The contract covers inbound transport, warehousing and outbound distribution to customers throughout the UK and Ireland.
Premier Foods will move its multi-site warehousing operations to a single XPO-managed national distribution centre in Tamworth, Staffordshire. XPO expects to manage throughput of approximately two million pallets per year at the dedicated centre, which has the capacity for 80,000 pallets and will be fully operational from mid-2018 following a phased transition programme.
The 650,000 square feet site will employ an estimated 170 workers and be equipped with XPO’s state-of-the-art warehouse management system. Transport services will be handled with a bespoke distribution fleet of approximately 70 vehicles and 200 trailers. XPO will customise its transport management software to ensure that Premier Foods achieves optimal fleet utilisation at all times.
XPO Logistics’ Chris Hyde, business unit director–supply chain in the UK, said: “This is an exciting and significant win for us. Our work with Premier Foods will be supported by the scale and flexibility of our operations in the UK, allowing us to provide a fully integrated and seamless solution to Premier Foods throughout their network.”
Premier Foods’ Paul Thompson, operations director, said: “The team at XPO Logistics have demonstrated the capabilities to deliver a cutting-edge solution based on extensive experience and the kind of scale we require. This strategic integration will be very important in helping us service our customers more effectively. We’re delighted to begin working together, and we look forward to building a long-term relationship with XPO.”