XPO wins Costco’s reverse logistics handling

XPO Logistics has been awarded a new contract with Costco Wholesale UK Limited to manage the company's reverse logistics for its 28 warehouses in the UK. The contract will allow Costco to benefit from XPO's extensive logistics network and global experience in handling retail returns and recycling.

Under the terms of the agreement, XPO will receive and unload vehicles carrying store waste, handle and load shipping containers with OCC and 98:2 plastic, and securely dispose of electrical and electronic waste. In addition, XPO will process returnable transit packaging, recycle scrap metal and hard plastics, and dispose of recycled office materials and waste wood.

Gavin Williams, business unit director – consumer and reverse logistics at XPO Logistics, said: "Our Lutterworth site is a complete one-stop-shop solution for Costco. We can receive our customer's vehicles 24/7, with a 30-minute average vehicle turnaround. Our longstanding experience with reverse logistics for major retail brands, as well as our scale and capacity, allow us to provide best-in-class results for Costco. We are delighted to be working with them."

Ian Chalmers, imports and logistics director at Costco, said: "There were clear benefits for us when choosing XPO Logistics. We now have access to numerous routes across the XPO network, and the Lutterworth site offers us the ability to roll vehicles in and out within structured times, avoiding long queues. This flexibility, and the close proximity of Lutterworth to our new distribution depot in Crick, has reduced our vehicles' mileage and added a great deal of value."