XPO Logistics has secured a new long-term reverse logistics contract with supermarket retailer Asda Walmart, after delivering a number of cost-cutting innovations.

Under the new contract, XPO Logistics will continue to manage nine Asda service centres for the Leeds-based retailer and wash millions of units of returnable transit equipment, as well as repairing it when necessary.

The new deal also sees XPO Logistics provide additional services including a zero waste to landfill (ZWTL) solution to help Asda meet its recycling goals for more than 600 stores in the UK.

Proprietary XPO Logistics technology developed with Asda has also been developed, which tracks the assets and manages hundreds of supplier accounts.

Other innovations developed through the collaboration include an improved design for crate wash machines that reduces downtime and increases wash speed by 20%; an automated baler design that increases efficiency and reduces power consumption by 30%; and the automation of food waste processing to improve productivity and further support Asda’s ZTWL policy.

The company said that many of the additional services allow the retailer to reduce supply chain costs by bringing more logistics functions in-house.

Gavin Williams, XPO Logistics business unit director, said: “We are proud of our long-standing relationship with Asda and the numerous sustainability initiatives we have put in place at the service centres – for example, rainwater harvesting and intelligent lighting.

"Asda has recognized our commitment to continuous improvement by honouring our team with the Asda Supply Chain Collaboration award for the past two years.”

Jon Parry, Asda logistics vice president, said: “The strong working relationship between Asda and XPO Logistics has enabled us to deploy significant waste innovations and achieve cost efficiencies.”

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