A UK supplier of branded soft drinks is enjoying substantial environmental savings, thanks to the use of CHEP’s pooled pallets within its supply chain.
AG Barr has been in the business of quenching the nation’s thirst since 1875, creating and selling some of the UK’s best-loved soft drinks in the process. In early 2017, the owner of brands such as IRN-BRU, Rubicon and Strathmore, signed a three-year contract renewal with CHEP, the supply chain solutions company, and is now reaping the benefits from an environmental perspective.
Under this new contract, CHEP supplies approximately 655,000 of its industry standard B1210A pooled pallets (1200mm x 1000mm) per year, using a combination of one-way trip and managed recovery services across the AG Barr supply chain network. A number of initiatives are also currently being reviewed, targeted at delivering a range of supply chain efficiencies that benefit both parties.
Less than halfway through the new agreement, this strategic partnership with CHEP is already delivering significant environmental savings for AG Barr when compared to using white wood pallets, including:
- Reducing CO2 emissions by 57% or 871,399 kg; the equivalent of 5 million car kilometres;
- Saving wood resources by 622,922 dm3, a reduction of 70%: the equivalent of 602 trees;
- Reducing waste by 78% or 59,867kg; the equivalent of 5.4 million coffee cups.
Commenting on these savings, Graeme Kay, Head of Logistics at AG Barr said: “It’s fantastic that we are able to quantify these environmental savings in this way and demonstrate our shared commitment to sustainability. The benefits that we’re seeing here really is testimony to the strength of our working relationship with CHEP which dates back 25 years. And it just goes to show what can be achieved when organisations work together towards a common goal.”
To compare the impact its pooled pallets have on the environment, CHEP commissioned a third-party independent study to evaluate the use of its pallets versus white wood pallets if these were used within AG Barr’s supply chain as an alternative platform. This Life Cycle Analysis (LCA) study considers all environmental impacts through the product life-cycle and follows ISO-14044 methodology.
Helen Lane, CHEP’s Vice President, Northern Europe, is delighted with this latest set of savings being realised by AG Barr: “At CHEP, we’re continually working with our customers and industry to help deliver innovative solutions for smarter, more agile, and more sustainable supply chains. It’s extremely satisfying when we see our customers benefitting from this approach. The size of the savings that AG Barr has achieved through the use of CHEP’s pooled pallets is fantastic. And once again we’re seeing the benefits of what two like-minded organisations can achieve when we place environmental sustainability at the heart of what we do.”