Global leader in reusable packaging solutions explains how the automotive supply chain is responding to supply chain disruption and expensive intercontinental shipping costs
PARIS, Nov. 16, 2022.
The report touches on some of the current socio-economic factors that are impacting automotive supply chains globally, such as the uncertain trajectory in terms of shipping costs, the challenges of chip production as they become an embedded part of vehicle development, and the rising commodity prices. As a leader in circular pallet and container solutions, CHEP examines what counter strategies are currently trending in the supply chain.
The call to rise to the challenge of a net-zero future is louder than ever, with electrification hailed the solution to high transport emissions. However, whilst original equipment manufacturers (OEMs) and battery makers need to find ways to make electric vehicles (EVs) more affordable to the consumer, intercontinental shipping costs have soared. CHEP's report intends to shed light on how supply chain uncertainty is opening the way for innovative solutions in the form of:
- new route options;
- a narrowing gap between spot prices and long-term shipping prices;
- a new wave of nearshoring;
- an uptake in end-to-end supply chain visibility tools;
- transport collaboration, optimizing container space, and eliminating empty transport miles.
"There has never been a better time in the automotive industry to start looking at not only what is sourced and from where - or the routes used - but how you transport. We are excited to be able to share our experience in this new report and spread our circular message of collaboration," says Sean Maguire, EV Program and Strategy Lead at CHEP.
CHEP has been pioneering circularity in the supply chain since its beginnings, leading the way with its 'share-and-reuse' pooling model of pallets and containers that eliminate wasteful one-way packaging. CHEP develops not only pooled packaging solutions but offers clients transport optimization services built on four pillars: plant network optimization, transport orchestrations, multi-modal services, and transport collaboration.
Eliminating waste and eradicating empty transport lanes are both essential components of the Zero Waste Worldprogram spearheaded by CHEP. A collaboration initiative, ZWW further extends this notion of supply chain circularity to help the world's leading companies grow while creating value for society as a whole.
About CHEP
CHEP is one of the world's most sustainable logistics businesses, offering a share-and-reuse model for its 345 million+ pallets, crates and containers and serving the FMCG, fresh produce, beverage, retail, automotive and general manufacturing industries. Employing 11,500 people, CHEP is part of the Brambles Group and operates in approximately 60 countries.
www.chep.com¦ www.brambles.com
