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Dairy Crest enters discussions to form a strategic partnership with Fowler Welch 09 March 2016

Extending NDC’s logistics operations to other chilled food manufacturers

Dairy Crest has entered into discussions to form a strategic partnership with Fowler Welch at its National Distribution Centre (NDC) in Nuneaton. The partnership is expected to be in place by the beginning of June 2016, and will enable Fowler Welch to take over the operation of all transport operations at the Dairy Crest site in Warwickshire.

The partnership will build on the knowledge of both businesses to optimise logistics operations at the state of the art distribution centre. Fowler Welch, which already supplies warehouse and transport operations for major retail customers, will work with Dairy Crest to provide storage and network solutions to manufacturers and growers throughout the Midlands.

Dairy Crest will continue to operate the warehouse and other site functions including gatehouse, control room, customer services and stock management. It will maintain control of storing and distributing its stable of brands, including Cathedral City cheese, Country Life butter and spreadable, and Clover spreads.

Subject to employee consultation and completion of the agreement negotiations, around one hundred Dairy Crest transport department employees will transfer to Fowler Welch.

Under the proposed long-term partnership, Fowler Welch will work with Dairy Crest to maximise the capacity of the site. The partnership will build on current in-house operations and extend the site’s industry leading warehousing and transport operations to other chilled food manufacturers. The Dairy Crest NDC, located at Bermuda Park, Nuneaton is ideally located for manufacturers and retailers throughout the country.

Since the Sale of its Dairies business in December 2015, Dairy Crest has been looking to work collaboratively with third parties to ensure the efficient use of its supply chain assets. By entering into this proposed strategic partnership with Fowler Welch, it will have an attractive proposition for new and existing clients, that builds on the strengths and services of both organisations.

The two companies have collaborated to develop a unique solution that will allow them to maximise the value of the site.

For Fowler Welch, the partnership is a clear demonstration of its philosophy of listening, responding and delivering. The deal helps it achieve a strategic goal of having a logistics platform in the Midlands offering manufacturers and growers national reach to all retailers on a shared-user basis.