8611 rated for loads up to 2800 pounds. Nador said that the pallet has gone through many iterations and modifications “to ensure that we were putting the best plastic pallet possible in the market.”
Sustainability was key from the beginning, she emphasized. “We wanted to ensure that our pilot is able to support our customers for many years without having to constantly regrind into new assets
. So we innovated and we developed a modular solution that is easily repairable.”
“This repairability not only supports our business model, but it also shows that we stay true to our belief of creating environmentally friendly, sustainable supply chains,” she continued. “In fact, when you compare a wooden pallet with a plastic pallet in the Costco supply chain, the life cycle analysis results are the same.” The sustainability is driven by the durability and repairability of the pallet, as well as through the strong pallet control in the Costco supply chain. Also, avoidance of shipping a majority of pallets back through the CHEP service center network also supports the sustainability case.
The pallet IP (Intellectual property) and plastic mold tooling are owned entirely by CHEP.
Costco has a "unique, unique supply chain"