Primo simplifies its distribution and delivery

Pallets, boxes, containers and crates transport Primo and Hans products around Australia, which, until recently, have been provided by several suppliers. Primo, Australia’s largest producer of ham, bacon and smallgoods, has recently made the switch to CHEP as its sole supplier in order to create a more efficient streamlined process for its distribution and delivery, and reduce costs and administration time.

Rob Ferris, Primo National Pallet Manager, said using many different suppliers became difficult to manage and caused inconsistencies in the system.

“We wanted to use one reliable supplier who we could trust. As well as serving our technical requirements, we knew this would also eliminate lengthy consultation times and multiple invoicing,” Ferris said. “It’s very important to Primo to have a close relationship with our equipment handling supplier. They are one of the most important parts of our business in ensuring adequate supply, efficient delivery services and food safety. Ferris said, in an unpredictable consumer environment where demand fluctuates, it is essential Primo always has a sufficient amount of pallets to transport its product. “A simple pallet shortage could stop production and cost the business thousands of dollars in lost head hours and sales,” Ferris said.

“Common sense decisions by CHEP such as increasing the plastic pallet pool have made our processes so much easier, saving us time and money, while providing reliability, flexibility and responsiveness.”

Controlling pallet movements and correcting any technical issues was also a major focus for Primo.

“As we use an automated distribution centre, if one pallet is detected as faulty, the whole load of pallets is rejected. This is a minor technical issue; however, it can cause lengthy delays for deliveries and cause losses for us and our customers,” said Ferris.

Primo worked with CHEP Sales Team Leader Matt Jager to implement the changes over a two-year period. The results are more efficient delivery processes, simplified supplier relationships, cost-effective supply models, minimal invoicing as well as minimal service failures.