CHEP’S MANAGED RECOVERY SERVICE

CHEP’S MANAGED RECOVERY SERVICE OFFERS IMPROVED EFFICIENCIES FOR FRESH PRODUCE SUPPLIERS

Managed Recovery Introduction Pack

WEYBRIDGE, UK – 10 April, 2007 – Following the industry-wide introduction of Factory Gate Pricing and working in conjunction with the Fresh Produce Consortium (FPC), CHEP has developed an innovative supply chain solution called Managed Recovery.  This new service, which was designed to complement Factory Gate Pricing and Backhaul initiatives, delivers a reduction in total vehicle movements and environmental costs, whilst enabling a highly efficient pallet exchange service.

Managed Recovery is an enhancement to the CHEP pallet pooling exchange service, where the return of trade quality pallets (pallets in a serviceable condition which have already been used in the supply chain) is undertaken in full truck loads by CHEP from the retailer / distributor back to suppliers.  Suppliers or transporters delivering pallets loaded with goods to retail locations, will no longer be required to receive in exchange the same number of empty pallets.  They will instead simply notify CHEP of the delivery and the corresponding number of pallets will be transferred off of their account.  The pallets transferred will be added to what is known as the Supplier’s Entitlement Balance.  The supplier will then be able to order trade quality pallets from CHEP up to the maximum of the balance.

Following the introduction of Factory Gate Pricing, the FPC has been instrumental in helping to develop and shape the new service ensuring that its members are not disadvantaged.  Nigel Jenney, Chief Executive with the FPC said, “The introduction of Factory Gate Pricing and the fact that obtaining empty pallets through exchange is not as straightforward as it once was, has affected many of our members and we are delighted CHEP has introduced this service as a workable solution for the recovery of empty pallets.   Fresh produce suppliers will now be able to focus once again on supplying quality produce, rather than on pallet availability.  Many suppliers will also benefit from cost savings as a result of increased efficiencies in supply chain flows, not to mention the associated environmental benefits, due to a decrease in the number of vehicle movements.”

The new service operates in conjunction with PortfolioTM, a leading-edge system developed by CHEP, which enables suppliers to simply login and register the number of pallets that have been collected and order trade quality pallets as required – 24 hours a day, 7 days a week.

James Dinsdale, Managing Director, CHEP UK & Ireland commented, “CHEP is dedicated to developing and refining the services we offer, to meet our customers’ ever changing needs.  We have worked closely with a wide range of customers, including major retailers, to develop and extensively test the Managed Recovery service.  We are delighted with the response we have received so far and we are very pleased with the support we received from the FPC.”

About The Fresh Produce Consortium
The Fresh Produce Consortium is the trade association for the fresh produce sector in the UK.  Membership covers all areas of the industry spectrum including wholesale, food service, importer, packer, retail and floral. 

The FPC offers members a wide range of services including organizing regular forums to disseminate information and discuss key industry issues, representing members at government level both in the UK and EU, promoting consumption of fresh produce through education in schools and the wider community.  Increasingly aware of the problems members are facing from environmental and energy issues, the FPC is developing a strategic plan to help improve the sector performance in these areas.For further information visit www.freshproduce.org.uk.

About CHEP
CHEP is the global leader in pallet and container pooling services serving many of the world's largest companies.  The company has more than 7,700 employees and operates in 44 countries.  Combining superior technology and an asset base of more than 280 million pallets and containers, CHEP offers its customers exceptional value, a platform that enables reduction in customer product damage, and an environmentally sustainable logistical solution.  Supply chains served include consumer goods, produce, beverage, and the automotive industry.  With global partners that include Procter & Gamble, Kellogg's, Kraft, Nestle, Ford and GM, CHEP is known for Handling the World's Most Important Products. Everyday.  For more information, please visit: www.chep.com .

For further information, please contact:
Robert Hutchison                                                        
Director, Marketing & Communications                                   
CHEP Europe                                                            
+44 (0)1932 833035                                                  
robert.hutchison@chep.com