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Morrisons signs five-year contract with CHEP

12 January 2011

Morrisons has signed a renewal of an existing contract with CHEP UK & Ireland to issue Reusable Plastic Containers (RPCs) into its food supply chain over the next five years

Over the term of the contract, more than 325 million issues are expected to take place.

Morrisons’ Logistics Director Neal Austin said the supermarket had developed a strong and collaborative relationship with CHEP since the two companies began working together four years ago.

Mr Austin said: “CHEP are no longer just our equipment providers. We have a genuine partnership built on value and trust that is committed to continuous improvement throughout our supply chain. We’ve seen a step change and recognise that CHEP UK & Ireland people go the extra mile to meet demand for our own network and for our suppliers.”

Under the terms of the renewed contract, approximately 65 million issues of RPCs per year will be made by CHEP UK & Ireland to a variety of customers in the fresh produce, meat, poultry and ready-meal sectors, which then use the RPCs to transport their products to Morrisons. CHEP collects the empty containers from Morrisons' distribution centres, for inspection and washing, before they are issued once again.

CHEP’s containers offer a clean, durable and lightweight display-ready solution that keeps produce protected and fresh for longer, while improving point-of-sale visibility and replenishment.

Morrisons uses CHEP’s pool in conjunction with its own pool of plastic trays, circulating throughout the supply chain serving 437 Morrisons stores throughout the UK.

CHEP Vice President & Country Manager, UK & Ireland, Mike Pooley said: “We are delighted to be continuing our partnership with Morrisons. We took a holistic approach to reviewing all areas of the RPC supply chain, seeking opportunities to add value and reduce waste at each stage. We also undertook a number of joint initiatives including an in-store training programme using videos and posters across Morrisons’ network of stores and distribution centres, specifically to improve equipment sorting and reduce waste. This alone has saved 20 tonnes of waste across seven of Morrisons’ regional recycling units.”

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