Iceland has struck a five-year warehousing and distribution deal with XPO Logistics to help the retailer meet its growth targets, including up to 40 new stores over the next year.
XPO, which agreed to buy Norbert Dentressangle for €3.24bn (£2.4bn) last year, will manage Iceland’s distribution centres in Warrington, Cheshire; Enfield, Middlesex; Livingston, West Lothian; and Swindon, Wiltshire.
Its responsibilities will include warehousing activities ranging from product receipt to national store distribution and “a number of” primary collections.
XPO will also manage Iceland’s temperature-controlled fleet of 320 tractors and 450 trailers.
It 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.
“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, XPO managing director, supply chain, UK and Ireland, said: “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 customers’ expansion. We also look forward to welcoming the colleagues who will be joining XPO Logistics over the coming months.”
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