BT Group (BT) and GXO Logistics have announced a partnership to outsource and transform part of BT Group’s supply chain across the UK as part of a new, long-term relationship.
BT Group is a UK telecommunications and network provider and a provider of global communications services and solutions, serving customers in 180 countries. Its principal activities in the UK include the provision of fixed voice, mobile, broadband and TV (including Sport) and a range of products and services over converged fixed and mobile networks to consumer, business, and public sector customers.
BT’s supply chain provides logistics support across all of BT Group’s operations, including supporting the Group’s fixed and mobile network build activities by transporting stock and replenishing supply stores.
The new partnership with GXO forms part of BT’s ongoing strategy to simplify and modernise its business. BT will be outsourcing its core warehouse and transport capabilities, while ensuring that the Group’s next generation network build plans remain on track.
For BT supply chain colleagues in warehouse, transport, and some support roles – around 300 colleagues in total – there will be a proposed transfer to GXO under a Transfer of Undertakings (Protection of Employment) or “TUPE” agreement. A further 300 third-party agency support roles will continue their work under the terms of the partnership.
Managing Director of GXO UK and Ireland Gavin Williams said: “GXO will be supporting BT’s supply chain as it delivers its ambitious consumer and engineering activities. We’re going to deploy our technological expertise for a new end-to-end systems infrastructure that supports BT’s growth in fibre technology across the U.K.”
In 2021, as part of its wider modernisation programme, BT Group announced improvements to its supply chain and procurement operations, including establishing BT Sourced as a new, standalone procurement company within the Group alongside its supply chain business.
In November 2021 the company announced that it had achieved its £1bn cost savings target 18 months early and brought forward its FY25 target for £2bn of savings to FY24.
Pelipod, the UK’s secure, storage box distribution and collection service, which is wholly owned by BT Group, and BT’s final mile supply chain operations, are outside the scope of this new partnership agreement with GXO.
Source: GXO
