XPO Logistics has announced the renewal of its relationship with the Co-op, the UK grocery non-discounter.
Under the long-term contract extension, XPO Logistics will continue to manage the Co-op's food transport operations from Andover and Avonmouth to over 1,000 stores across the South of England and Wales, as well as its regional planning center servicing both depots.
With a focus on convenience retailing, the Co-op's supply chain operation is atypical of many large retailers. Its locations in the heart of communities often necessitate the use of smaller vehicles, and its delivery strategies are designed to satisfy both environmental health requirements and customer demand for chilled, ambient and frozen goods.
A dedicated network of approximately 500 XPO Logistics drivers will deliver approximately 100 million cases of Co-op goods each year. XPO Logistics operates a fleet of 180 tractor units, 300 trailers and 151 rigid vehicles for the Co-op, with capabilities spanning all temperature bands.
"This contract extension is a testament to the strong performance, greater efficiencies and substantial cost-saving benefits XPO Logistics has delivered over the past five years," commented Jon Paul Brown, head of transport at the Co-op. "We were particularly impressed with the team's approach to continual improvement initiatives. These will be developed and tested locally for roll-out across our wider network to deliver a compelling, convenient and co-operative shopping experience for our millions of members and customers."
Chris Hyde, business unit director of ambient food and drink at XPO Logistics, said, "Our longstanding collaboration with the Co-op has given us an excellent understanding of their customer expectations and operational requirements. We're delighted to continue working together and are keen to deliver even greater supply chain enhancements over the coming years."