Frozen food retailer Iceland signed a three-year-deal with pallet provider CHEP that is now expected to improve the efficiency of the supermarket's supply chain operations.

Iceland expects that its operations will be improved throughout the UK, but also internationally, reports Food Manufacture.

The deal with CHEP includes the supply of 100,000 industry standard pallets a year for Iceland's four main distribution centres in Scotland, north London, Swindon and Warrington.

Iceland is now interested in building on their partnership by adopting the use of CHEP's display pallets.

The supermarket chain also hopes to improve the efficiency of its supply chain thanks to CHEP's transport collaboration programme. This encourages work between manufacturers, logistics providers and others in the supply chain to reduce the empty running of vehicles.

Speaking on the partnership, Iceland's contracts and commercial manager Dave Rowlands said: "We're delighted to cement our relationship for another three years, and look forward to exploring other initiatives that will help improve the efficiency of our supply chain."