GXO Logistics and BAE Systems have renewed and expanded their long-standing logistics partnership in the UK.
A new six-year agreement extends the relationship into its third decade and will support BAE Systems’ shipbuilding operations for the Type 26 frigate programme.
The vessels are being built for the Royal Navy at BAE Systems’ Scotstoun and Govan shipyards on the River Clyde in Glasgow.
Under the renewed contract, GXO will provide warehousing and materials-handling services at the two shipyards. It will also manage inbound to manufacturing and outbound volumes across an estate of warehousing facilities in Scotland’s Central Belt.
According to GXO, inbound and outbound transport operations will be coordinated through a dedicated fourth-party logistics (4PL) control tower designed for defence supply chains. Integrated technology platforms will be used to improve visibility, coordination and control of inventory movements across the network, the company said.
Jen Blee, manufacturing and facility director at BAE Systems, Naval Ships said: “This agreement with GXO will help us continue to improve the efficiency of our supply chain and shipbuilding operations as we deliver Type 26 frigates for the Royal Navy.”
Gavin Williams, managing director, GXO UK & Ireland, said the extension reflects BAE Systems’ confidence in GXO’s capabilities and marks an important milestone “as the first realisation of GXO’s expanded defence capabilities following our acquisition of Wincanton.”
GXO completed its acquisition of Wincanton in April 2024, expanding its presence in strategic sectors including aerospace and defence and strengthening its capabilities in complex, security-sensitive logistics operations.
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