Saturday 22nd Oct 2016 - Logistics Manager

Contract offers cost saving opportunities

European logistics provider Christian Salvesen has won a five-year contract with Marks & Spencer (M&S) to carry out the retailer’s frozen warehousing and distribution in the UK. It follows significant investment by Salvesen into its frozen distribution network and the expansion of the hub at Bedworth to create an extra 15,000 pallet spaces for M&S and other clients.

As part of the deal Salvesen will store, handle and distribute 2.9 million cases of frozen products each year from Bedworth to more than 300 M&S stores nationwide. Salvesen will also distribute into M&S’ expanding network of Simply Food stores.

The contract is the final stage of a two-year change programme, which has seen Salvesen centralise frozen distribution at its multi-user site at Bedworth. Designed to reduce duplication of stock-holding and deliveries, it replaces dedicated operations at Bury and Bracknell. A key component in securing the contract was Salvesen’s ability to offer web-based visibility of cold store stock and progress against orders via its bespoke STOCKNet system.

Ian Mumby, M&S’ head of supply chain and IT, says: “We are pleased to have agreed a new long term contract with Christian Salvesen for the national warehousing and distribution of frozen food. This contract will enable us to identify and implement further cost reduction and service enhancement opportunities within our frozen business.”