LPR, one of the UK's leading pallet pool operators, has signed a three year deal with cereals company, Kellogg's. Worth more than £7 million over the three years, this new contract will see LPR providing pallets at the company's Trafford Park plant, Manchester.
The contract builds upon LPR's existing relationship with Kellogg's where it has been providing pallets that meet stringent quality standards to its factory in Wrexham. Famous brands such as Coco Pops, Cornflakes and Special K are now being delivered to supermarket shelves all over the country on LPR's distinctive red pallets using the company's one-way-trip model.
Colin Ridler, supply director at Kellogg's, says: “The one-way-trip model significantly reduces the administrational burden on ourselves, allowing us to focus on getting cereal to the customer. However, for us the most important element of LPR's offering is its service flexibility. At each stage in our business relationship LPR has listened to our service requirements and has sought to meet our needs.”
Other parties are also set to benefit from the close relationship that already exists between LPR and Kellogg's. Supply chain management company, TDG, which provides transport and warehousing services to both organisations will bring together deliveries and collections to help reduce empty running. Working together, TDG can optimise its vehicle usage after delivering its customers' products into major multiple RDCs to back haul full loads of empty LPR pallets for refurbishment.
To service Kellogg's, LPR has established a pallet facility at the “Merlin” distribution centre which is just half a mile away from the Kellogg's factory. This facility, which will run 24 /7 operations on Kellogg's behalf, is helping to reduce fuel consumption and carbon emissions.
Managing director of LPR UK, Jane Gorick, adds: “We're delighted to be continuing our long-term relationship with Kellogg's. This is an excellent example of collaboration across the supply chain, which is a key way to further save costs, without compromising on service.”
To find out more about LPR, visit www.lpr.eu