The supply chain solution company CHEP has agreed on two-year contract renewal and business expansion with Nestle Middle East & North Africa (MENA) to replace its conventional white exchange pallets with a CHEP managed pallet pooling solution throughout the region.
The transition from white wood to CHEP pooled pallets is expected to organize Nestle’s supply chain while cutting costs and supporting its sustainability goals mainly by reducing deforestation and CO2 emissions.
“For Nestle, the Middle East and North Africa mean growth with sustainable operations, talent and innovation. Improvements in service to customers, quality and cost have been important drivers to switch from white pallet exchange to CHEP, as well as the strategic fit of CHEP being our recognized partner across our supply chain. Furthermore, the sustainability advantage that is built into the CHEP’s ‘share and reuse’ business model is important to contribute to a circular economy and in meeting Nestle’s commitment for Zero net emissions by 2050.”
The world’s largest food and beverage company, Nestle operates 25 factories in 19 countries across MENA with its regional head office located in the United Arab Emirates (UAE). The product portfolio of Nestle in the region currently exceeds 60 brands in a wide range of including dairy and infant nutrition, bottled water, chocolate and confectionery, coffee creamers, breakfast cereals, culinary products and pet food, among others.
Commenting on the decision the Commercial Director of CHEP MENA region, Marco Salort stated that, “Nestle is a key strategic global customer for CHEP. We share a vision of the future based on sustainability and responsibility towards our environment. We have collaborated very openly to successfully develop a long-term model built around service excellence, cost efficiencies, process standardization and sustainability. The MENA agreement provides a clear framework under which we can continue to partner together to build ongoing efficiencies and value.”
The supply chain solutions company CHEP, helps move more goods to more people, with its pallets, crates and containers. It is one of the trusted company by the world’s biggest brands to help them transport their goods more efficiently, sustainably and safely. CHEP primarily serves the fast-moving consumer goods, fresh produce, beverage, retail and general manufacturing industries.