XPO Logistics extends award-winning relationship with Asda

National supermarket retailer Asda Walmart has renewed its long-term agreement with XPO Logistics for reverse logistics operations. Under the new contract, XPO Logistics will continue to manage nine Asda service centres for the Leeds-based retailer.

XPO Logistics washes millions of units of returnable transit equipment each year for Asda and repairs them when necessary.

XPO Logistics has worked with Asda to introduce a wide range of innovations in the service centres, including a 'zero waste to landfill' (ZWTL) solution that helps Asda meet its recycling goals for more than 600 stores in the UK.

Many of the solutions have been custom-developed through this relationship, enabling the reduction of costs along the supply chain by bringing more logistics functions in-house. Proprietary XPO Logistics technology developed with Asda tracks the assets and manages hundreds of supplier accounts.

Gavin Williams, business unit director consumer and reverse at XPO Logistics, said: "We are proud of our long-standing relationship with Asda and the numerous sustainability initiatives we have put in place at the service centres – for example, rainwater harvesting and intelligent lighting. Asda has recognized our commitment to continuous improvement by honouring our team with the Asda Supply Chain Collaboration award for the past two years."

Additional innovations developed through this collaboration include an improved design for crate wash machines that reduces downtime and increases wash speed by 20%; an automated baler design that increases efficiency and reduces power consumption by 30%; and the automation of food waste processing to improve productivity and further support Asda's ZTWL policy.

Jon Parry, Asda logistics vice president, said: "The renewal of our contract with XPO Logistics reflects our determination to be environmentally sustainable across our entire business. The strong working relationship between Asda and XPO Logistics has enabled us to deploy significant waste innovations and achieve cost efficiencies. We are delighted to extend this award-winning collaboration."