Iceland agrees five-year XPO supply chain deal

Iceland has agreed a five-year warehousing and distribution deal with XPO Logistics, as the frozen food retailer looks to continue growing its store network in the UK.

The supermarket currently has 850 stores and a burgeoning network of new 'out-of-town' Food Warehouse outlets, and XPO says it has developed a supply chain solution that combines the retailer's dedicated network with the its own shared-user facilities.

XPO will manage Iceland's distribution centres in Warrington, Enfield, Livingston and Swindon, with responsibilities including 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 as part of a phased Transfer of Undertaking Protection of Employment (TUPE) process.

Iceland's temperature-controlled fleet of 320 tractor units and 450 trailers will also be overseen by XPO in a move that is expected to create further operational efficiencies for the retailer by implementing an integrated inbound supply chain platform.

Richard Cawston, managing director, supply chain – UK and Ireland for XPO Logistics, 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 customer's expansion."

In 2015 XPO acquired Norbert Dentressangle, a logistics business that had a significant presence in the UK grocery and general merchandise retail sectors.

Click below for more information:

XPO Logistics