French pallet hire firm LPR has struck its first significant deal in the UK market with a contract win with Kimberly-Clark.
The agreement, which represents almost a third of Kimberly-Clark’s UK pallet business, will double LPR’s UK pool to a million pallets and give other top brands the confidence to switch from market leader Chep, said LPR UK general manager Jane Gorick.
“People have been saying for a long time that it isn’t healthy for one company to have such a monopoly in the market. Now they are putting their money where their mouths are.”
LPR is budgeting for a further 500,000 pallets next year, said Gorick. “We are in discussions with several of the major players now about deals in 2005.”
Under the deal with Kimberly-Clark, LPR will provide pallets to ship coloured Andrex tissue from Kimberly-Clark’s Northfleet mill to customers nationwide.
LPR went head to head with Chep when it entered the UK in 2001, picking up business from suppliers including Northern Foods and Jordans.
Under its ‘one-way-trip’ model, LPR takes responsibility for pallet delivery to suppliers’ factories, collection from retailers’ RDCs, and repair.
By contrast, Chep primarily operates a ‘one for one exchange’ model, whereby manufacturers take responsibility for administering their own pallet pools.
Pic - 24784
Words -
The agreement, which represents almost a third of Kimberly-Clark’s UK pallet business, will double LPR’s UK pool to a million pallets and give other top brands the confidence to switch from market leader Chep, said LPR UK general manager Jane Gorick.
“People have been saying for a long time that it isn’t healthy for one company to have such a monopoly in the market. Now they are putting their money where their mouths are.”
LPR is budgeting for a further 500,000 pallets next year, said Gorick. “We are in discussions with several of the major players now about deals in 2005.”
Under the deal with Kimberly-Clark, LPR will provide pallets to ship coloured Andrex tissue from Kimberly-Clark’s Northfleet mill to customers nationwide.
LPR went head to head with Chep when it entered the UK in 2001, picking up business from suppliers including Northern Foods and Jordans.
Under its ‘one-way-trip’ model, LPR takes responsibility for pallet delivery to suppliers’ factories, collection from retailers’ RDCs, and repair.
By contrast, Chep primarily operates a ‘one for one exchange’ model, whereby manufacturers take responsibility for administering their own pallet pools.
Pic - 24784
Words -
No comments yet