As the Indian automotive industry is taking rapid strides to streamline its supply chain operations, there are some companies like CHEP which has been able to capitalize on this trend. A member of the Australian-based Brambles Group, CHEP supplies a range of wooden pallets, plastic crates, systems and support services to its clients. In India, CHEP brings Total Packaging Management (TPM) solutions to the automotive sector and is working with leading OEMs like Maruti, Hyundai, Tata Motors, M&M, Ashok Leyland, TAFE, Volkswagen, Volvo Eicher, FIAT, New Holland, etc., and their suppliers in harnessing the benefits to their supply chain. Apart from OEMs, CHEP India works very closely with Tier-I suppliers like Shriram Pistons and Rings Ltd., Federal Mogul, India Pistons Ltd., Motherson Sumi, Delphi, Continental, Denso, Bosch, Hella, Bharat Forge, Anand Automotive, among others.
To get a broader picture MOTORINDIA caught up with Mr. DK Rai, Director – Automotive Business, CHEP India Pvt. Ltd. He stated: “CHEP provides solutions based on equipment pooling, which is the shared use of high quality standard pallets, crates and containers by multiple customers in the automotive industry. Pooling is a strategic business option for companies that wish to reduce capital expenditure and improve supply chain operations. These returnable packaging solutions are also environment friendly since they follow the principle of Reuse, Recycle and Reduce. We do not sell products, our scalable solutions are available on ‘pay-as-per-use’ basis. Nearly four years back when I joined this company, plastic crates were not that popular. It was quite a task to educate the industry about the concept of equipment pooling and rental system. What they knew was that they have to dispatch the material in crates which were basically corrugated cardboard cartons or plastic boxes. But they were not aware of the concept of pooling or foldable crates and the inefficiencies in their supply chains. We created awareness in the market for pooling, and now the industry is educated on how it works. As early movers, our equipment pooling solutions are now an industry benchmark in the country. I am very happy to say that the Indian auto industry has embraced this concept. We now look forward to integrating the entire automotive industry with our solutions that will enable all the participants in the pool to derive maximum benefits while also greening the end-to-end in-bound component supply chain.”
It is to be mentioned here that CHEP solutions are based on pooling equipment such as wood pallets, foldable plastic crates and 
foldable large containers. Its services comprise container supply chain logistics, supply chain consulting, total pallet management services and pooling services. Its products can generally be recognised by their blue colour and CHEP logo. CHEP equipment available in the Indian market follow globally defined quality standards. CHEP works closely with the customers to develop optimum solutions for each component based on standard equipment. What changes is only the internal packaging (inserts) designed by the expert team of the company.
Running over 40 service centres across the country, CHEP works in close co-ordination with local logistics players and other service providers to ensure seamless service to their customers. Its centres are present in most of the automotive hubs in the country like Gurgaon, Manesar, Sanand, Chennai, Pune, Bangalore, Hyderabad, etc.
Incidentally, Mr. Rai had a decade-long stint in the automobile industry before joining CHEP India. Having worked with renowned firms like Motherson Sumi and General Motors, he discerned the latent demand for solutions which CHEP wanted to offer. Delineating his thoughts, he mentioned: “We offer outstanding, environmentally friendly logistics solutions to customers to help protect their products as they move through the supply chain, by combining superior technology, decades of experience and an unmatched asset base. Moreover, Brambles’ global reach, financial stability and expertise in providing outsourcing services allow our clients to reduce capital expenditure and overall supply chain costs.”
Talking about its business model, he affirmed: “CHEP service centre issues ready-for-use pallets and containers to FMCG and automotive suppliers (in India), manufacturers and growers for use and movement through the supply chain. Products are loaded onto the CHEP equipment and shipped through the supply chain. At the end of the supply chain, the receiving business unloads the goods and returns the pallets or containers to the nearest CHEP service centre there, CHEP inspects and conditions all returned pallets and containers to ensure they meet quality standards. The equipment is then made ready for re-use. These solutions are backed by robust systems, dedicated resources and a friendly customer service.”
Founded in Australia, Brambles, the parent company of CHEP, has interests in providing supply chain solutions to the aerospace, automotive, chemical, consumer goods, fresh food and manufacturing industries, with operations in nearly 60 countries. In India, CHEP caters to the FMCG, automotive, 3PL and retail industries. In the automotive sector, while the passenger vehicle segment accounts for the majority share, there is also contribution from the CV segment. However, the equations might change as the Sydney-based firm is anticipating some enhanced business opportunities in the CV segment with many global players like Scania, Daimler, Isuzu, MAN, etc., ramping up their operations in the Indian market. Plans are also afoot to enhance the relationship with off-road vehicle manufacturers like JCB, John Deere, Terex Vectra, etc.
Mr. Rai shared: “We are looking at all opportunities to grow, including the two-wheeler segment, some green shoots in the commercial vehicle, the OTR vehicle segment and others. India is predicted to be an important hub for international automotive play, and CHEP is determined to be the de-facto in-bound component handling solutions provider to this sector.”
However, Mr. Rai maintained that there are many challenges, and CHEP is working with not only their customers but also with the industry bodies such as CII, SIAM, ACMA, ECR, ELSC and the media to ensure that the benefits of global processes are known to all.
Sharing his views, Mr. Rai further said: “The entire supply chain sector is evolving, and CHEP as well as industry bodies are driving this evolution. The country lacks standardisation, and there are not many defined standards for the industry to follow. The logistics arm of the Confederation of Indian Industry (CII) is currently working on a project to define the Racking-Trucking-Handling Equipment-Palletizing (RHTP) standards for India. Once defined and adopted, this will be an industry game-changer and act as a catalyst for end-to-end supply chain collaboration.”
With general focus on manufacturing with the bright future predicted for the automotive sector, CHEP India is confident of being an important business for the Brambles Group in the next few years while becoming a strategic partner to the automotive industry.
Mr. Rai signed off by saying: “CHEP, with their customers and partners, are building better supply chains, together!”