XPO wins chilled distribution deal with Tesco

XPO Logistics has been awarded a multi-year contract by Tesco to manage the retailer’s chilled distribution to stores in the North West.

Under the new agreement XPO will be responsible for temperature-controlled transport and will use XPO’s fleet and drivers, who will work from Tesco's distribution centre in Widnes, Cheshire.

The two companies will also collaborate on developing a plan for a carbon-neutral or carbon-negative transport solution that supports Tesco's goal of becoming net-zero carbon by 2050.

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This latest deal deepens XPO’s links with Tesco. The logistics company has provided non-food transport services to Tesco UK for over 25 years, deploying a dedicated fleet of tanker trucks and specially trained drivers to collect fuel at 15 refineries and deliver it to nearly 500 consumer fuel stations across the UK.

Dan Myers, XPO Logistics MD of UK and Ireland, said, "Tesco and XPO have built trust between our two businesses over many years by working together to ensure a robust supply chain.

“We believe this has created a solid foundation for the future development of our partnership. Providing transport operations at Widnes distribution centre is a natural evolution in our relationship, and we look forward to supporting Tesco in delivering this next phase in their logistics strategy."