CHEP and IFCO sign contracts with Sonae MC in Portugal

CHEP and IFCO are delighted to announce today two separate agreements with the Portuguese market leader in food and specialised retail formats, Sonae MC, to provide Total Equipment Management services and managed Returnable Plastic Crate (RPCs) services.   CHEP and IFCO are the main operating brands of the Brambles Group, a logistics services company specialising in the pooled management of pallets, crates and containers, primarily in the consumer goods supply chain.

The new agreements between the two companies will make CHEP and IFCO the main  providers of pallet management and RPC pooling services for Sonae MC. IFCO will supply RPCs used by suppliers to deliver fresh produce to Sonae MC stores. CHEP will be responsible for managing pooling equipment inspection facilities located at the retailer’s distribution centers.

Sonae MC Logistics Director, José Casimiro Ferreira, said: “The purpose of this new partnership is to improve our competitive edge by reducing expenditures on pallet and RPCs management. Pallet and RPCs quality and strength are essential to guarantee efficiency and safety throughout our operations, helping prevent accidents and reduce product damage”

Total Equipment Management is a service developed by CHEP incorporating pallet, crate and container sorting, inspection and repair at plants at or close to customer sites. Total Equipment Management ensures pallets and containers that meet specifications are reintroduced to the supply chain immediately and damaged equipment is conditioned on-site.

At Maia in the North of Portugal and Azambuja in the South, Brambles has established Total Equipment Management sites that centralise and consolidate the receipt and classification of pallets and RPCs within the Sonae MC’s distribution centres. This avoids the need to transport empty equipment first to CHEP or IFCO service facilities before re-issuing to the customer, saving significant transportation costs. It also reduces carbon emissions with the need for fewer trucks on the roads.

Sonae MC Warehouse Director, Hugo Santos, said: “Brambles’ leadership in environmental sustainability was an important factor in the decision to sign the new agreement. The environmental performance of Sonae MC activities, products and services is an integral part of our social responsibility. Their sustainability commitment makes IFCO and CHEP pooling solutions well suited to our operations.”

Sonae’s use of CHEP pooled pallets and Total Equipment Management services are expected to reduce carbon dioxide emissions by 2,025 metrics tonnes annually – the equivalent of the emissions from the electricity use of 303 homes for one year[1] – as well as preventing 995 m3 wood from being sent to landfill every year.

CHEP Vice President and Country General Manager for Iberia, David Cuenca, said: “CHEP and IFCO have a unique value proposition based on improving logistics efficiencies and reducing costs throughout the supply chain with a consolidated pallet and RPC pooling service”. IFCO Vice President for Southern Europe, Manuel Montero, said: “We intend to do everything in our power to maintain the quality of our equipment and services to the highest standards and help optimise Sonae transport and logistics operations, while helping the company achieve its sustainability targets in the coming years”.