Iceland chooses XPO Logistics to support future growth

XPO Logistics has secured a five-year warehousing and distribution contract with leading frozen food retailer Iceland.

With a turnover of £2.7 billion in 2015, Iceland has recently been named Britain’s best online store in the annual Which? supermarket survey. The retailer has also won The Sunday Times’ best big companies to work for in the UK twice in the last five years. In addition to its online presence, Iceland currently has 850 stores and a growing network of new ‘out-of-town’ Food Warehouse outlets throughout the UK.

To help Iceland meet its growth targets, including the opening of up to 40 new stores year-on-year, XPO Logistics has developed a supply chain solution that combines Iceland’s dedicated network with the capacity of XPO Logistics’ shared-user facilities to accommodate increasing volumes, seasonal peaks and promotional activity.

XPO Logistics will manage Iceland’s distribution centres in Warrington, Enfield, Livingston and Swindon. The scope of responsibilities includes warehousing activities ranging from product receipt to nationwide store distribution, as well as a number of primary collections. All 1,900 workers at the four sites will transfer to XPO Logistics as part of a phased Transfer of Undertaking Protection of Employment (TUPE) process.

In addition, XPO Logistics will manage Iceland’s temperature-controlled fleet of 320 tractor units and 450 trailers, and expects to create further operational efficiencies for Iceland by implementing an integrated inbound supply chain platform that leverages the retailer’s supplier relationships.

“XPO Logistics shares our values when it comes to putting people at the forefront of everything we do,” said Iceland supply chain director Nigel Morley. “This synergy, combined with XPO’s ability to deliver a flexible and scalable supply chain solution, will help us meet our growth objectives, both now and in the future.”

Richard Cawston, managing director, supply chain – UK and Ireland for XPO Logistics, said: “We’re delighted to be working with Iceland and believe that our significant experience working with major food retailers will be invaluable in supporting our customer’s expansion. We also look forward to welcoming the colleagues who will be joining XPO Logistics over the coming months.”