Henkel, the global brands and technologies company, has signed a five-year contract renewal with CHEP for the use of pallet pooling services throughout Europe. The agreement includes two significant expansion projects, resulting in an additional three million pallet flows being converted from white disposable pallets to the CHEP pallet pooling model across the Henkel European network over the last 15 months.
Torsten Roewekamp, Henkel Team Leader Purchasing Warehousing & Logistic Equipment, said: "Improvements in cost, sustainability and service have been the fundamental drivers for the expansion with CHEP, as well as the strategic fit of CHEP being our recognised long term partner across our global supply chain".
Henkel holds globally leading market positions both in the consumer and industrial sector today and is well known for brands such as Persil, Schwarzkopf and Loctite. The company is organized into three globally operating business units: Laundry & Home Care, Beauty Care and Adhesive Technologies. The Dax-30 company is headquartered in Düsseldorf, Germany, and proud of its about 50,000 employees from more than 120 nations worldwide.
The two key European expansion projects involve the Henkel Laundry & Home Care business unit in Central and Eastern Europe markets, including Poland, Hungary, Austria and Serbia converted in July 2015, and the Henkel Beauty Care business unit converted to CHEP pooled pallets in January 2016, covering key markets in Germany, France, Italy and Slovenia. Both projects have now been fully rolled out. The agreement was signed and exchanged in July at the Henkel 1GSC (1 Global Supply Chain) headquarters in Amsterdam.
Rob Sloan, CHEP Vice-President Global Accounts, said: "The extension of the European agreement between Henkel and CHEP highlights the significant value that has been created in recent years through this strategic partnership. We have collaborated very openly to successfully develop a long-term model built around service excellence, cost efficiencies, process standardisation and sustainability. The European agreement provides a clear framework under which we can continue to partner together to build ongoing efficiencies and value''.
Henkel works with CHEP across Europe, Americas and Asia-Pacific.