CHEP, a global leader in pallet and container pooling services, has been awarded a contract extension by Nestl Cereal Partners in the UK to increase total pallet issues by 250,000 per annum.
In addition to organic growth, these new flows will take CHEP's annual business with Nestl in the UK (comprising business with Nestl UK, Nestl Purina Petcare UK and Cereal Partners UK) to 2.5 million pallet movements. The two companies have been working together for 30 years.
Nestl and CHEP have also committed to increase their collaboration, having identified a series of potential value-creating joint initiatives including cooperation on supply chain synergies and new trials of display pallets.
The extended contract with Nestl Cereal Partners, which came into place on 1 January 2011, followed a rigorous competitive tender process. Nestl's reasons for choosing CHEP for its UK pallet business were competitive pricing and a drive for removing all non-essential costs from its supply chain.
CHEP Country General Manager UK & Ireland, Mike Pooley, said: "This is fantastic news for everyone concerned as it further demonstrates CHEP's and Nestl's already longstanding commitment to one another. I believe the strength of our relationship has underpinned this latest success, and I'm looking forward to our partnership developing further as we work together to improve our joint supply chain efficiency."