GXO has delivered "substantial" cost savings through increased efficiencies in the first year of its contract to manage telecommunications giant BT Group's logistics and transport operations.

BT Group outsourced its logistics to GXO last year as part of its wider strategy to simplify and modernize its operations. The deal saw more than 300 staff transferred from BT to GXO.

The company said this week that the partnership has already exceeded expectations by delivering "substantial" cost savings through increased efficiency, adding that further continuous improvement projects are in the pipeline.

In addition to optimizing BT Group’s warehousing, GXO also operates its transport, stock transfer and replenishing collection points.

The company added that it has also created more efficient routes to reduce road miles and carbon emissions, and is currently upgrading the fleet under a long term plan.

As part of the partnership, GXO also operates three warehouses in Lutterworth, Milton Keynes and Northallerton.

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As well as supporting BT Group’s engineering business, GXO also manages logistics and reverse logistics of consumer electronics for EE, BT Group’s mobile network.

Gavin Williams, managing director of GXO, UK and Ireland, said: “We’re proud of what we’ve achieved in the first year of our expanded partnership with BT Group.

“GXO’s industry-leading technology, scale and expertise are improving BT Group’s core warehouse and transport capabilities while supporting its ambitious consumer and engineering activities. Our efforts during the first year of our partnership have paved the way to even greater successes in the second year and beyond.”

Cyril Pourrat, BT Group chief procurement and supply chain officer, said, “When we chose to outsource our supply chain operations, we were looking for a logistics market leader to help us deliver exceptional service, sustainable operations and value for our customers and our colleagues.

"GXO has helped us do all that as well as support our growth programme and our plans to build our market-leading next generation network. We look forward to further continuous improvement in our logistics through our successful partnership with GXO.”