The Co-operative Group plans to close its Huntingdon, Cambridgeshire, distribution centre later this year in a bid to improve efficiency and make its transport activities more cost-effective.
Work carried out by the DC, which the supermarket hopes to close by the end of the summer, will be transferred to its depots in Andover, Thurrock and Castlewood, Derbyshire.
A spokesman for The Co-operative Food said the primarily own-account operator runs around 50 vehicles from the site. It does occasionally use third-party operators, including Wincanton.
The spokesman said: “Due to ongoing surplus capacity at our Huntingdon depot, and in order to drive efficiencies and deliver a cost-effective quality service to our stores and customers, regrettably we are proposing to close the depot.
“This proposal is in no way a reflection on the commitment and hard work of all the staff involved. The trade unions are being consulted about these proposed changes and we will keep colleagues fully updated.”
A Wincanton spokeswoman confirmed that it provides a transport and support service for The Co-operative, which will be moved to a site nearby.
"Should the proposal go ahead, the associated transport and support services that are provided by Wincanton, will be transferred to the Co-operative's site at Cardinal, approximately 4 miles away," the spokeswoman said.
"Co-operative is a valued, long-term customer of Wincanton and the two companies continue to be partners in the management of the Co-operative supply chain".
Some 123 roles are expected to be made redundant as a result of the closure and the supermarket intends to help those affected find alternative positions within the group, or with another employer.
The proposal follows the closure of sites in Portbury, Bristol last April and in Chelston, Somerset in 2012.