Kellogg’s has relocated its cereals and food warehousing to a site in Manchester’s Trafford Park, which is to be managed by TDG on a five-year contract worth around £11 million annually.
TDG acquired the 311,000 sq ft ‘Merlin’ site as part of the agreement and has also taken over the company’s existing 330,000 sq ft regional distribution centre, based nearby on Trafford Park.
The new warehouse replaces a similar facility in Warrington, located 15 miles away from the company’s manufacturing site in Manchester.
As the warehousing facility is now closer the company will be able to cut down the number of shuttle runs it makes transporting goods between the two sites and expects to save more than 110,000 road miles a year, equating to a reduction of 160,000kg of carbon dioxide annually.
All Kellogg’s storage is now within a mile of its main cereal factory, with goods from its Wrexham manufacturing plant also warehoused at Merlin.
TDG has fitted out the warehouse with more than 30,000 three-metre pallet locations.
Colin Ridler, supply chain director at Kellogg’s, said: “The changes have been made because we want to drive efficiencies in our distribution operations and cut the number of road miles we cover a year.”