Vantage ISSUE 13. In this issue. CHEP s unique view into supply chain logistics

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1 Vantage CHEP s unique view into supply chain logistics ISSUE 13 In this issue Can you use the next generation display pallet? We designed our next generation FMCG Retail Display Pallet in consultation with manufacturers and retailers. It's engineered to fit the majority of manual handling equipment and can be beam racked - can you use it in your supply chain? Hate surprises on your invoice? Then you'll love this... Did you know we've introduced a new alert to give you advanced warning about corrections and reversals on your account? It means no more surprises when you receive your invoice. How is Cerebos growing its business? Find out how sauce, spice and coffee manufacturer, Cerebos, approached a recent upgrade of its 1971-built Sydney factory. Coming clean on sustainability In this Sustainability Report Card we come clean on how we are rated on water use, timber sourcing, waste generation and greenhouse gas emissions in Feedback on Vantage Service Centre details CHEP Privacy Policy Unsubscribe

2 Now hiring: CHEP s next generation FMCG Retail Display Pallet CHEP Australia s next generation small footprint retail ready display pallet is now in market and delivering a new level of efficiencies and benefits Developed in consultation with manufacturers and retailers, the new FMCG Retail Display Pallet represents a step change for the industry and builds on the success of CHEP s first generation retail display pallet pool. It has been engineered to fit the majority of manual handling equipment used in Australian FMCG supply chains and its advanced features include the ability to beam rack where other retail display pallets cannot. Business Development Manager Frank Vittoria says, We put the pallet through rigorous testing to achieve a maximum fork entry width of 735mm on the same footprint. This design achievement means most manufacturers and retailers can integrate the display pallet into their operations without the need for any capital investment. We put the pallet through rigorous testing to achieve a maximum fork entry width of 735mm on the same footprint. This design achievement means most manufacturers and retailers can integrate the display pallet into their operations without the need for any capital investment. Frank Vittoria Business Development Manager, CHEP During the design phase, the team looked at ways to incorporate the new display pallet into existing racking infrastructure. The result was the development of a racking cradle that enables display pallets to be racked and is also compatible with CHEP s timber pallets giving warehouse managers the convenience and flexibility of racking the new The new FMCG Retail Display Pallet configured on timber pallets display pallet or timber pallet within the same infrastructure. Frank Vittoria says, We conducted tests in accordance with ISO standards to ensure that the FMCG Retail Display Pallet could be beam racked under load at elevated temperatures, and the results were positive. The FMCG Retail Display Pallet also boasts anti-slip technology for increased safety. The top deck features additional rubber grommets to minimise load movement, resulting in better load containment, and the fork lift entry points have been fitted with rubber grommets to ensure the display pallet doesn t slip off fork tines while in transit. The FMCG Retail Display Pallet offers all of the benefits of its predecessor: Reduced risk of product damage through one-touch movement from manufacturer to retail floor Outstanding display properties and ease of replenishment Compatible with a range of secondary shelf ready packaging Modular to CHEP s beverage trays and reusable plastic crates Compatible with existing transport infrastructure, fitting three pallets across a standard truck tray when loaded landscape and four pallets when loaded portrait Immune to contamination from bacteria and pests Non-porous surface No nails or splinters Lightweight at only 8.3kg Specifications Dimensions mm (+/- 5mm) Length: 775 Width: 590 Height: 160 Capacity and weight (+/- 0.5kg) Maximum load weight Tare weight 500kg 8.3kg For more information please contact CHEP customer service on 13 CHEP ( ) or speak to a CHEP account manager.

3 alert makes equipment control easier In March 2014 CHEP Australia introduced a new alert to advise customers of correction or reversal activity on their accounts. Not only is investigating and confirming corrections and reversals time consuming, if not done quickly, unresolved transactions can lead to disputes between trading partners. In March 2014 CHEP Australia introduced a new alert to advise customers of correction or reversal activity on their accounts. CHEP s Customer Experience Manager ANZ Mark Harvey says, Through the Customer Forum process, and on the back of a project with Glen Cameron Group which focused on reducing corrections between trading partners, CHEP developed this automatic daily alert which advises customers of corrections and reversals on their accounts. As a result of this new functionality, I am able to action any correction/ rejections [sic] raised against my account prior to invoice. I find this function a very good tool that, if utilised correctly, has the potential to open up lines of communication with trading partners, which previously did not exist, and supports healthier pallet management. Heather Daly Pallet Controller, PPG Industries For those signed up to receive the alerts, this means no more surprises when you receive your invoice. Corrections and reversals will be brought to your attention in a timely way and can be dealt with before the transaction hits an invoice. Those who transact using manual dockets will benefit most, because, when using a manual system, corrections and reversals are not visible until an invoice arrives. Additionally, anyone who doesn t log onto Portfolio Plus every day is going to have greater visibility of these transactions impacting their account. Nobody wants to get a shock from their invoice, Mark says. The alert brings greater transparency to the trading partner relationship and will help increase efficiencies in managing your CHEP account. The new alert has been well-received by customers. I found that the alert was beneficial in the fact if a trading partner rejects/amends a transfer early into the new month, we are notified almost immediately instead of waiting until the invoice comes in and you have to try to remember what happened a few weeks back. Russell Cotterill National Purchasing & Logistics Manager Lesaffre Australia Pacific Pallet Controller with PPG Industries, Heather Daly has tested the software and says, As a result of this new functionality, I am able to action any correction/rejections [sic] raised against my account prior to invoice. I find this function a very good tool that, if utilised correctly, has the potential to open up lines of communication with trading partners, which previously did not exist, and supports healthier pallet management. Transactions may be corrected or reversed by trading partners for a variety of reasons, including queries on dates, equipment type or quantity. The Equipment Control Etiquette best practice paper, developed by CHEP customers for the CHEP pooling community, outlines that best practice is to advise a trading partner when a correction or reversal has been applied to a transaction. Not informing a trading partner of a correction or reversal can quickly escalate to a dispute, something everyone would prefer to avoid. Lesaffre Australia Pacific National Purchasing & Logistics Manager, Russell Cotterill says, I found that the alert was beneficial in the fact if a trading partner rejects/amends a transfer early into the new month, we are notified almost immediately instead of waiting until the invoice comes in and you have to try to remember what happened a few weeks back. For more information visit CHEPpedia.chep.com or to register for the alerts please contact customer service on 13 CHEP ( ).

4 Cerebos journey of continuous improvement Sauce, spice and coffee manufacturer, Cerebos, challenged CHEP to be part of their process of continuous improvement as they upgrade their Sydney factory. Cerebos General Manager for the ANZ Supply Chain, Joseph Dalo is a man with a vision and the ability to bring others along on the journey of continuous improvement and innovation; so much so that when planning a significant upgrade to the 1971-built Sydney factory, he extended the innovation challenge to CHEP. Part of our relationship is to talk about continuous improvement. I asked What can we do next? so the CHEP team came in and did an audit. I gave the guys a fairly free range and said What are the opportunities for us?. One clear opportunity to improve throughput was to upgrade the existing stretch wrap machine, which wasn t meeting existing requirements. I look at a relationship in terms of value add. Everyone can do price it s what you can do next, it s about the value add. This CHEPstretch system is a classic example of that. Joseph Dalo General Manager ANZ Supply Chain, Cerebos It was like Pitt Street, Joseph jokes, with everyone lining up for the wrapper. The new Lantech SLA4000 is the highest speed wrapper on the market, with a capacity of 120 pallets per hour. It integrates seamlessly into the Cerebos operations, and will ultimately facilitate 17 lines feeding into the single wrapper without skipping a beat. It s part of our overall strategy, Joseph explains. Pallets will come down the line and go straight through the wrapper. It had to be quick enough to make sure it could keep pulling the pallets through. We have a stretch wrapper now that can handle our capacity. As soon as the pallets are manufactured they re wrapped, put away and the job is done. CHEP s Hifa Flexman and Cerebos Joseph Dalo check data on the new CHEPStretch machine The new arrangement will also mean fewer forklift movements on the factory floor, which in turn means a safer workplace. Another benefit of the new wrapper is that it s smart. It integrates with Cerebos existing warehouse management software, automatically generates labels and applies them to the exterior of the wrapped pallet load. The result is an increase in inventory accuracy, a reduction in damage and a reduction in miss-picks through mislabelling. There s no capital outlay, and it s an integrated solution. The service agreement means it s fully maintained because it includes servicing and film. It helps us because we don t have to worry about it you do!. Joseph Dalo General Manager ANZ Supply Chain, Cerebos The new wrapper is also more energy efficient than its predecessors which means savings on energy costs, and from an environmental point of view, less wrap means fewer carbon emissions. Cerebos is a signatory to the Australian Packaging Covenant and we ve committed to reducing our packaging each year - the wrapper enables us to reduce packaging, Joseph says. There were clearly a range of benefits to be gained from the new stretch wrapper, but why choose to work with CHEP? Why not another provider or an outright purchase? I look at a relationship in terms of value add. Everyone can do price it s what you can do next, it s about the value add. This stretch wrapper is a classic example of that. There s no capital outlay, and it s an integrated solution. The service agreement means it s fully maintained because it includes servicing and film. It helps us because we don t have to worry about it you do! For more information or to arrange a CHEPstretch trial, please contact CHEP customer service on 13 CHEP ( ) or speak to your CHEP account manager.

5 Target: Total emissions 18,860t CO 2 -e by 2015 GREENHOUSE GAS EMISSIONS OVER TIME (CO2-E) SOURCE OF GREENHOUSE GAS EMISSIONS (T CO 2 -E) On-site Diesel 13 Electricity 17,181 On-site LPG 2, Total 23,575t SERVICE CENTRE WASTE 2011 Total 22,162t 2012 Total 21,410t 2013Total 22,737t FY11-2,411t FY12-2,289t FY13-2,275t Landfill Natural Gas 1,797 Fleet Fuel 944 Target: Year on year improvements in Service Centre recycling rates FY11-1,505t FY12-1,470t FY13-10,906t* FY11-38% FY12-31% FY13-83%* Recycling Diversion CHEP IN THE COMMUNITY Target: Year on year improvements in water efficiencies WATER USAGE Foodbank $703,000 in kind 144M Litres Local charities $53,000 TIMBER SOURCING 91M Litres Target: Chain of Custody certification for lumber purchased for CHEP pallets by 2015 % lumber from certified sources 88% Global 100% Australia Second Bite $24,000 in kind The Smith Family $20,000 Invested in our community * Refers to Financial Year ending