CHEP, the global leader in pallet and container pooling services has recently signed a five-year contract with British Sugar, the leading supplier of sugar to the UK market. This new business involves the conversion of British Sugar’s dedicated internal yellow pallet pool to CHEP and is worth £800,000 per annum.
British Sugar is part of Associated British Foods (ABF) to which CHEP already supplies 900,000 pallets per year. This new agreement opens up a number of additional opportunities for the UK and international CHEP businesses.
British Sugar believes that switching to CHEP will significantly reduce the administrative burden of its pallet management as it will no longer need to manage its own exchange pool or pay for repair or replacement of assets. With other ABF group companies already benefitting from using CHEP equipment, British Sugar concluded that extending the system made perfect commercial sense.
There are also compelling environmental benefits to be gained from switching to CHEP rather than the alternatives available, as the pooling model ensures pallets circulate continuously through the supply chain compared to returnable white wood or disposable alternatives. With careful maintenance, the life cycle of a CHEP pallet can be some 10 years or more, which reduces the need for new pallets, whilst broken components that are removed during the repair process are recycled or chipped for other uses.
Daniel Walsh, Commercial Director for CHEP UK & Ireland said, "I am delighted to secure this important business with British Sugar. Crucial in winning this contract was our ability to provide a compelling commercial offer which met the customer’s exact specification, supported by high quality account management and customer service."
CHEP blue pallets will be used primarily to distribute British Sugar’s products to domestic manufacturers and also for some international flows to food service, cash & carry and retail clients.