Pallet Relocation: CHEP Collaboration with Iceland (Page 2)

Continued from Page 1.

Iceland receives an improved level of service as CHEP provides the retailer a dedicated drop trailer that allows it to load used pallets at its leisure. This ensures the trailer can always be fully loaded before its departure. Previously, the local transporter was not able to provide this flexible service, restricting Iceland to a specific loading time of just 60 minutes.

The initiative helps rebalance CHEP’s pallet pool from the UK to Continental Europe. Every year, CHEP receives approximately 10 million more B1210A standard UK pallets from Continental Europe than are shipped in the opposite direction. CHEP must therefore rebalance its pool by moving this surplus stock back to Continental Europe.

CHEP UK & Ireland Logistics Director, Eamonn Casey, said: “This latest initiative with Iceland is just one of a number of collaborations we are involved with. In all, some 20% of our pallets being returned to Continental Europe now go by rail. This development brings key benefits to the business. These include a reduction in our dependence on road haulage which minimises the impact of fuel price rises on our budgets as well as bringing a saving of over 3,500 tons of CO2 in 2010.”

Iceland Supply Chain Director, John Mackie, said: “We view collaborations like this one with CHEP to be fundamental to our business moving forward. The benefits are clear for all to see, both from an economic perspective, but perhaps more importantly from an environmental perspective. Our business has a responsibility to become more sustainable and I’m thoroughly looking forward to developing this initiative with CHEP further.”

Both CHEP and Iceland see ongoing value in multimodal transportation. Specifically, CHEP continues to invest in a network of supply chain partners with which it can collaborate on such initiatives. Mr Casey said: “We now have six European rail flows operating and plan to add further services to Seville (Spain), Perpignan (France) and Bari (Italy) in the near future. Our aim is to ensure CHEP remains at the heart of intermodal developments across Europe and is being seen as a leading green brand providing the very best environmental supply chain solutions.”

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