CHEP, the supply chain solutions company, has announced a two-year contract renewal plus increased business with Nestlé Middle East & North Africa (MENA) to replace traditional white exchange pallets with a CHEP managed pallet pooling solution throughout the region. The switch from white wood to CHEP pooled pallets is expected to streamline Nestlé’s supply chain, while reducing cost and driving sustainability benefits mainly reducing de-forestation and less CO2 emissions.
Nestlé is the world’s largest food and beverage company. With its regional head office located in the United Arab Emirates (UAE), Nestlé operates 25 factories in 19 countries across MENA. The Nestlé product portfolio in the region currently exceeds 60 brands in a wide range of categories: dairy and infant nutrition, bottled water, chocolate and confectionery, coffee creamers, breakfast cereals, culinary products and pet food, among others.
Stefano Crotti, Nestlé Head of Logistics MENA, said: “For Nestlé, the Middle East and North Africa means 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 recognised 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 Nestlé’s commitment for Zero net emissions by 2050”.
Marco Salort, CHEP MENA Commercial Director, said:. “Nestlé is a key strategic global customer for CHEP. We share a vision of the future based on sustainability and responsibility towards our environment”.
“We at CHEP understand that our customers are an extension of our activity and consider them to be part of our company. We have collaborated very openly to successfully develop a long-term model built around service excellence, cost efficiencies, process standardisation and sustainability. The MENA agreement provides a clear framework under which we can continue to partner together to build ongoing efficiencies and value’’.