CHEP Australia offers the display pallet and multi-product beverage tray as two retail ready innovations developed specifically to improve operational efficiencies at the store level. CHEP has been developing solutions to address the retail ready challenge for a number of years.
The short distance from the back of a retail store to the aisle where shoppers fill their trolleys and baskets is the current battleground for innovation in the quest to gain efficiency, improve availability and promote sales. Together with the movement from the distribution centre, it is affectionately known as the ‘last mile’.
Many studies have referenced the cost of replenishment and the impact of out-of-stock situations that support the focus and drive for improvement in the last mile. According to Roland Berger Strategy Consultants, up to 65% of supply chain costs are incurred between the distribution centre and the retail floor.
The Australian Food and Grocery Council’s Efficient Consumer Response Australasia (2011) notes that retail ready packaging supports improved operational efficiencies at store level including faster stocking of shelves, improved stock rotation and ease of product identification leading to better on-shelf availability and increased sales and, most importantly, an enhanced shopping experience.
CHEP has developed two returnable solutions for the retail ready segment, the display pallet and multi-product beverage tray that are gaining momentum across major grocery and general merchandise retailers alike. CHEP’s retail ready solutions are increasingly being rolled into the aisles.
Initially launched for grocery supply chains and merchandising, the plastic display pallets are now also being used to merchandise in big box stores for a variety of products. CHEP Australia Business Development Manager, Frank Vittoria explains that strong efficiencies are gained in both replenishment time and frequency by tackling fast turnover items and transitioning them onto a display pallet format.
For instance, when a display pallet is shopped down, another can be quickly wheeled in from the back of house and popped in place in one movement, eliminating the stress of unpacking, handling and shelving the products while ensuring stock is more readily available to the customer.
Working in harmony with the display pallet, CHEP beverage trays replace aisle shelves and are increasingly being adopted by retailers for their replenishment benefits.
Packaging waste reduction is another driver for the uptake of smart returnable merchandising solutions. The integrity of the display pallet and beverage tray design eliminates the need for secondary packaging. A load can be held in place with a simple pallet strap, producing extremely low rates of packaging waste and making it quick and easy to replenish stock.
CHEP’s retail ready solutions are enabling ‘one-touch’ supply, taking out handling from the equation as products are packed directly from production, then moved through the supply chain onto the shop floor without any further packing or unpacking required.