“A strategic priority is digital transformation to improve our internal efficiencies”

CHEP Romania posted double-digit year on year growth in 2021, maintaining a top position among the European CHEP markets.

“It is a very good result considering that pallet pooling is no longer a new service niche in Romania, as a decade ago, yet our network continues to expand steadily,” Gabriel Ivan, Country General Manager Romania & Bulgaria, CHEP told The Diplomat-Bucharest.

“We made significant investments in digitization to reshape our business and reinvent pooling for tomorrow’s supply chain. A strategic priority is digital transformation to improve our internal efficiencies and making it easier for customers to do business with us.”

COMMITMENT TO PERFORMANCE | BUSINESS EVOLUTION, PROJECTS, PERFORMANCE, FIGURES

“Since the pandemic outburst, we increased our dynamics as more manufacturers and distributors turned to pallet pooling. The trend maintained this year, as the circular system based on the blue pallet and the technology behind it guarantee to keep the supply chain moving efficiently despite any disruptions.

The number of companies that have switched to the circular system has increased from year to year by 50% since the beginning of the pandemic in Romania. Before the COVID-19 crisis, we were working with 200 FMCG companies. We currently provide pallet pooling services to an ecosystem of over 400 manufacturers and distributors.

We posted double-digit year on year growth in 2021, maintaining a top position among the European CHEP markets. It is a very good result considering that pallet pooling is no longer a new service niche in Romania, as a decade ago, yet our network continues to expand steadily.”

STRATEGY & VISION | RETHINK STRATEGY & PRIORITIES

“On a niche that grows steadily, the overarching imperative was to focus on the sharpest edge of our business and to maintain a sustainable growth when the market demand exceeded our internal forecast.

Secondly, the pandemic has proved that the mental and physical well-being of our  people is a major priority. The far most important capability is human capability. Technology advancements come after you have the right human workforce. The top management invested efforts to keep the team engaged and motivated, encouraged more flexibility and better bonds between the management and the rest of the team.

We aim to maintain a double-digit growth by exploiting our distinctive advantages, enhancing our operational efficiency, improving our product and service offer as well as by investing in digitisation. An action in our 2022 internal optimization plan is the opening of the sixth service center to better cover the national supply chain.”

PEOPLE & COMMUNITY | FOCUS ON SAFETY, SOCIAL APPROACH, LEVERAGE THE POWER OF COMMUNITY

“We have a long-term social commitment to alleviate food waste and hunger worldwide through CHEP and Brambles. We participate to this mission as one of the first strategic partners of the Food Bank in Romania, which is part of the Romanian Federation of Food Banks. It is a collaborative social project aimed to tackle an issue with huge economic and environmental costs. According to the Ministry of Agriculture and Rural Development, Romanian consumers are wasting 2.55 million tons of fruits, vegetables and home-cooked meals each year. Food therefore accounts for a significant share of solid waste to Romanian landfills. Many of our business partners in Retail and FMCG support redirecting good food and other products to tens of thousands of beneficiaries every year. Any company in the commercial sectors is invited to join.”

KEEN ON GREEN |SUSTAINABLE, GREENER, COMMUNITY & ENVIRONMENTALLY-FOCUS

“First, it is worth to mention our ambitious 2021-2025 Sustainability strategy that aims to pioneer regenerative supply chains, whilst continuing to lead the transition to circular economy. In 2021, we’ve reached the carbon neutral level within our own operations (scope 1 and 2) and we are currently advocating for our customers and suppliers to become carbon neutral in their operations, too. We plan to educate and impact one million people to become circular economy change makers by 2025 worldwide and we are currently working to expand our collaboration projects to more customers on the local and global markets to reach this new regenerative ambition—going from ‘less bad’ to ‘neutral’ and ultimately to ‘net positive’.”

DIGITAL DNA | GRASPING TECH, DIGITAL INNOVATION, CUSTOMER -DRIVEN, BUILDING NEW BRIDGES

“We made significant investments in digitization to reshape our business and reinvent pooling for tomorrow’s supply chain. A strategic priority is digital transformation to improve our internal efficiencies and making it easier for customers to do business with us.

For instance, we will use Big data and digital insights to increase visibility of the supply chain, reduce inefficiencies and bottlenecks and unlock new sources of value for customers.

We tested and will implement pallet digitization and advanced analytics to provide visibility into our asset pools and networks and we’ll use data-driven insights to create new customer solutions focused on improving business performance and sustainability.”

What trends do you anticipate for 2022?

“Companies will continue to improve their digital DNA. During the pandemic, consumers have moved dramatically toward online channels, and companies and industries have responded in turn. A CHEP survey among top managers of manufacturers and retailers pointed out, some years ago, that the first technologies to be implemented in Romania will be the Internet of Things and Big data. Data-driven decision making is paramount in any sector, indeed. CHEP is already using the most advanced technologies in Spain and Germany and proved that technology pays off in terms of in-store design. Retailers are already adapting to the consumer behaviour by offering their customers new compensating digital experiences, using the augmented reality. We are already testing these solutions with our Romanian clients and partners.
Another megatrend is collaboration. According to the 2021 CEO study of the Institute for Business Value, outperformers stand out in their recognition that the partnerships they do engage in are more important—and more valuable—than ever. By tapping into ecosystems that amplify their effectiveness and access to innovative products, services and digital solutions organisations will extend their dominance over competitors that are slower at adopting collaboration.”

2021 IN 3 KEY WORDS OR MORE

“People-oriented management, internal optimisation, new collaboration levels in the supply chain”

2022 IN 3 KEY WORDS OR MORE

“Leading the transition to the circular economy in the Romanian Retail and FMCG sectors, pioneering regenerative supply chains, identifying new sources of internal efficiency to lower the impact of the upcoming price increases over our clients.”