In a landmark deal, CHEP enters the UK building and construction sector.
CHEP has broken new ground in the UK building products sector by inking a five-year contract with Travis Perkins plc, one of the largest suppliers to that industry in the UK. CHEP, the world’s leading provider of pallet and container pooling solutions, says the move will significantly help modernise the supply chain of the construction industry in the UK.
This contract with Travis Perkins plc denotes CHEP’s first win in the construction sector, signifying a strategic step forward in terms of leveraging the advantages of a much higher quality pallet. than single-use white pallets normally used in the industry.
“We are delighted to be working with CHEP going forward. This relationship is a great match in terms of improving the efficiency and sustainability of our supply chain.” says Brian Huckle, supply chain development director for the plumbing and heating division of Travis Perkins plc, “The use of reusable pallets will also help us to reduce our carbon footprint”.
“As market leaders in our respective fields, both Travis Perkins plc and CHEP are committed to finding new ways to work more efficiently, which will ultimately help to modernize the supply chain to a long-established industry.”
The new deal is comprehensive in nature, with CHEP providing pallet management services in every product category across entire Travis Perkins plc operations. The service provision includes management of all empty pallets throughout the Travis Perkins supply chain, including CHEP pallets as well as white pallets and bespoke pallets.
As one facet of the arrangement, CHEP will provide an on-site category manager at Travis Perkins plc primary distribution hubs at Brackmills, Northampton in the East Midlands of England and Omega North, Warrington in Cheshire, to manage the partnership, supporting the change management process as well as implementation of asset controls protocols.
CHEP’s industry standard B1210A pallets (1200x1000mm) will be utilized for deliveries from Travis Perkins plc’s distribution centres to more than 1900 outlets nationwide.
“Until now, the construction sector has predominantly been served by high cost, single-use white pallets, which ultimately end up in landfill as wood waste.,” offers Rod Francis, CHEP vice president & country general manager for UK & Ireland: “The introduction of CHEP pallets and our supply chain expertise is a real step forward for the sector as a whole which can now enjoy superior quality pallets as well as the environmental benefits associated with them which will reduce everyone’s carbon footprint.”
The parties anticipate that the joint business plan will evolve significantly during the five-year life of the agreement, with several other supply chain initiatives under investigation.