Oman Refreshments Company SAOG (ORC), a beverage bottling company in the Sultanate of Oman and the franchisee of PepsiCo international in that country, has signed a two year deal with pallet and container pooling leader CHEP. The contract is expected to involve more than 10,000 pallets annually, as the beverage provider migrates from white exchange pallets, according to a report at www.arabiansupplychain.com.
“The pallet side of our business has been a significant part of our logistics operations for many years,” says ORC general manager, Youssef Ezzikhe. “Our heavy usage of pallets and their frequent movements across our business locations required a huge annual investment. Buying new pallets, repairing them, plus tracking their movements and accounting for losses shifted our management focus away from our core business operations.”
“To eliminate those aspects, we decided to make the transition to CHEP managed pallets. CHEP has a proven business model in the timely supply of pallets and their tracking. Plus, the conversion gives us the opportunity to realise logistics efficiencies, while achieving a significant reduction in overall pallet costs.”
ORC has been producing and distributing Pepsi products in Oman for nearly 40 years, holding a significant market share in the carbonated soft drink sector. The company offers highly recognized brands such as Pepsi Cola, Diet Pepsi, Mirinda Orange, Mirinda Apple, Mountain Dew, Diet Mountain Dew, Shani, Evervess Soda in addition to Aquafina pure drinking water.
“We completed a Value Chain Study as well as a Cost Benefit Study on ORC – all with a positive outcome – so it is with great pride that we welcome them into the CHEP family of customers,” comments Gavin Keen, CHEP’s general manager, Kingdom of Saudi Arabia. “CHEP has made significant investment in the Gulf Cooperation Council (GCC) region, which includes Oman and other states bordering the Persian Gulf, to provide the market with alternative supply chain solutions. CHEP will service ORC from service centres in Muscat, Oman and Dubai”