06/03/06 CHEP Receives Brazilian Logistics Award

SAO PAULO, Brazil--(BUSINESS WIRE)--March 2, 2006--The Brazilian Logistics Association (ABML) has named CHEP the 2005 winner of the Brazilian Logistics Award for collaboration on the "RFID/EPC Brazilian Case: The Future of Supply Chain". The award, determined in coordination with logistics and supply chain professors from top Brazilian universities, is recognized as the top honor presented by the industry.

The Brazilian Logistics Award, in the category of "Collaboration", was presented to CHEP Brazil General Manager Pedro Moreira and the CHEP Brazil team at the ABML's Annual Award Ceremony held in Sao Paulo in December.

"CHEP and its partners have shown that RFID is up to the task in the retail supply chain. For this, the company certainly deserves our highest honor," said Dr. Hugo Yoshizaki, Ph.D., a leading member of the ABML Awards Judgment Committee.

The award cited a project CHEP Brazil started approximately two years ago with Brazil's top retailer CDB - Pao de Acucar, top manufacturers Procter &Gamble, and Gillette, and the consulting group Accenture to investigate the potential of Radio Frequency Identification (RFID) and the Electronic Product Code (EPC) in the Brazilian marketplace. Nearly 18 months was invested in laying the groundwork for the pilot, which included analyzing the existing commercial and logistics processes, preparing the RFID infrastructure and aligning product information in a database.

In the pilot, RFID-tagged CHEP pallets were used for the movement of products from P&G and Gillette distribution centers (DC) to a CDB - Pao de Acucar facility. CHEP tagged pallets were restricted to the circuit, passing back through the company's service center. Each location was equipped with RFID infrastructure, including a portal through which the pallets passed, enabling the tags to be read and the data recorded into a database.

Web-based software provided to each participant enabled all organizations to share information about product flows in a secure setting. The entire supply chain was visible to each company: flows of CHEP pallets to P&G and Gillette, to the DC, from the DC with product, and to the CDB - Pao de Acucar facility.

The results were very favorable. The processes established and the communication network implemented allowed a higher visibility and accuracy in the supply chain. Controls implemented also allowed better understanding of the benefits, such as higher productivity and a reduction in the loss of pallets.

"This project was only possible because companies were very open and willing to share their experiences and resources in a real collaborative environment. CHEP and all the other participants in the pilot see it as a stepping stone for assessing opportunities and impacts generated by this technology in the Brazilian supply chain," said Pedro Moreira, General Manager, CHEP Brazil.

About CHEP

CHEP is the global leader in pallet and plastic container pooling services serving many of the world's largest companies. The company has more than 7,700 employees in 42 countries. Combining superior technology, over five decades of experience and an asset base of more than 265 million pallets and containers, CHEP handles pallet and container supply chain logistics for customers in the consumer goods, produce, meat, home improvement, beverage, raw materials and automotive industries. With global partners that include Procter & Gamble, SYSCO, Kellogg's, Kraft, Nestle, Ford and GM, CHEP is known for Handling the World's Most Important Products. Everyday. For more information about CHEP, please visit: www.chep.com.