The Lego Group is phasing out its use of the White Pallet Exchange system in favour of CHEP pallet pooling services across its operation after recently centralising its warehousing and distribution activities across central Europe.
The company now uses CHEP blue pallets for deliveries to Germany, the UK, Spain, Portugal and France and by doing so hopes to improve efficiency, helping it to provide a better level of service to customers.
Mr. Bo H. Kristensen, logistics consultant, Europe & Asia at the Lego Group, said: “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.”
The environmental implications were also a consideration for the toy company. Jesper Touboel, the Lego Group’s director, customer logistics, added: “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”.
The Lego Group is headquartered in Billund, Denmark and has subsidiaries and branches throughout the world.