Iceland has signed a three-year contract with CHEP to receive 100,000 pallets a year at four of its main distribution centres.

The pallets are due to support container devanning operations at facilities in Livingston in Scotland and in Enfield, Swindon and Warrington in England, reports Logistics Manager.

The food retailer's international business is also due to benefit from the new contract signing with CHEP.

Iceland's contracts and commercial manager Dave Rowlands said that the company chose to sign with CHEP as it "understands both our business model and our supply chain very well".

He added that he looks forward "to exploring other initiatives that will improve the efficiency of our supply chain" with CHEP.

These other initiatives include CHEP's transport collaboration programme. This aims to bring all of the workforce in the supply chain together to reduce the empty running of vehicles.

Manufacturers, retailers and logistics service providers will do this by identifying areas that can be reduced or removed to improve the efficiency of transport.