CHEP, global leader in pallet and container pooling services - has been awarded a three-year contract renewal by Arla Foods worth more than £3 million. CHEP pallets will now be carrying a range Arla products including 86 million litres of Cravendale milk, 16 million litres of cream, more than 90,000 tonnes of butter and spreads and 11,000 tonnes of cheese a year.
The products involved include top brands such as Anchor and Lurpak butter as well as Apetina and Castello cheeses. The products will be transported from Arla Foods' businesses in Denmark and Sweden to its national distribution centre in the UK located at Stourton, near Leeds. Products are then transported onwards to the major multiples. In addition, CHEP pallets will be used for the UK distribution of Cravendale milk and cream from Arla Foods' dairies at Stourton and Chelmsford.
CHEP has also won a contract to supply Arla with pallets to transport a new range of dairy products to be made at Arla's flagship dairy at Stourton which is currently being extended. Production of the new products which will include Crème Frâiche and - a first for Arla - cottage cheese, is due to begin early next year.
Past experience was an important reason for one of Europe's leading dairy companies choosing to stay with CHEP said Per Kristensen, Logistics Manager for Arla Foods UK : "We have always been very happy using CHEP pallets for our movements of goods, because of their superior quality and availability."
Another key factor influencing Arla's decision was the cost efficiencies generated across the entire supply chain as a result of using the CHEP service. "Our new agreement means that we can continue to focus on our core business, which is providing high quality dairy products in the most environmentally responsible way," Per added.
Daniel Walsh, Commercial Director, CHEP UK & Ireland, said: "I am delighted that CHEP has been re-awarded this prestigious contract from Arla Foods. It is also a great endorsement for us to be involved with the new products that are soon to be produced at the Stourton dairy.
"As part of the contract both companies will be jointly exploring new ways to further reduce the environmental impact of the flow of goods. We are fully committed to making sure that whatever we do is environmentally friendly and our integrated logistics system helps reduce waste and 'empty runs', minimising both cost and environmental impact."