XPO Logistics has driven down costs to record levels in the first six months of signing a three-year deal with building materials group Etex.

The deal sees XPO distribute “several hundred thousand” tonnes of products each year - predominantly full truck load of plasterboard, metalwork and bonding for the construction industry.

The contract, which was fully signed in January 2020 after a year's trial, has seen XPO put together an integrated, digitally managed network to meet Etex’s particular needs in the UK.

Under the partnership, XPO’s fleet delivers a wide variety of materials to builders’ merchants and building sites from manufacturing plants in Bristol and Ferrybridge, and supports distribution centres in Basildon and Grangemouth.

XPO also manages seasonal variations in demand by providing additional warehouse storage to stockpile finished goods.

The contract is managed by an experienced XPO team supported by 60 staff who transferred to XPO under TUPE as part of the agreement.

Asked how the company had performed in the first six months a spokeswoman told motortransport.co.uk: “Our customer benefits by having the lowest cost to serve and enhance delivery performance achieved by flexing core and subcontracted resource.

“We also implemented XPO track and trace and pre-alert notification to improve customer service proposition to Etex’s customers. Etex also utilises the wider XPO transport business to support volume flex and reduce cost.”

Paul Noble, Etex regional operations manager for North Europe, said: “We put our customers at the heart of everything we do, and XPO’s transport solution enables us to serve them more effectively, enhancing delivery performance and improving customer satisfaction.

“In XPO, we’ve found a partner who adds real value to our offering, with the expertise and resources needed to support our business as it continues to grow.”

Dan Myers, XPO UK and Ireland MD for transport said: “The strong collaboration between Etex and XPO has created a productive relationship. Drawing on our combined experience in the construction sector, the team is delivering cost savings and performance efficiencies for Etex with a solution tailored to provide superior customer service across the UK.”