XPO Logistics has ousted DHL from its warehousing and distribution deal with frozen food retailer Iceland.
The five-year deal to manage Iceland's distribution and warehousing operation, estimated to be worth approximately £500m, sees DHL replaced by XPO Logistics after an eight-year run. It is the largest contract XPO Logistics, previously Norbert Dentres-sangle, has landed in Europe.
XPO Logistics will oversee Iceland's DCs in Warrington, Enfield, Livingston and Swindon, running all warehousing activities, nationwide distribution to Iceland's 850 stores, primary collections and Iceland's temperature-controlled fleet of 320 tractor units and 450 trailers.
Plans for an integrated inbound supply chain platform to leverage the retailer's supplier relationships are also in progress. Iceland will also have use of XPO's shared-user cold stores to support the expansion of its 850-strong store portfolio.
Iceland will also make use of a number of XPO depots across the UK to manage peak periods of demand, both seasonal and those created around promotional activity.
A spokeswoman said: "This is key as the brand expands its Food Warehouse presence, which carries more lines than Iceland stores, in the UK." Food Warehouse is a 12-strong chain of warehouse-style stores in out-of-town retail parks new to the business.
Iceland supply chain director Nigel Morley said: "XPO Logistics shares our values when it comes to putting people at the forefront of everything we do. This synergy, combined with XPO's ability to deliver a flexible and scalable supply chain solution, will help us meet our growth objectives, now and in the future."
Richard Cawston, XPO Logistics UK and Ireland supply chain MD, said XPO's experience working with major food retailers will be invaluable in supporting Iceland's expansion.
"We look forward to wel-coming the colleagues who will be joining XPO Logistics over the coming months," he said.
No redundancies are planned, with 1,900 DHL staff to transfer under Tupe regulations to XPO, starting with the Warrington depot in May and Swindon in September.
