Iceland has entered into a three-year deal with logistics solutions provider, CHEP, with a view to boosting its supply chain efficiencies across the UK and abroad.
According to SupplyChainAnalysis.igd.com, the deal means that CHEP will supply approximately 100,000 of its industry standard pallets each year to the retailer’s main distribution centres in Livingston, Enfield, Swindon and Warrington. It will also provide similar resources to Iceland’s international operations.
Furthermore, Iceland will allow CHEP’s supply chain experts access to its distribution centres to lend support to its asset management initiatives at a local level.
Further strategic opportunities for the two companies are expected to arise over the next three years as a result of this deal. Iceland is keen to use CHEP’s display pallets, and is also looking to improve its supply chain efficiencies in the near future, which could include using the pallet supplier’s transport collaboration programme.
CHEP’s transport collaboration programme entails bringing manufacturers, retailers and logistics service providers together to shrink the number of empty running vehicles on the road by finding transport legs that could be reduced, or even removed entirely.
In 2014, CHEP revealed that the programme had removed more than 900,000 road miles from the UK and Ireland supply chain, reducing carbon emissions by 1,573 tonnes and delivering savings for its customers.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Jenny Whelan. To subscribe to ESM: The European Supermarket Magazine, click here.
