CHEP rolls out first pallet pooling solution in Jordan

Published: 16 July 2020 - 3:51 a.m.

CHEP, the supply chain solutions company, has expanded its Middle East operations into Jordan with the launch of managed pallet pooling services for Fine Hygienic Holding, the MENA region’s leading wellness group and tissue manufacturer.

The new CHEP share and reuse business replaces the use of traditional white wood pallets by Fine, thus streamlining the paper giant’s supply chain and adding sustainability benefits.

Emran Al Hadid, Fine Supply Chain Manager for Egypt and the Levant, said, “The CHEP pooled pallet model effectively replaces our traditional white wood pallet pool. CHEP manages the supply and recovery of the pallets, while providing sustainability benefits by continuously repairing and reusing pallets instead of sending them to landfills as waste. We certainly see the potential for overall supply chain cost savings with CHEP, but one of the things we are most excited about is partnering with a business that takes sustainability seriously and can help us deliver on our environmental goals.

“The cost of purchasing white wood pallets is steadily increasing as well, while their quality is steadily decreasing, adding unnecessary risk to our logistics operations,” he said. “Through the density of CHEP’s network, their share and reuse business model, commitment to zero waste to landfill and impressive pallet quality standards, we are able to demonstrate tangible sustainability and cost saving benefits.

Marco Salort Pons, Commercial Director, CHEP Middle East & Africa (MENA), observes that the pooling concept is relatively new to many industries in the region. “We believe this new partnership with Fine in Jordan will serve as an excellent introduction to the benefits that CHEP offers, such as standardized, durable platforms, designed for safe handling and product protection, as well as the potential for overall supply chain savings in terms of both costs and environmental impacts. CHEP’s circular business model is also underpinned by sustainable sourcing of renewable and recyclable materials for use in its extensive share and reuse network across the Middle East.”

Fine Hygienic Holding has been a CHEP customer since 2014 in other parts of the Middle East. The company operates 11 plants across five countries (Egypt, Jordan, Morocco, Saudi Arabia and the UAE) and has distribution operations in 75 countries. In Jordan, CHEP will supply pallets to Fine’s Al Snobar Paper Mill, which is one of the largest and most modern paper mills in the region, and to the group’s converting factory, for local distribution within a controlled pool.

CHEP operates across seven countries in the Middle East – the United Arab Emirates, Kingdom of Saudi Arabia, Oman, Bahrain, Kuwait, Jordan and Lebanon. They have 23 centrally located service centres that enable them to service more than 70 cities daily with supply chain solutions.

Tamir Ezzat, Regional Manager, Strategy & Growth CHEP MENA adds that FINE and CHEP have built a strong business connection through leading the supply chain transformation in Jordan and across the region. “Together we will be exploring new avenues of collaboration throughout the FINE network with the goal of enhancing supply chain efficiencies, reducing waste and contributing to sustainability within their distribution networks.”

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