Frozen food retailer Iceland has signed a new three-year commercial agreement in the UK with CHEP, the provider of pallet and container pooling solutions. Iceland expects the deal to deliver significant supply chain efficiencies in both its UK and international operations.
Central to the deal will be CHEP’s supply of around 100,000 of its industry standard B1210A pallets (1200x1000mm) per year to support Iceland’s container devanning operation at its four main distribution centre facilities located at Livingston (West Lothian, Scotland), Enfield (North London), Swindon (Wiltshire) and Warrington (Cheshire) as well as its international business.
The strength of the existing relationship with CHEP is an important factor underpinning the new agreement, acknowledged by Iceland’s Contracts & Commercial Manager, Dave Rowlands: “CHEP understands both our business model and our supply chain very well. We’re delighted to cement our relationship for another three years, and look forward to exploring other initiatives that will help improve the efficiency of our supply chain.”
Iceland will be leveraging CHEP’s expertise to continue strong asset controls at its distribution sites. In addition, Iceland will continue to allow CHEP’s supply chain experts access to these sites to support its asset management initiatives at a local level.
Further strategic opportunities to work together are expected to arise over the course of the new agreement, with Iceland keen to adopt the use of CHEP’s innovative display pallets. Other potential opportunities for Iceland to improve its supply chain efficiencies include CHEP’s innovative transport collaboration programme which encourages manufacturers, retailers and logistics service providers (LSPs) alike to work together to reduce the empty running of vehicles by identifying potential transport legs that can be reduced or removed completely.
Commenting on the new agreement, CHEP UK & Ireland, Managing Director, Rod Francis said: “I’m delighted that we can extend our strategic relationship with Iceland in this way. The initiatives that we’ve already delivered, and the new areas we’re exploring have the potential to deliver significant benefits to Iceland. I’m looking forward to seeing how these develop during the term of the agreement, and to seek further opportunities to collaborate for our mutual benefit.”