Tesco has given XPO Logistics, a leading supply chain company, a multi-year deal that sees XPO manage Tesco’s chilled distribution to stores in the North West region of the UK.
Under the new agreement, XPO will be responsible for temperature-controlled transport using an XPO fleet and drivers despatched from Tesco’s distribution centre in Widnes, Cheshire.
Additionally, the two companies will collaborate on developing a plan for a carbon-neutral or carbon-negative solution that supports Tesco’s sustainability objectives which includes becoming net-zero carbon by 2050.
“Tesco and XPO have built trust between our two businesses over many years by working together to ensure a robust supply chain,” XPO Logistics UK and Ireland managing director Dan Myers said.
“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 has provided non-food transport for the Big 4 grocer in the UK for more than 25 years. The company deploys a dedicated fleet of tanker trucks and specially trained drivers to collect fuel at 15 refineries and deliver it to nearly 500 consumer filling stations across the UK.