XPO Logistics has secured a five-year warehousing and distribution contract with the frozen food retailer Iceland.
To help Iceland meet its targets for growth, including the opening of up to 40 new stores each year, XPO Logistics has developed a supply chain solution that combines Iceland’s dedicated network with the capacity of XPO Logistics’ shared-user facilities to accommodate increasing volumes, seasonal peaks and promotional activity.
The Northampton, UK-based company will manage Iceland’s four distribution centres across the country; the scope of responsibilities includes 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 will transfer to XPO Logistics as part of a phased transfer of undertaking protection of employment process.
In addition, XPO Logistics will 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, it said.
Nigel Morley, Iceland’s supply chain director, said: “XPO Logistics shares our values when it comes to putting people at the forefront of everything we do. 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.”
Richard Cawston, managing director, supply chain – UK and Ireland for XPO Logistics, added: “We’re delighted to be working with Iceland and believe that our significant experience working with major food retailers will be invaluable in supporting our customer’s expansion. We also look forward to welcoming the colleagues who will be joining XPO Logistics over the coming months.”
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