bibby netto

Bibby Distribution has moved into chilled and frozen logistics after securing a three-year contract with supermarket discounter Netto.

The deal will see Bibby provide full frozen, chilled and ambient food logistics for Netto, which opened five stores in the North of England last year and plans a further 10 by the end of 2015.

Bibby will manage stock from a central multi-retailer RDC in Scunthorpe, and will provide a dedicated fleet of multi-temperature reefer trailers with tail-lifts.

The logistics firm added it is able to leverage its fleet capacity by providing Netto with deliveries on multi-vendor, multi-SKU trucks.

As Netto uses display pallets in-store, Bibby Distribution staff will prepare the pallets at the RDC so they can be brought out to the shop floor immediately after delivery.

Duncan Eyre, development director, Bibby Distribution, said: “Our mission is to provide the most efficient possible supply chain solution. That means working closely with Netto to essentially become an integral part of their business. It’s a very different relationship to what might be expected between a 3PL and a retailer and we’re delighted to be able to offer the agility, flexibility and transparency that Netto requires.”

Bibby plans to expand the warehousing space and fleet allocation to keep pace with Netto’s expansion plans, which it said enables the supermarket to avoid upfront investment and only extend its logistics as new stores open.

Netto relaunched in the UK last year through a joint venture between its parent firm, Dansk Supermarked, and Sainsbury’s. It has previously exited the UK market in May 2010 with the sale of more than 190 stores to Asda, at which time C Butt was the incumbent logistics provider.

Bibby Distribution recently announced the appointment of Oliever Hecht as its new MD.