Nestlé MENA and Chep agree to contract renewal replacing white exchange pallets

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.

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 recognized 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 standardization, and sustainability. The MENA agreement provides a clear framework under which we can continue to partner together to build ongoing efficiencies and value.’

Nestlé’s heritage in the Middle East and North Africa goes back over 100 years with the sale of the first Infant Cereals in Egypt. Today, Nestlé operates 25 food and beverage factories across the 19 countries of the MENA region and provides direct employment to more than 15,000 people who are all committed to Nestlé’s purpose of unlocking the power of food to enhance the quality of life for everyone, today and for generations to come. Nestlé MENA also provides indirect employment across the region to several thousand more.

The Nestlé portfolio in the region currently exceeds 60 innovative product brands in a wide range of categories – dairy, infant nutrition, coffee and creamers, confectionery, bottled water, breakfast cereals, culinary products, health science, and pet care, among others. Nestlé Nido, Nestlé Cerelac, Nestlé Nan, S-26, Progress, Nescafe, Nespresso, Bonjorno Café, Coffee-mate, KitKat, Maggi, Nestlé Fitness, Nestlé Grain d’Or, Nestlé Pure Life, Optifast, and Purina Friskies are just some of the brands available in the Middle East and North Africa.

Chep helps move more goods to more people, in more places. Its pallets, crates, and containers form the invisible backbone of the global supply chain and the world’s biggest brands trust Chep to help them transport their goods more efficiently, sustainably, and safely. As the pioneer of the sharing economy, Chep created one of the world’s most sustainable logistics businesses through the share and reuse of its platforms under a model known as ‘pooling’. Chep primarily serves the fast-moving consumer goods (dry food, grocery, and health and personal care), fresh produce, beverage, retail, and general manufacturing industries. Chep employs approximately 11,000 people and believes in the power of collective intelligence through diversity, inclusion, and teamwork. Chep owns approximately 330 million pallets, crates, and containers through a network of more than 750 service centers, supporting more than 500,000 customer touch-points for global brands such as Procter & Gamble, Sysco, and Nestlé. Chep is part of the Brambles Group and operates in approximately 60 countries with its largest operations in North America and Western Europe.