Investment in automation

As part of a strategy to protect its market leading position in pallet pooling in the UK, CHEP has made a huge investment in a modern automated service centre in the south west, reports Simon Duddy

Howard Wigham is relatively new to the post of managing director of CHEP UK & Ireland but he has a wealth of experience within the CHEP business and is clear about how to steer the pallet pooling behemoth.

"We are a big part of the EMEA business which is worth US$1.33 billion annually. The UK business is worth US$352m alone and as such, we use a business model that focuses on three key principles - protect, improve, grow. We are the market leader with over 50% share, and to protect that we need to show service excellence and differentiation," Howard explains.

"Growing is about identifying opportunities we can expand in to and we are also seeking to improve operational efficiencies and asset productivity, which is partly what Severnside is about." Severnside is a new state-of-the-art pallet repair facility near Bristol. The service centre at the eight-acre location on the new Central Park development represents an investment of £4.6 million, and replaces CHEP's service centre nearby in Avonmouth. The facility is equipped with the most advanced automatic faultdetection and repair equipment available.

The Severnside facility is manned by 95 full-time CHEP employees working across a three shift pattern, delivering 24-hour, seven-day operation. It can process approximately 100,000 pallets a week with most of the inspection, repair and repainting process occurring automatically. The service centre features the latest laser system, which checks the pallets for damage while an automatic cutter identifies and removes broken pallet components. A robot then fits new pallet components as required and nails them securely in place.

Howard continues: "As a business, CHEP helps its customers to move, store and protect their goods through the supply chain in a cost-effective, safe and environmentally sound way. This new site strongly reflects our overall business ethos and will improve platform consistency and quality for our customers." While CHEP's site in Manchester has the automatic inspection system, Severnside is the first to combine it with the repair technology. The new system has additional capabilities, such as being able to automatically remove and replace top and bottom boards and is also able to remove the internal support "stringer" components that hold the top and bottom decks of the pallet together, a process that was previously manual. The stringer is the board in the centre of the pallet between the top boards and the blocks, which is difficult and time consuming to repair manually. Through the use of the latest equipment the Severnside plant is capable of running at very high speeds, processing up to 1,200 pallets per hour at its peak.

Further improvements at Severnside include reduced turnaround time for vehicles providing collections and returns, as a result of three extra lanes, which improve segregation of vehicles entering and exiting the site. In addition, drivers can exchange paperwork with the service office without leaving the cab, reducing queuing times while improving driver safety.

The new building has been designed to minimise its carbon footprint and reduce operating costs. Rainwater is collected and used to wash pallets as well as to flush toilets onsite, while thermal panels on the building's roof are used to heat the water.

Motion-sensitive passive infrared lights ensure electricity consumption is kept to a minimum, while 12% of roof space provides natural light, further reducing energy consumption while creating a more pleasant working environment.

The increased use of automation will minimise manual handling and repetitive operations while improving health and safety. Segregation of people and vehicles inside and outside the building contributes to a safer working environment.

Kevin Galvin, program manager for CHEP UK, Ireland & Benelux, says: "This site clearly leads the field technically, and includes many features to improve both the performance and welfare of our staff.

In addition, the whole pallet inspection and repair process is quicker as all the work takes place on a continuous production line, whereas previously batches of pallets would have to be moved from one line to another. The site is also one of the first in the UK to comply with BREEAM's tough 2011 environmental accreditation scheme for industrial buildings." The Severnside facility shows a market leading company prepared to invest resources in a long term approach designed to drive efficiencies in its business model while keeping key clients from moving elsewhere. The investment does not end in facilities, however, with CHEP determined to develop a relentless service ethos among its staff.

Howard concludes: "We are achieving a more customer focused approach as a company. We have had times around the world when we've lost that focus and it takes time to recover from it.

"In reality, it is a never-ending journey.

We try to promote a mentality internally of 'constructive discontent' - we don't wait for the customer to complain to make improvements. We will drive that ourselves and use data and metrics to help our management team to achieve this."