This move to the CHEP pooling model makes sound economic and environmental sense for us.

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1 Building Materials United Kingdom Johnson Tiles This move to the CHEP pooling model makes sound economic and environmental sense for us. Adam Bellis, Logistics Director, Johnson Tiles

2 Your CHEP regional office Village Way The Village Trafford Park Manchester M17 1HR United Kingdom Tel: Fax: CHEP Service Centres in the UK and Eire

3 How the power of CHEP pallet pooling can benefit your business A Brambles Company

4 Solving the problems of the white-wood pallet system: how CHEP cuts costs and hassle for you and your business What is CHEP? CHEP is the world s leading provider of pooled supply chain equipment. We operate the biggest pallet pool in Europe, with over 112 million pallets in circulation across 32 countries and 315,000 delivery points. We have over twice as many service centres as our nearest competitor and10 times the staff, giving you an unrivalled level of service and support. How the CHEP pooling system works 1 How could CHEP pooling benefit your business? Pooling enables you to rent and share equipment rather than having to buy and recover it after deliveries. It reduces the costs and hassle associated with pallet management, and frees up capital for you to invest in your core business. CHEP pooling involves rigorous quality assurance processes, which ensure you can rely on our platforms to perform safely and reliably and in harmony with your automated systems. What s more, CHEP s scale means the right equipment is always available in the right quantities, even when demand peaks unexpectedly. How we help you manage costs The cost of white-wood pallets is often unpredictable, fluctuating by the month. Plus you need to factor in your transport costs, as well as considerable pallet tracking, admin and replacement costs. By contrast, CHEP managed pallet pooling gives you fixed, transparent prices. And the headaches of pallet collection and administration are removed: CHEP takes care of it all, cutting costs and hassle. Only CHEP: Our network of 234 service centres across Europe means the average distance to a CHEP Service Centre is only 134km. That means equipment travels shorter distances, cutting emissions as well as costs. Manufacturer 3 CHEP Service Centre Retailer 1. Use CHEP pallets to move goods across your supply chain and we can take care of all your pallet management needs. 2. If the companies that receive your deliveries are CHEP clients, they can reuse the pallets for their own deliveries. Alternatively, the pallets can be returned to you or sent to CHEP for servicing. 3. With our One Way Trip service, we ll collect every pallet from its delivery point, inspect it and, if necessary, repair it before making it available to you again for reuse. We invented pallet pooling 60 years ago and it remains the most efficient, cost-effective and environmentally friendly platform solution available 2

5 Blue versus white: how the advantages of pooling stack up You pay for equipment up front, whether you end up using it or not. Managing the recovery and storage of pallets takes time and effort. Costs Renting equipment means you only pay for what you use while you re using it. CHEP ends the risk and admin burden of pallet ownership. Small suppliers may not be able to provide you with the equipment you need to meet sudden peaks in demand. Availability CHEP s scale means you ll get the equipment you need, when and where you need it, no matter what happens to demand. Pallet quality varies from one supplier to another, so failures, product damage and production-line delays are more likely. Quality A rigorous inspection and repair process keeps quality consistent. Pallets last up to 10 times longer than the white-wood equivalent*. Standards vary, increasing the risk of platform failure and the amount of hazardous movement required in delivery yards. Safety CHEP pallets conform to industry standards. They are quality-assured to reduce the risk of failure and the need for movement. Up to 25% of your pallet stock must be kept in reserve for deliveries and exchanges, as you wait for other pallets to be recovered. Storage As little as 5% of your pallet stock needs to be kept in reserve; CHEP supplies pallets whenever and wherever you need them. Palletised goods may need additional packaging and inspection to reassure supply chain managers and satisfy retailers. Reliability Rigorous quality assurance means CHEP pallets are trusted by supply chain managers and more readily accepted by retailers. Timber sources are difficult to verify and pallet lifespans are lower on average. Disposal of waste wood is your responsibility. Sustainability Standards are consistent, with all timber certified sustainable. CHEP takes care of disposal and nothing ends up in landfill. White-wood pallets CHEP managed pooling * Based on an independent, peer-reviewed Life Cycle Assessment comparing CHEP pooled Euro pallets with the white-wood equivalent

6 Our main pallet types B1210A: industry standard pallet, 1200 x 1000mm A high-quality wooden platform with four-way entry design. Ideal for FMCG, beverages and hardware, among other products. B0806A: wood and metal half pallet, 800 x 600mm Designed for in-store pallet display. Also available in injectionmoulded plastic for hygienic areas. B1208A: Euro pallet, 1200 x 800mm A general-purpose pallet with four-way entry. Also available in plastic for transporting raw materials, and in reusable cardboard. P0604A: plastic display quarter pallet, 600 x 400mm Good for automated systems. With nestable design, for up to 50% space saving. Also available with wheels and a brake. Retailers welcome CHEP pallets Retailers demand high-quality pallets, and that s what we supply. We maintain pallet quality by inspecting them when they re returned to us, and repairing or replacing them when necessary. Plus, our pallets always conform exactly to our standard sizes. That s why so many large retailers accept them. In the UK that includes ASDA, Tesco, Sainsbury s, B&Q and Waitrose, and many others. What next? If want to find out how much CHEP can save your company, contact us on +44 (0) We ll use our Power of Pooling calculator to demonstrate in just a few minutes how much carbon and wood your white-wood system uses, the volume of landfill waste it generates and how much it costs. Then we work out your savings with CHEP in all those areas.