XPO Logistics has secured a five-year warehousing and distribution contract with UK frozen food retailer, Iceland.
With a turnover of £2.7bn in 2015, Iceland currently has 850 stores and a growing network of new ‘out-of-town’ Food Warehouse outlets throughout the UK.
According to the announcement, XPO Logistics has developed a supply chain solution tailored to help Iceland meet its growth targets, including the opening of up to 40 new stores year-on-year. The solution is expected to combine Iceland’s dedicated network with the capacity of XPO Logistics’ shared-user facilities to accommodate increasing volumes, seasonal peaks and promotional activity.
XPO Logistics is expected to manage Iceland’s UK distribution centres in Warrington, Enfield, Livingston and Swindon. The scope of responsibilities is to include warehousing activities ranging from product receipt to nationwide store distribution, as well as a number of primary collections. All 1,900 workers at the four sites are expected to transfer to XPO Logistics as part of a phased Transfer of Undertaking Protection of Employment (TUPE) process.
In addition, XPO Logistics is expected to manage Iceland’s temperature-controlled fleet of 320 tractor units and 450 trailers, and expects to create further operational efficiencies for Iceland by implementing an integrated inbound supply chain platform that leverages the retailer’s supplier relationships.
Iceland supply chain director Nigel Morley, said, “XPO Logistics shares our values when it comes to putting people at the forefront of everything we do.” He added, “This synergy, combined with XPO’s ability to deliver a flexible and scalable supply chain solution, will help us meet our growth objectives, both now and in the future.”
Source: XPO Logistics