According to data collected by CHEP, a sustainable logistics company with a strong global presence in more than 60 countries, which has been operating in Brazil for 20 years, the B2B (Business to Business) sharing model allowed companies to reduce costs and optimize resources during the pandemic. In 2021, CHEP customers saved the equivalent of 3160 megaliters of water, or approximately 1240 Olympic size swimming pools.
“In the context of COVID restrictions and the parallel decrease in financial capabilities, many companies have turned to outsourcing essential tasks, which has driven the development and greater adoption of shared services. Sharing logistics, resource management services, among others, in addition to being a more practical and efficient option in many cases, saves operating costs for companies, resulting in greater margins”, contextualizes Guillermo Pando, vice president of CHEP for South America South.
For example, airlines share their aircraft and services through aeronautical alliances, and the civil construction industry traditionally uses equipment leasing. What is new is the penetration of shared consumption models in supply chains.
CNI¹ data from 2019 reveal that, in Brazil, 76% of companies already develop some circular economy initiative. Practices such as water reuse, material recycling and reverse logistics are the main implementations in the country. The same survey reveals that more than 88% of entrepreneurs consider the circular economy to be very important for Brazilian industry.
At the same time, large industries buy up to 5 million pallets a year to transport products. By moving to shared use of pallets and distribution centers through pooling, a key part of the "Circular Economy" model on which CHEP, a logistics solutions company, bases its operation, costs are not only reduced, but also capital expenditures are deducted from the company's balance sheet. In addition, pallet management is simplified, which also saves company resources, such as specialized labor, maintenance, among others.
Based on calculations made by CHEP, the adoption of the pooling model allows cost reductions of 17% to 30%. CHEP manages transport pallets, while manufacturers and suppliers use the pooling service to deliver goods to points of sale. CHEP's specialist ensures that pallets are delivered on time to the manufacturer, returned by the dealer, repaired and refurbished. In this way, companies can rent them instead of buying them, which reduces the financial and administrative burden.
Another driver for the development of resource sharing between companies is the growing need to reduce the negative impact on the environment. Transport is the second largest source of greenhouse gases in the world, after energy and electricity production, according to UN³ and WHO data.
“Today, respect for the environment of a product or service is imposed on society as a whole, starting with consumers and ending with investors. Shared services are becoming one of the most promising tools to reduce the environmental footprint of companies, which is why the beginning of the production and trade chain, considering logistics, is also very important”, warns Guillermo Pando, from CHEP.
CHEP's share and reuse model offers numerous environmental savings to our customers' supply chains compared to single-use alternatives. In 2021, CHEP solutions helped its customers save on the following:
- 2.4 million metric tons of CO2 equivalent to the CO2 emitted by 454,500 homes in one year
- 3160 megaliters of water, or approximately 1240 Olympic size pools
- 3.1 million cubic meters of wood
- 3.2 million trees
- 1.4 million tons of waste
Brazil is the country with the highest road concentration of cargo and passenger transport among the main world economies. 58% of transport in the country is done by road - against 53% in Australia, 50% in China, 43% in Russia². This indicates that most of the cargo in the corridors is transported by trucks, which are currently the source of the greatest number of polluting emissions. Globally, empty mileage is responsible for tens of millions of tons of CO2 per year.
Carpooling allows companies to jointly ship raw materials or goods, thereby increasing the load on vehicles and significantly reducing emissions associated with empty mileage. Sharing models in the B2B segment offer compelling economic and ecological advantages. By intelligently sharing their resources, companies can improve their operational efficiency and have a positive impact on the planet.
“The number of companies implementing sharing models will undoubtedly increase in the coming years. We here at CHEP have felt this increase globally and we have positive perspectives”, adds the VP for South America, Guillermo Pando.
About CHEP
CHEP is a sustainable logistics company that helps move more goods to more people in more places than any other organization in the world. With a strong global presence in over 60 countries and market leadership in North America and Western Europe, CHEP is part of the Brambles Group and has been operating in Brazil for 20 years. Your pallets, cases and containers form the invisible backbone of the global supply chain and the world's biggest brands trust CHEP to help them transport their products more efficiently, sustainably and safely. As a pioneer of the sharing economy, CHEP has created one of the most sustainable logistics businesses in the world by sharing and reusing its platforms under a model known as "pooling". CHEP's goal is to create a positive impact on the planet and society by pioneering regenerative supply chains. CHEP primarily serves the fast moving consumer goods (eg dry food, grocery and health and personal care), fresh produce, beverage, retail and general manufacturing industries. CHEP has approximately 345 million pallets, cases and containers operating with a network of more than 750 service centers, supporting more than 500,000 customer touchpoints for global brands such as Procter & Gamble, Sysco and Nestlé.
Tags:
Finance
