Tesco and global pallet and container pooling firm CHEP have launched a service aimed at significantly reducing the number of vehicle movements.
The service - known as Managed Recovery - is designed to complement the Tesco supply chain and improve efficiency in the management of empty pallet returns back to manufacturers and producers.
The move is part of CHEP’s ongoing commitment to boost energy efficiency and reduce waste and CO2 emissions and part of the drive to introduce more integrated transport flows across the industry.
The service was introduced as an enhancement to the CHEP Exchange service.
The initiative will see CHEP return trade quality pallets - pallets which have already been used in the supply chain - in full truck loads back to suppliers.
Suppliers delivering loaded pallets into Tesco will no longer be required to receive in exchange the same number of empty pallets, but will instead be instructed to notify CHEP of the delivery and the corresponding number of pallets will be transferred off their account.
The introduction of this service will reduce the number of total vehicle movements normally associated with exchange activity, including the inefficient movement of partially loaded trucks, according to the firm.
James Dinsdale, CHEP UK & Ireland managing director, said: “We have worked closely with a wide range of our customers, including Tesco, to develop and extensively test the Managed Recovery service. We are delighted with the response we have received so far following the introduction of this new service and very pleased with the support that we have received from Tesco in particular.”
Tesco transport director Alex Laffey added: “We are delighted to be involved with CHEP in the development of this new creative solution. The introduction of Managed Recovery means that we are reducing fuel consumption and CO2 emissions as well as allowing Tesco and its suppliers to improve vehicle utilization.
“We estimate that by implementing this new service, our suppliers will eliminate the CO2 emissions equivalent to supplying over 2,300 homes with electricity for one year.”
The Grocery Industry Pallet User Group, which represents the views of major manufacturers and logistics providers, helped CHEP to develop and shape the new service.
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