Sainsbury’s is transforming its logistics operations by restructuring its supply chain, which will impact 7,000 employees.
However, the grocery giant said that the changes will not lead to job losses and the restructuring will improve service and availability for customers.
As part of the move, Sainsbury’s will streamline its operations across three areas; food; transport; and general merchandise & clothing by 2024.
The changes will cause 3,000 Sainsbury’s and Argos employees as well as 4,000 existing third-party employees to transfer to one of the three companies it will partner with: DHL, Wincanton, and GXO Logistics.
The company has said that it will be investing £200 million into its logistics operations over the next three years to ‘modernise’ its operations and improve its fulfilment processes.
The company is also working on reducing its carbon emissions to reach its reduction targets by 2035.
Simon Roberts, Chief Executive Officer of Sainsbury’s said: “We believe our logistics and fulfilment operation will be one of our key competitive advantages in the future and today’s announcement will benefit our whole network through knowledge sharing and increased innovation.
“We’re confident that these changes will help us continue to invest where it will make the most impact for customers, now and in the future.”