Kuehne + Nagel is transforming its Manchester DC, introducing dual fuel vehicles and cutting trunk miles since winning more business from hotel and restaurant group Whitbread.

Whitbread has extended its relationship with Kuehne + Nagel for five years, in a deal will see it handle over 34 million cases of food and non-food products per year for chains including Costa Coffee, Premier Inn, Brewers Fayre and Beefeater.

Under the renewed contract, Whitbread will work with the operator to convert its existing ambient DC in Trafford Park, Manchester, into a 165,000ft² multi-temperature site, two years ahead of schedule.

K+N is also removing the majority of bulk trunk movements by using the Trafford Park DC to cover the North and its Wellingborough, Northamptonshire, site to cover the South.

It also plans to introduce dual fuel tractor units into its fleet on behalf of Whitbread, after a trial saved 16 pence per mile and saw a 15% reduction in CO2. It plans to set up re-fuelling stations throughout its trunking network, including a station at its Wellingborough DC.

K+N business unit director Mark Jenkins said: “Working together, K+N and Whitbread have achieved targets ahead of schedule and we are now focused on the future. I am delighted with the strength of our collaboration.”

It began delivering for the group in 2008, when Whitbread fully outsourced its logistics to K+N.

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