Case Study

GKN Chep - 33% rejection rate cut to 3%

The Client

GKN Chep provides wooden pallets for rental, which are used to transport fast moving consumer goods from manufacturers to distributors and then onto retail outlets to enable consumer goods to be transported throughout the country. Pallets are supplied under a rental agreement and are passed between many users before being returned to one of a number of GKN depots for inspection, repair and re-use. GKN depots for inspection, repair and re-use.

The Brief

To improve upon the 33% rejection rate of repaired re-usable wooden pallets used throughout the UK.

 Our Achievements 

• Reduction of rejects from 33% to 3% in under 6 months which led to an increase in customer satisfaction
• Cost per pallet refurbishment reduced by 8%
• After a short period the company were able to increase their rental costs to reflect the marker rate
• This work practice was rolled out across all of GKN Chep’s other collection and repair centres and other depot’s showed similar levels of improved rejection rates.