Travis Perkins plc, one of the largest suppliers to the UK building and construction business, has signed a landmark five-year contract with CHEP, the world’s leading provider of pallet and container pooling solutions, which will significantly modernise the supply chain of the construction industry in the UK.
This agreement with Travis Perkins plc represents CHEP’s first foray into the construction business. As such, it marks a significant strategic step forward for the sector as it seeks to take advantage of the superior build quality of pooled pallets which are produced to a much higher standard than single-use white pallets, normally used within this industry.
Brian Huckle, Supply Chain Development Director for the Plumbing and Heating Division of Travis Perkins plc, said: “We are delighted to be working with CHEP going forward. This relationship is a great match in terms of improving the efficiency and sustainability of our supply chain. The use of reusable pallets will also help us to reduce our carbon footprint”.
“As market leaders in our respective fields, both Travis Perkins plc and CHEP are committed to finding new ways to work more efficiently, which will ultimately help to modernize the supply chain to a long-established industry.”
The new contract is underpinned by a comprehensive joint business plan that will see CHEP provide full pallet category management services across the whole of Travis Perkins plc. This service provision incorporates the management of all loose pallets equipment throughout Travis Perkins plc’s supply chain, including CHEP standard pallets as well as a tailored service to manage white pallets and bespoke pallets.
In addition, CHEP has committed to provide an on-site Category Manager at Travis Perkins plc’s primary distribution hubs at Brackmills, Northampton in the East Midlands of England and Omega North, Warrington in Cheshire, to manage the partnership and support both the change management process as well as the implementation of asset controls protocols.
Included within the scope of the joint business plan is the introduction of CHEP’s industry standard B1210A pallets (1200x1000mm) for deliveries from Travis Perkins plc’s distribution centres to more than 1900 outlets nationwide.
CHEP Vice-President and Country General Manager for UK & Ireland, Rod Francis, said: “Until now, the construction sector has predominantly been served by high cost, single-use white pallets, which ultimately end up in landfill as wood waste. The introduction of CHEP pallets and our supply chain expertise is a real step forward for the sector as a whole which can now enjoy superior quality pallets as well as the environmental benefits associated with them which will reduce everyone’s carbon footprint.”
It is anticipated that the joint business plan will evolve significantly during the five-year life of the agreement, with several other supply chain initiatives under investigation.
