Long-time CHEP client Iceland Foods Ltd., a British supermarket chain and the UK’s frozen food leader, operates 850 stores in the UK, while expanding sales in international markets. Iceland is developing new store formats. Products include frozen prepared meals and vegetables as well as non-frozen grocery items such as produce, meat, dairy, and dry goods.
BUSINESS NEED – Iceland needs to improve efficiencies in its supply chain, both within the UK and for international shipments, and is counting on CHEP to find new opportunities in that area. The company also needs to optimize its transport system to reduce costs and CO2 emissions and wants to improve in-store promotional efforts with more effective displays.
SOLUTION – Iceland has signed a 3-year contract extension with CHEP for 100,000 industry standard 12000x1000mm pallets per year to continue receiving quality pallets that it can depend upon. The company is also planning to collaborate with CHEP to optimize its transport system and is interested in using CHEP’s innovative display pallets in the new store formats.
BENEFITS – Iceland has come to rely on the strength and handling ease of CHEP pallets and the efficiency of CHEP’s pallet management system. CHEP quarter- and half-pallet display sizes can help promote in-store sales and facilitate restocking. CHEP’s Transport Collaboration Program will help organize the transport system to reduce empty running of vehicles and improve delivery routes to cut costs and help Iceland meet its sustainability goals.
New CHEP Contract Set to Improve Iceland Food’s Supply Chain
Iceland Foods Ltd., trading as Iceland, the recognised leader in frozen food in the UK, has signed a new three-year commercial agreement with CHEP UK that will deliver significant supply chain efficiencies in both its UK store operation as well as its growing international business.
The new agreement builds on an already strong relationship between the two organisations who have been working together closely for many years. Central to the deal will see CHEP supply around 100,000/annum of its industry standard B1210A pallets (12000x1000mm) to support Iceland’s container devanning operation at their 4 main DCs at Livingston, Enfield, Swindon and Warrington. In addition, Iceland will continue using CHEP equipment throughout its UK network of more than 850 stores, as well as its growing international business including shipments to Portugal and the Czech Republic.
The strength of their existing relationship is an important factor underpinning the new agreement, acknowledged by Dave Rowlands, Contracts & Commercial Manager at Iceland. He said: “CHEP understand both our business model and our supply chain very well. We’re like-minded organisations and are working towards the same goals and objectives. To have such a close, strategic partner on our side delivers significant benefits from our perspective. We’re delighted to cement our relationship for another three years, and look forward to exploring other initiatives that will help improve the efficiency of our supply chain.”
Further strategic opportunities to work together are expected to arise over the course of the new agreement, with Iceland keen to investigate adopting the use of CHEP’s innovative display pallets in their new store formats. Other potential opportunities for Iceland to improve their supply chain efficiencies include CHEP’s innovative Transport Collaboration Programme which encourages manufacturers, retailers and logistics service providers (LSPs) alike to work together to reduce the empty running of vehicles by identifying potential transport legs that can be reduced or removed completely.
Commenting on the new agreement, Rod Francis, Managing Director, CHEP UK & Ireland said: “I’m delighted that we can extend our strategic relationship with Iceland in this way. The initiatives that we’ve already delivered, and the new areas we’re exploring have the potential to deliver significant benefits to Iceland. I’m looking forward to see how these develop during the term of the agreement, and to seek further opportunities to collaborate for our mutual benefit.”