XPO and Mercedes Benz Parts Logistics agree long-term partnership deal

XPO Logistics has sealed a long-term partnership deal with Mercedes-Benz Parts Logistics to distribute parts to all of the manufacturer’s UK retail and commercial vehicle dealerships.

The logistics firm will operate over 40 routes daily from Mercedes-Benz’s European logistics centre in Milton Keynes and XPO’s overnight-delivery depots in Motherwell, Leigh, Wakefield, Gloucester and Taunton.

As part of the agreement, XPO has committed to investing in 42 new trucks - largely Mercedes-Benz Actros - which will be dedicated to the partnership.

The trucks will be operated by XPO drivers and managed by a dedicated team of the company’s distribution specialists using customised technology.

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The trucks include intelligent networking and fuel efficiency technology and a digital safety system.

Juan Manuel Santiago Mendez, chief executive of Mercedes-Benz Parts Logistics UK, which handles more than 750,000 parts, said: “We believe XPO has the scale, capabilities and expertise required to support our retailers and dealers with reliable distribution.

“They have designed a comprehensive solution to our high standards, and their technology should enhance network visibility.”

Dan Myers, MD of transport in the UK and Ireland at XPO Logistics, said: “The tailored technology solution we are providing will underpin service excellence and support Mercedes-Benz across its UK operations, lowering costs and increasing efficiency from day one.”