This paper is part of a series designed to provide an industry perspective of best practice to help standardise and streamline the transactional flow for pooled equipment and improve operational efficiencies and benefits of equipment pooling for the supply chain.

The paper outlines best practice recommendations in the use of pooled equipment reference numbers and proof of delivery (POD) and practical steps towards building best practice processes in your organisation.

The following areas are covered:• Overview of the current environment,• Best practice recommendations for reference numbers and proof of

delivery, • Steps to improving pooled equipment management in your business and

working towards best practice.

Contributors:Developed by CHEP in collaboration with CHEP customers to help drive best practice in the Australian pooling community.

CHEP values the contribution of our customers in developing these recommendations.

Best practice pooled equipment management:Reference Numbers and Proof of Delivery (POD)

The pooling community currently uses various unique references to link pooled equipment documentation with their own documentation and trading partner documentation to facilitate the control and reconciliation of pooled equipment flows. In addition, different parties in the pooling community have different definitions and requirements relating to ‘Proof of Delivery’ (POD) for pooled equipment movements.

CURRENT ENVIRONMENT

COMMON PAINS AND ISSUES EXPERIENCED

• Variation of practices betweentrading partners in what is usedas reference numbers impactsthe awareness, understandingand correct implementation ofpooled equipment transfers.

• Administrative complexity isincurred due to inconsistency incompleting dockets, includingmissing signatures, incorrectreferencing and altered dockets.

• Lack of clarity as to whatconstitutes an acceptablePOD adds complexity tothe management of pooledequipment.

Best practice pooled equipment management: Reference Numbers and Proof of Delivery (POD)

COMMON GAINS AND OPPORTUNITY AREAS

• Consistency in referencenumber usage increasesefficiency and simplifiesadministration of pooledequipment through the supplychain.

• Increased standardisation buildssimpler practices and processesthat are better understoodand more easily managed andapplied.

• Clarity in what constitutes anacceptable POD simplifiesprocesses and reduces risks.

Minimum of two copies of transfer / exchange docket to be provided to the retail customer. One copy is retained by the site, the other is given back to the driver.

Proof of Delivery for Pooled EquipmentPooled equipment docket (transfer or exchange), including receiver signature, printed name of receiver, actual date of receipt, registration number of delivery vehicle.

Reference Numbers for Pooled Equipment DocketsPurchase Order Number of Receiver and Sending Account Reference (Consignment Note number or Sales Order number), refer to table on page four.

1. INBOUND MOVEMENTS OF POOLED EQUIPMENT INTO RETAIL

Key recommendations for best practice in the reference numbers and proof of delivery

Minimum of two copies of transfer / exchange docket to be provided to the carrier / 3PL. One copy is retained by the site, the other is given back to the sender.

Proof of Delivery for Pooled EquipmentPooled equipment docket (transfer or exchange), including receiver stamp, signed by receiver, printed name of receiver, actual date of receipt, registration number of delivery vehicle, OR

Consignment Note incorporating pooled equipment type and quantity, receiver stamp, signed by receiver, printed name of receiver, actual date of receipt, registration number of delivery vehicle.

Reference Numbers for Pooled Equipment DocketsConsignment Note number or Sending Account Sales Order number and Purchase Order number for receiver.

2. INBOUND MOVEMENTS OF POOLED EQUIPMENT INTO CARRIERAND 3PL

Minimum of three copies of transfer / exchange docket to be provided to the carrier / 3PL. One copy is retained by the transporter, one is provided to the retailer and the other is given back to the sender.

Proof of Delivery for Pooled EquipmentPooled equipment docket (transfer or exchange), including receiver signature, printed name of receiver, actual date of receipt, registration number of delivery vehicle, OR

Consignment note incorporating pooled equipment type and quantity, signed by receiver, printed name of receiver, actual date of receipt, registration number of delivery vehicle.

Reference Numbers for Pooled Equipment DocketsConsignment Note number or Sending Account Sales Order number and Purchase Order number for receiver.

3. OUTBOUND MOVEMENTS OF POOLED EQUIPMENT FROMMANUFACTURER / SUPPLIER / VENDOR

Key recommendations for best practice in the reference numbers and proof of delivery

The carrier is responsible for providing the sending account (Manufacturer / Supplier / Vendor) with access to the pooled equipment POD.

These agreements should be readily accessible to trading partners and supersede the above best practice recommendations where there are any differences.

6. EQUIPMENT CONTROL ETIQUETTE

4. TRANSFER OF POOLED EQUIPMENT DIRECT FROM MANUFACTURER /SUPPLIER / VENDOR TO RETAIL

5. COMMERCIAL / TRADING AGREEMENTS

Recommendations on how to follow best practice in relation to any pooled equipment reference number and/or pooled equipment Proof of Delivery queries between trading partners are contained in the ‘Best Practice Recommendations for Equipment Control Etiquette’ paper. Available on CHEPedia.chep.com.

GROCERY WAREHOUSE - NATIONAL TRANSFER MATRIX

Grocery Warehouse

Reference required on Transfer Docket

Date of Transfer

Delayed Days (Automatic EDO Rule)

Equipment PTASender Create Docket

Receiver Declares

Coles

Purchase Order NumberIf there are multiple PO numbers for a transfer docket, then a minimum of two PO numbers need to be captured on the transfer docket

Date of receipt at Grocery Warehouse (Booking in date)

33 (Ambient Liquor & Chilled)

Pallet

No Yes Yes7 (Produce) Pallet

30 Multi Bev Tray

30 D Pallet

7 Produce Bins

ALDI

Purchase Order NumberIf there are multiple PO numbers for a transfer docket, then a minimum of two PO numbers need to be captured on the transfer docket

Date of receipt at Grocery Warehouse (Booking in date)

28 Pallet

No Yes

14 (Produce) or 28 (Ambient) D Pallet

7 Swing Bar & Gen 1 or Gen 3 Crate

24 Multi Bev Tray

Woolworths

Purchase Order NumberIf there are multiple PO numbers for a transfer docket, then a minimum of two PO numbers need to be captured on the transfer docket

Date of receipt at Grocery Warehouse (Booking in date)

15 (Chilled) Pallet

No Yes No

30 (Ambient Liquor & Chilled)

Pallet

7 (Produce) Pallet

30 Multi Bev Tray

30 D Pallet

Costco

Purchase Order NumberIf there are multiple PO numbers for a transfer docket, then a minimum of two PO numbers need to be captured on the transfer docket

Date of receipt at Grocery Warehouse (Booking in date)

30 Pallet

No Yes No

30 Plastic Pallet

Metcash Reference number as per PTA* As per PTA*

45 PalletYes No No

45 D Pallet

Big W Reference number as per PTA As per PTA 30 (Manual

EDO) Pallet Yes No No

No

*Please note: Metcash removed PTA at Huntingwood NSW DC with the Pallet Transfer Process Change from 11/12/2017.

At industry level:• CHEP continues to collaborate with Industry groups and customers to

promote best practice process and behaviour.

At an organisational level: • Actively promote and share the best practice recommendations with your

trading partners in the pooling community.• Develop processes and guidelines to build a good equipment control

culture in your organisation.• Ensure you and your team are aware of applicable trading rules. Ask your

trading partners for these or visit CHEPedia.chep.com for links to trading partner information.

• Implement processes to help work towards best practice KPIs for transfer and exchange management, and hire balance monitoring.

• It is recommended to use electronic systems such as myCHEP to manage pooled equipment to simplify processes and reduce the need for separate dockets and reference numbers.

• Conduct regular stocktake and reconciliation reports – CHEP recommends undertaking these on a monthly basis.

• Investigate any significant change in equipment variance and identify prompt actions to resolve this.

• Train your staff regularly on equipment management and control processes.

• Visit CHEPedia.chep.com for tools and recommendations on best practice process and procedures management, team responsibilities and KPIs and for convenient eLearning modules on equipment management and control.

At a site level:• Conduct a Process Review and Gap Audit, and put in place an action plan

to close the gaps. Talk to your CHEP Account Manager for help or furtherinformation.

The steps shown here are valid for small to large organisations, the level of detail will vary depending on the issues and opportunities involved.

STEPS TO IMPROVING EQUIPMENT MANAGEMENT AND BUILDING BEST PRACTICE PROCESSES IN YOUR ORGANISATION

Best practice pooled equipment management: Reference numbers and proof of delivery

For advice and assistance in undertaking the above steps ask your CHEP Account Manager or call us on 13 CHEP (13 2437).