CHEP, a Brambles Company (ASX:BXB), has announced a six-year service agreement with Australia’s leading fresh food retailer Woolworths Limited.
Under the agreement, CHEP will supply and manage its specially designed collapsible produce crates to Woolworths’ vendors who will exclusively provide produce packed in the new crates to Woolworths supermarkets across Australia and New Zealand.
The President of CHEP Asia-Pacific, Howard Wigham, says the agreement was the largest in the history of CHEP in the Asia-Pacific region, and would double CHEP’s Fresh business.
“This agreement will set a benchmark in supply chain efficiency, safety and environmental performance,” Wigham says.
“It will place leading edge foldable crates into Australia’s fresh produce supply chain delivering best in class performance for the first time.” .
“The agreement covers the supply, tracking, retrieval and inspection of used crates, and the repairing, washing and relocating of the crates for their next use,” he says.
“The reusable, returnable and recyclable crates will carry produce from farm to supermarket shelves.”
Mr Wigham says CHEP Asia-Pacific searched the globe to develop a fresh produce system that delivers optimal value, helps reduce OH&S risks associated with manual handling, is environmentally efficient and protects the quality of produce from the farm to the supermarket shelf.
As part of the undertaking, CHEP will upgrade its crate-washing service centre network with recycling systems that cut water usage and sewer discharge by up to 90 per cent.
“This major initiative will help us work towards our vision of leaner, greener and safer supply chain solutions across Asia-Pacific,” Wigham says.