So, the only two pallet alternatives to Brambles' CHEP pallets are PECO Pallet and iGPS (Intelligent Global Pooling Systems) which are both privately owned.
Might this be a temporary glitch which will get sorted?
Shares in the CHEP pallet operator collapsed after the company slashed its profit growth guidance from 8–11 per cent to just 3–5 per cent for the year ending June after a breakdown in its US pallet repair network.
Two key subcontractors unexpectedly walked away mid-contract, leaving the company scrambling to move pallets across the country at expensive spot freight rates and hire replacement labour at a premium. The network crunch hit just as customer demand was surging.
Brambles expects the US repair constraints to cost around $US60m in earnings this financial year – $US40m in extra supply chain costs and $US20m in lost sales – and has bought roughly two million new pallets to plug the gap.
Macquarie saw it as a “systemic challenge" – around 85% of Brambles’ US network relies on subcontractors now struggling with labour costs and availability.
So, the only two pallet alternatives to Brambles' CHEP pallets are PECO Pallet and iGPS (Intelligent Global Pooling Systems) which are both privately owned.
Might this be a temporary glitch which will get sorted?
the ROA of the number 2 is much lower... but still high enough to be a family business.
Saw this in The Australian today:
Shares in the CHEP pallet operator collapsed after the company slashed its profit growth guidance from 8–11 per cent to just 3–5 per cent for the year ending June after a breakdown in its US pallet repair network.
Two key subcontractors unexpectedly walked away mid-contract, leaving the company scrambling to move pallets across the country at expensive spot freight rates and hire replacement labour at a premium. The network crunch hit just as customer demand was surging.
Brambles expects the US repair constraints to cost around $US60m in earnings this financial year – $US40m in extra supply chain costs and $US20m in lost sales – and has bought roughly two million new pallets to plug the gap.
Macquarie saw it as a “systemic challenge" – around 85% of Brambles’ US network relies on subcontractors now struggling with labour costs and availability.
A wooden pallet company with some pallet counting issues in its past. And Graham 'Chipchase' is the CEO? Next level nominative determinism.
It is a fabulous example of nominative determinism. But I did not feel the need to point that out.
What is the narrative vs what is the substance..... management find mistruths difficult to wash away when the evidence has coupling at the layers.