Heinz contract extension with Chep based on sustainability and supply chain partnership

H.J. Heinz Company, the worldwide food processing company, has signed a three-year contract renewal with Chep for the use of pallet pooling services throughout Europe. The agreement is a result of the European pallet pool tender process recently undertaken by Heinz, which identified supply chain co-operation as a core requirement.

Under the new contract, Heinz will increase its use of Chep's service by adding all its pallet export flows from the European Tomato Ketchup factory located in Elst, The Netherlands to the UK, entering in a supply chain agreement that will maximise equipment utilisation and achieve joint objectives on efficient and sustainable transportation.

Heinz European Logistics Excellence Leader, Tom Tillemans, said: "Chep's broad coverage and reputation as a supply chain sustainability leader set them apart from the competition. Like Chep, Heinz is committed to engaging our stakeholders and operating with the highest degree of integrity and transparency. We have a shared passion to collaborate and reduce our environmental impact while eliminating unnecessary costs".

In Europe, Heinz, Chep and Samskip, one of the larger European transport companies, are participating in a collaborative 'Lean and Green barge project'[1] to ship products from The Netherlands to the UK. Returning barges carry empty pallets to Heinz plants, where they are reloaded with product. That saves transportation costs, reduces congestion and greenhouse gases on the roads and optimises supply chain operations.

Heinz and Chep have become even closer sustainability partners since their decision to participate in the Chep Carbon Neutral Pallet service offer, which enables customers to purchase carbon credits to help finance emission-reduction projects worldwide. It is a cost-effective way for Chep to help customers reach their carbon reduction targets and their sustainability goals.

Chep President for European Pallets operations, James McCarthy, said: "We intend to do everything in our power to maintain the quality of our equipment and services to the highest standards and actively help to optimise Heinz's transport and logistics operations. Our new agreement enables us to build on the existing business, while applying cost and carbon reduction programmes'.

H.J. Heinz Company is the largest US-based food processing company in the world with around 650 million bottles of Heinz Ketchup being sold every year in 200 countries.

^{[1] Lean and Green is a stimulation programme for businesses and authorities, implemented by Connekt: a Dutch non-profit network for sustainable mobility. It aims to encourage businesses and government bodies to move to a higher level of sustainability, by taking measures that not only yield cost savings, but at the same time reduce the burden on the environment.}