FDBusiness.com

Cepac has provided Nestle UK with over one hundred million corrugated packs in the past three years without any non-conformance issue.

The award recognises Cepac’s contribution out of more than 300 of Nestle UK direct suppliers who supply into the 12 UK Nestle manufacturing sites.

Cepac was founded over 16 years ago by the $10bn Dubai-based and family-owned HSA Group. It has five plants in UK, at Doncaster, Darlington, Rotherham, Rawcliffe and Alfreton.

Rod Ainslie, Cepac managing director, said the award was a “testament to the firm’s tireless quest for innovation and improvement”.

“We’re absolutely delighted to be named Nestle’s top supplier ahead of such a large field of suppliers. The key to this relationship is our understanding of Nestle’s desire to create the very best packaging for their products and to set the benchmark for performance throughout the supply chain.”

He added working closely with a multinational such as Nestle has allowed Cepac to pioneer numerous developments together, including making full use of technology.

“You’re only ever as good as the people who use the technology and we invest a lot in ensuring we have great people in every area of the business,” he said. “We have technologists working on the development of the most advanced materials, talented printers, operators and dedicated drivers involved in the whole process, making multiple deliveries, seven days a week, without ever dropping the ball – this award is down to the whole team.”

Cepac has been working with Nestle on the Dolce Gusto packs since 2007 and delivered in excess of 32 million Dolce Gusto wraparounds in 2015, with no quality issues and 100% On time in full (OTIF), correct quantity, perfect service level.

Emma Canavan, head of direct procurement, Nestle UK & Ireland, said: “Our winner was Cepac who delivered 32 million packs in 2015, achieving a fantastic 100% VES, with Zero quality complaints. They have successfully implemented innovation, giving our brands a point of difference versus competition and strengthening the Nestle brands. Working with the Nestle teams, understanding our challenges and finding technical solutions they have fuelled the Virtuous Circle, whilst driving improvements in sustainability.”

Ainslie told Packaging News when Cepac was first established 16 years ago there were a dozen major competitors – whereas now there is a very small number, which he described as an ‘unprecedented’ rate of consolidation within the corrugated industry.

Cepac has been part of this acquisition trend – having doubled in size and undertaken four acquisitions over the course of two years.

“The market for high quality graphics combined with flexible and responsive service is expanding fast. We believe that there will always be opportunities for those capable of pioneering new standards in packaging and print.”

He did not appear overly concerned by the threat of bigger companies snapping up market share.

“We consider that we are one of the top corrugated companies in terms of setting high standards and are proud of our role as the leading independent with our successful record of pioneering innovation. There are outstanding opportunities for an independent player with a differentiated offering. Our customers are extremely supportive and acknowledge that we have introduced another dimension to their business and to the UK market. Having pioneered performance packaging we consider that there is scope to introduce new standards of print with respect to both quality and service.”

He added that the Nestle award underlined the company’s position, and insisted that Cepac was able to set new standards by means of focussed development.

“New technology will transform the corrugated industry,” he added, and said the company would shortly announce an investment to maintain expansion.