Coca-Cola Enterprises Ltd. (CCE), the strategic bottling partner for Coca-Cola in Western Europe, believes that collaboration and innovation throughout its supply chain are essential to advancing its sustainable growth. The company strives to inspire and drive sustainable change with its suppliers as well as in its own organization. CCE has embedded sustainability into its procurement processes and supplier relationships and has developed additional programs to support strategic opportunities for collaboration.
BUSINESS NEED – CCE has created a set of Supplier Guiding Principles that sets out the minimum requirements it expects its suppliers to adhere to, including labor laws and regulations, health and safety, human rights, environment and business integrity. In order to continuously improve its sustainability performance, the company needs its suppliers to perform up to high standards and understand the importance of responsible workplace policies and practices, respect for human rights and environmental protection.
SOLUTION – The performance of suppliers is evaluated on the basis of quality, cost and value, service and innovation, and corporate responsibility and sustainability (CRS). The CRS evaluation is based on the sustainability rating from EcoVadis, a highly respected independent agency. It also relies on the results from CCE’s Suppliers’ Carbon Challenge, which is designed to encourage suppliers to reduce their carbon impact. To recognize top performance, CCE has created a prestigious Supplier Awards Program, naming winners and runners-up each year for Best Supplier, Most Improved Supplier, and CRS Supplier.
BENEFITS – Owing to CHEP’s collaboration with CCE to help significantly reduce carbon emissions through pallet pooling and continuous efforts to develop sustainable supply chain solutions, CCE named CHEP the CRS Supplier of the Year. Contributing to the selection was CHEP’s 20% reduction of carbon emissions, use of 100% Certified sustainable timber, zero wood waste going to landfills, and rise to Gold Level in the CSR analysis system of EcoVadis. Winning the award is recognition of CHEP’s achievements in sustainable collaboration and initiatives. It demonstrates what can be accomplished by working together.
CHEP Wins CSR Supplier Award from Coca-Cola Enterprises
CHEP, a global leader in managed, returnable and reusable packing solutions for many of the world’s largest supply chains, was named winner of Coca-Cola Enterprises Ltd. (CCE) Corporate Responsibility and Sustainability (CRS) Supplier Award for collaborative efforts that helped CCE significantly reduce carbon emissions through pallet pooling and CHEP’s continuous efforts to develop sustainable supply chain solutions.
CCE, the strategic bottling partner for Coca-Cola in Western Europe, is the world’s third largest independent Coca-Cola bottler, operating manufacturing sites across six countries in Europe. The company believes that collaboration and innovation throughout its supply chain are essential to advancing its sustainable growth. As such, CCE is working with 140 key suppliers to reduce carbon emissions across each stage of its value chain.
The company evaluates the performance of suppliers using a comprehensive Supplier Relationship Management process, which considers each supplier’s collaboration, management focus and improvement. The best performers are recognised with the annual CCE Supplier Awards.
David Cowell, CCE Senior Vice President, Supply Chain, Coca-Cola Europe, said, “CHEP has been selected as the winner of the CRS Supplier Award for being a key partner of CCE and our main retailer in Belgium, Colruyt supermarkets, and for delivering significant carbon emission reductions by implementing a closed loop pallet pooling solution.” CCE has been working with CHEP for 33 years. The company currently uses almost 8 million CHEP pallets per year.
He noted that CHEP Europe has reduced carbon emissions by 20%, achieved Chain of Custody Certification for 100% of timber purchased, and stopped any wood waste from CHEP’s own service centres from being sent to landfills. In addition, CCE and CHEP collaborated and jointly developed in the UK an efficiency enhancement in the form of an innovative new CHEP dolly, a wheeled conversion of the CHEP quarter-pallet.
CCE was impressed by CHEP’s rise to Gold Level in the CRS analysis system of EcoVadis, the leading European agency for evaluating supply and service partners. Gold is the highest rating given by EcoVadis, which rates suppliers on 21 criteria related to Environment, Fair Labor Practices, Ethics/Fair Business Practices and Supply Chain.
CCE participates in CHEP’s Collaborative Transportation program, which eliminates empty truck movements and reduces transportation costs by using the same truck to haul empty pallets back to CHEP after unloading palletized products. In the past 12 months, the Collaborative Transportation Program has removed 3 million kilometres of truck haulage from Europe’s roads, reducing carbon dioxide emissions by 2.887 metric tons. That is the equivalent of CO2 emissions from the electricity used by 397 homes for one year, while producing cost savings for CHEP customers.
“Pallet pooling with CHEP makes our complex supply chain a lot simpler, so our people can focus on their core business,” related Mr. Cowell. “We look forward to working with CCE on expanding pallet pooling solutions in other countries and together rolling out more projects to optimize the pallet repair flows in order to further reduce carbon emissions and make our operations more sustainable,” he added.
Michael Pooley, CHEP President for European Pallets Operations, said, “It is an honor to be named Coca-Cola’s CRS Supplier Award winner. It is a great achievement that we reached due to the continuous sustainable collaborations and initiatives we established and continue to set up across Europe. The award demonstrates what can be achieved by working together. It gives us a competitive advantage in the marketplace,” he noted.