Burtons Foods has moved out of primary distribution and outsourced its entire warehousing and transport operation to Exel in a three-year, £30m contract.

The deal, which gives Exel complete visibility over orders coming into Burtons’ factories, may also extend further upstream into Burtons’ raw materials supply chain in future, said Paul Dyer, head of Exel’s shared user business.

A Burtons planning team will be based at Exel’s logistics control tower at Hams Hall in the West Midlands, said Dyer.

“By using our transport management command and control system, we can take a holistic view of the business.”

Exel may also push more volume from other non-competing manufacturers through Burtons’ warehouses.

Although Burtons does not operate factory gate pricing agreements with the multiples at the moment, FGP was a factor in the decision to outsource its transport, added Dyer.