We partnered with CHEP to accelerate their long term transformation journey as they reimagine their Northern European pallet network.
Summary
Supporting long term transformation
This is one of many projects we have delivered for CHEP, since establishing our partnership in 2021 to support their multi-year Future Network initiative.
We integrated CHEP’s logistics data into SimPath’s cutting-edge network design platform, while also providing strategic consultancy and insights to reveal a greenfield future network and drive optimisation.
Integration
Modelling complex networks with SimPath
We worked closely with our partners at CHEP to gather, understand and refine their extensive operational data, before integrating it into SimPath and configuring the platform to visualise the network and reflect its unique properties.
The resulting model captured the movements of 156 million pallets across 10,429 locations throughout the Northern European network - reflecting one of the most complex logistics networks in the world.
Key outcomes
- Modelled and optimised a network of 10,429 locations and 156M pallet movements
- Rapid simulation of thousands of network designs, enabling side-by-side comparisons
- Identification of patterns and performance drivers across thousands of optimised networks
- Delivered intuitive visualisations and actionable insights to guide strategic decision making and support long term transformation journey
Network Visualisation
Locations
Optimisation
Exploring the impacts of transformation
SimPath enables supply chain leaders to test proposed changes in a virtual environment, using simulation to reveal optimised network structures for desired transformation.
A major innovation within this greenfield optimisation project was introducing the concept of ‘Next Gen Plants’ - facilities with advanced automation - into SimPath’s models.
Unlike traditional network design tools, SimPath uses AI and advanced simulation techniques to rapidly simulate thousands of optimised networks in parallel. Because of this, SimPath is able to not only recommend the most ‘optimal network’, but also identify patterns behind the highly performant networks generated by the simulation.
Using these performance driver insights, we were able to show CHEP that networks with Next Gen Plants not only justify the cost of implementing the latest automation technology, but consistently perform better - unlocking significant cost savings, while also boosting overall throughput and resilience.
Base Network
Optimised Network with Next Gen Plants
Impact
Reducing costs and unlocking efficiency
Leveraging SimPath’s AI-driven simulations, we provided CHEP with a selection of optimised network structures which revealed real world cost savings ranging from 5-26%, equating to over €30 million annually.
Beyond driving improved efficiency across CHEP’s Northern European pallet network, these optimised structures also reduced pallet damage rates, driving further value for CHEP’s customers.
SimPath’s unique ability to run unconstrained simulations and visualise both centralised and decentralised network structures allowed us to test, compare and recommend several future-ready strategies to CHEP’s senior decision makers.
Guiding Strategy
Turning insight into impact
Delivered via strategic reports and interactive visualisations, we translated SimPath’s advanced simulations into tangible, actionable recommendations to guide decision making.
We also provided expert training and continuous support to CHEP’s users, enabling them to test new scenarios using SimPath’s digital models and simulations.
Going forwards, we will continue to partner with CHEP on their long term network transformation journey, refining the proposed strategies we delivered in line with implementation restraints.
Optimising complex transformation journeys
Through seamless integration and expert consultancy, we helped CHEP to see their network from an entirely new perspective - one that makes unconstrained optimisation, large scale transformation and unparalleled cost savings a reality.
How different would your supply chain network look if you were to design it from scratch today?
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