Chep, through the FPC, has issued clarification of information first released on July 1, regarding the removal of trade issues delivered by Chep.
Here is the advice in full:
The Exchange Service is the lowest cost service available to Chep Customers. This service reduces Chep’s cost to serve by removing the need for collection and return to the Chep Service Centre, handling, inspection and reconditioning. This allows Chep to provide the lowest possible trip fee to the customer.
“Users of this service are obliged to collect empty pallets at time of delivery themselves or via their transporter. If empty pallets are not available at time of delivery - or if the driver makes this request - a PCV is issued against which pallets can subsequently be redeemed.
“As part of the Fresh Start initiative, where empty pallets were not available at time of delivery, Chep initially offered to assist the transporters by taking the PCV’s, recording outstanding balances and allowing the transporter to collect in bulk from Regional Distribution Centre’s against these balances. Due to a lack of control and increasing pallet losses, Chep was forced to remove this service and, as an interim measure, replaced it by delivering trade issues on CHEP transport. Customer pricing was never changed to reflect the additional transport cost incurred by Chep.
“Consequently Chep cannot continue to incur the cost of providing this service. Customers andt transporters must revert to the standard Exchange Service.”
Options and Price Impact
“PCV’s can be transferred off your account by sending them to Chep at a charge of £1.45 per pallet.
“If these pallets need to be replaced, an issue can be taken from a Chep Service Centre at a charge of 75p per pallet.
“Incurring such transfer and issue costs will result in significantly higher trip fee than would be expected under a functioning Exchange system.”
Roles and Responsibilities
“It is the customer’s responsibility to ensure that an effective system is maintained for managing pallet balances with the transporter. These balances should be monitored on a regular basis to ensure that the system in fully under control.
“All pallets on the Customers hiring account remain the responsibility of the Customer at all times. If the transporter does not return pallets or PCV’s, the Customer will incur unnecessary daily hire charges. Also, should a discrepancy be identified upon audit, Lost Equipment Charges will apply.
“Chep will endeavour to ensure the smooth running of the Exchange Service at all times and continues to work with Transporters with this aim in mind. However, we cannot intervene in contractual difficulties between our customers and their suppliers arising as a result of non-exchange.”
For further information, contact your Chep account manager or, alternatively, FPC.
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