Tesco closes Fastway DC

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Tesco has taken the decision to bring distribution operations at its Fastway warehouse in Daventry in-house.

The move will end the supermarket’s contract with DHL at the site, resulting in 150 redundancies to DHL staff.

The DC is due to close on 27th March following a consultation period last year, which involved discussions with employees and their union representatives.

DHL employed 300 staff at the site and has been able to redeploy 150 employees across the business, but the remaining 150 will be let go when the site closes.

A spokesperson for Tesco said: “At Tesco we regularly review our distribution network to ensure it is able to deliver the very best service to our shops and our customers. As a result of this we gave notice of contract termination of the Fastway operation, based near Daventry which is operated for Tesco by DHL earlier this summer [July 2008].

“The decision has come about because the workload growth for the Tesco business now outstrips this site’s capability. Regrettably the site does not have the capacity to support the Tesco network going forward. 
“DHL will continue to run the operation until the end of March 2009, when workload currently carried out by the Fastway centre will be relocated throughout the Tesco Network. Both Tesco and DHL will support everyone at the Fastway Distribution Centre through the difficult transition ahead.”

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