This new agreement builds on XPO’s 25-year history with the retailer in providing non-food transport services. XPO will now be responsible for temperature-controlled transport using XPO fleet and drivers dispatched from Tesco's distribution centre in Widnes, Cheshire.
Dan Myers, XPO Logistics UK and Ireland managing director 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.”
XPO will also work with Tesco to develop a plan for a carbon-neutral or carbon-negative solution that supports the supermarket’s sustainability objectives.
Tesco’s deal with XPO followed continued reports that soaring commodity prices were putting increased strain on the food and drink supply chain.
Strained supply chain
The Federation of Bakers wrote to secretary of state for environment, food and rural affairs George Eustice to warn of a pending bread shortage and serious threats to the viability of bakery businesses without Government support.
Last week (31 March) saw free range egg farmers called for major UK retailers to immediately increase the price of a dozen eggs in their shops by 40p to avert a catastrophe in the sector.
Meanwhile, Bulk road tanker specialist Abbey Logistics has been awarded a new contract to transport all bulk flour produced at Premier Food’s mill in Andover to their bakeries throughout the UK.
As part of the deal Abbey will provide nationwide transport and delivery into Premier Foods bakeries, with two of their manufacturing sites using its fleet of food grade bulk powder road tankers.