XPO Logistics lands deal with UK-based food retailer

Non asset-based 3PL XPO Logistics said this week it has landed a contract with Northampton, England-based frozen food retailer, Iceland.

In order to help Iceland meet its growth targets, which includes the rollout of up to 40 new stores, XPO said it has developed a supply chain offering that meshes Iceland’s dedicated network with XPO’s shared-uses facilities that will be used to accommodate things like increasing volumes, seasonal peaks, and promotional activity.

And XPO will also manage four Iceland distribution centers in Warrington, Enfield, Livingston, and Swindon, with a focus on various warehouse activities, including product receipt, nationwide store distribution, and several primary collections, among others. XPO will also manage Iceland’s temperature-controlled fleet comprised of 320 tractor units and 450 trailers, as well as planning to create more operational efficiencies through the implementation of an integrated inbound supply chain that leverages Iceland’s supplier relationships.

Richard Cawston, managing director, supply chain – UK and Ireland for XPO Logistics, said that Iceland is the biggest single win in the history of XPO Logistics Europe, and reflects the very strong performance of the business across the UK and the continent, as demonstrated in our recent results announcement.

“This exceeds expectations with both our Transport Solutions and Supply Chain business units delivering an excellent performance, achieving their best ever results with +2.6 percent and +10.1 percent revenue growth respectively,” he said. “The UK was the largest contributor to growth amongst European markets in 2015, with revenue up + 15.9 percent.”

What’s more, along with impressive business wins at the end of last year, he said XPO has a strong pipeline with e-commerce in particular driving growth with XPO also enjoying sustained momentum with great levels of customer retention and contract renewals.

“In 2016, we will look at expanding our range of transport services by piloting last mile deliveries for heavy goods, which will also be trialed in Spain, highlighting the value-added synergies we can now provide as part of XPO Logistics,” said Cawston.

XPO’s significant presence in Europe stems from its June 2015 acquisition of Lyon, France-based 3PL Norbert Dentressangle SA for $3.53 billion.

When the deal was first announced in April 2015, XPO Chairman and CEO Brad Jacobs said “[Norbert’s] service offerings very closely mirrors XPO’s, the geographies are complementary, and the service offerings are very similar. They have industry-leading positions in contract logistics and freight brokerage, which are very important parts of XPO’s business. Their contract logistics business brings in $2.8 billion in annual revenue, and we love contract logistics and view it as one of the most attractive parts of the industry because customers value the significant…non-commoditized nature of it and the relationships with customers that span many years.”