XPO Logistics has secured a multi-year contract with Tesco to manage the supermarket’s chilled distribution to stores in the north west.
Under the new agreement, XPO will handle temperature-controlled transport using its own fleet and drivers, which will journey from Tesco’s distribution centre in Widnes, Cheshire, to stores in the region.
The two companies said they would also “collaborate on developing a plan for a carbon-neutral or carbon-negative solution” to the logistics operation, which will support Tesco’s goal of becoming net zero carbon by 2050.
Dan Myers, MD UK and Ireland for XPO Logistics, said the new deal “has created a solid foundation for the future development of our partnership”.
XPO has provided non-food transport for Tesco in the UK for more than 25 years, chiefly providing tankers and drivers to carry fuel between 15 refineries and 500 Tesco filling stations across the UK.
“Tesco and XPO have built trust between our two businesses over many years by working together to ensure a robust supply chain,” Myers said. “Providing transport operations at Widnes distribution centre is a natural evolution in our relationship, and we look forward to supporting Tesco in delivering this next phase in their logistics strategy.”
It is understood Tesco had previously been working with Eddie Stobart on chilled distribution in the north west.
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