Mondelēz Intl. has signed a three-year contract renewal with CHEP for managed pooled pallets in Western Europe and Central and Eastern Europe for more than seven million pallet movements annually.
In its simplest form, equipment pooling is the shared use of high quality standard pallets and containers by multiple customers who collectively benefit from the network scale of the pool, versus trying to manage reusable equipment individually. Pooling is a strategic business option for companies that want to reduce capital expenditure and improve day-to-day supply chain operations. A typical cycle would be:
• CHEP service center issues ready-for-use pallets and containers to suppliers, manufacturers and growers for use and movement through the supply chain.
• Products are loaded onto the CHEP equipment and shipped through the supply chain.
• At the end of the supply chain, the receiving business unloads the goods and returns the pallets or containers to the nearest CHEP Service Centre
• At the service center, CHEP inspects and conditions all returned pallets and containers.
Mondelēz Intl. is a world leader in chocolate, biscuits, gum, candy, coffee and powdered beverages. It's portfolio includes several billion-dollar brands such as Cadbury and Milka chocolate, Jacobs coffee, LU, Nabisco and Oreo biscuits, Tang powdered beverages and Tridentgums.
Oliver Cofler, European logistics operations director, Mondelēz Intl., said, "CHEP has a broad European network that is fully aligned with our logistics strategy and growth plans. Other important benefits provided by the CHEP system are excellent customer service and flexibility, as well as pallet quality, availability and product innovation. We also appreciate the investment that CHEP is doing expanding its business to Central and Eastern Europe."
Mondelēz Intl., whose European headquarters are in Zurich uses CHEP pallets to transport products to more than 100,000 customer locations throughout Europe. Both teams are excited about possible future growth opportunities for CHEP lane expansions in Spain, France, Italy, Scandinavia and Benelux.
The company is very interested in CHEP Europe's recent announcement about the launch of a customer collaboration and sustainability program, which is reducing carbon emissions for CHEP and customers through shared transportation of empty pallets.
"CHEP offers an environmentally friendly business model, driven by the continuous repair and reuse of pooled pallets. It is an important advantage that we really value," said Cofler. "Mondelēz is counting on CHEP to help us meet our own CO2 emissions reduction targets. We consider CHEP to be a supply chain leader in sustainability."
CHEP's vp EMEA, Key Accounts & Strategy, Jochen Behr added, "Mondelēz has a longstanding strategic partnership with CHEP based on continuous improvement and the use of technology solutions that streamline processes between both companies to strengthen our relationship
"We truly appreciate the trust that Mondelēz places with us and we look forward to continuing our partnership. Over the years, our businesses have grown together while driving overall supply chain efficiencies in a sustainable way."