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Accommodating increasing volumes, seasonal peaks and promotional activity
XPO Logistics has secured a five-year warehousing and distribution contract with frozen food retailer Iceland. With a turnover of £2.7 billion in 2015, Iceland currently has 850 stores and a growing network of new ‘out-of-town’ Food Warehouse outlets throughout the UK.
To help Iceland meet its growth targets, including the opening of up to 40 new stores year-on-year, XPO Logistics has developed a supply chain solution that combines Iceland’s dedicated network with the capacity of XPO Logistics’ shared-user facilities to accommodate increasing volumes, seasonal peaks and promotional activity.
XPO Logistics will manage Iceland’s distribution centres in Warrington, Enfield, Livingston and Swindon. The scope of responsibilities includes 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 Logistics as part of a phased Transfer of Undertaking Protection of Employment (TUPE) process.
In addition, XPO Logistics will manage Iceland’s temperature-controlled fleet of 320 tractor units and 450 trailers, and expects to create further operational efficiencies for Iceland by implementing an integrated inbound supply chain platform that leverages the retailer’s supplier relationships.