The leading toy manufacturer, the LEGO Group, with its headquarters in Billund, Denmark, has recently decided to centralise its warehousing and distribution activities across Central Europe. In doing so and as a key component of this new logistics strategy, LEGO has also decided to progressively move away from using White Pallet Exchange and further expand its use of CHEP blue pallets across its operations. LEGO is confident that this decision will deliver improved efficiencies, allowing it to provide an improved level of service to its customers, using a solution that is environmentally friendly.
“The White Pallet Exchange system is difficult to manage and involves many hidden costs, such as the purchase of new pallets to replace losses and the additional time it takes to manage ongoing disputes with distributors and logistics service providers. We are confident that CHEP offers a more efficient and cost effective solution,” says Mr. Bo H. Kristensen, LEGO Group Logistics Consultant, Europe & Asia. Jesper Touboel, Director, Customer Logistics, the LEGO Group, adds: “For LEGO, it is essential that we have a pallet set-up that is environmentally sustainable and which provides LEGO with a solution that is financially acceptable allowing us to focus on our core business activities.”
Since it was founded in 1932, LEGO has always been focused on the impact which its activities are having on the environment. “Waste reduction is one of our key priorities and by working with CHEP we can ensure we benefit from the environmental benefits of using pooled equipment solutions” says Mr Bo H. Kristensen. He adds: “We are convinced that the CHEP pooling system is as beneficial for our company as it is for our customers, leading retailers across Europe. For this reason we have an ongoing dialogue with these customers to promote the use of the CHEP pallets and so far they have been very receptive.”
Christophe Loiseau, Senior Vice President, Sales and Marketing, CHEP Europe commented, “Using CHEP pallet and container pooling services creates supply chain efficiencies and removes the need for manufacturers, producers and retailers to be distracted from focusing on their core business activities. Also, by using CHEP our customers do not have to incur the capital expenditure associated with buying the equipment, not to mention the costs of return transportation, repairs and losses.” He continues: “We are very pleased to be working with LEGO and we are confident that other companies across Central Europe will also elect to switch to CHEP for both their domestic and international activities, due to the increased efficiencies and cost savings that they will gain as a result.”
CHEP is the global leader in pallet and container pooling services serving many of the world’s largest companies. The company has more than 7,000 employees and operates in 45 countries. Combining superior technology and an asset base of more than 300 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.
For more information about CHEP please visit: www.chep.com
Tel: 01932 833035
CHEP UK & Ireland
Tel: 0800 73 74 75