British frozen foods retailer Iceland has signed a five-year warehousing and distribution contract with XPO Logistics.
Iceland, which was recently named Britain’s best online store by a Which? supermarket survey, boasted a turnover of £2.7 billion in 2015. As well as its online presence, it has 850 stores across the UK, alongside a growing network of Food Warehouse outlets.
To help Iceland meet its growth targets, which include the opening of up to 40 new stores year-on-year, XPO Logistics has created a supply chain solution that combines the retailer’s own dedicated network with the capacity of its shared-user facilities to accommodate increasing volumes, seasonal peaks and promotional activity.
As part of the deal, XPO Logistics will manage Iceland’s distribution centres in Warrington, Enfield, Livingston and Swindon, and will take responsibility for warehousing activities, from product receipt to nationwide store distribution.
The logistics firm will also manage Iceland’s fleet of 320 tractor units and 450 trailers, and says its will create further operational efficiencies by implementing an integrated inbound supply chain platform that leverages the retailer’s supplier relationships.
"XPO Logistics shares our values when it comes to putting people at the forefront of everything we do," commented Iceland supply chain director, Nigel Morley.
"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."
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Jenny Whelan. To subscribe to ESM: The European Supermarket Magazine, click here.