Tesco awards chilled-food distribution contract to XPO Logistics

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XPO Logistics has been awarded a multi-year contract by Tesco plc to manage Tesco’s chilled distribution to stores in the North West region of the UK. Tesco is the UK’s largest retailer of groceries and general merchandise and a leading fuel retailer. Under the new agreement, XPO will be responsible for temperature-controlled transport using XPO fleet and drivers despatched from Tesco’s distribution centre in Widnes, Cheshire.

Additionally, the two companies will collaborate on developing a plan for a carbon-neutral or carbon-negative solution that supports Tesco’s sustainability objectives. In 2009, Tesco became the first business globally to set a goal of becoming net-zero carbon by 2050.

XPO has provided non-food transport services to Tesco UK for more than 25 years. The company deploys a dedicated fleet of tanker trucks and specially trained drivers to collect fuel at 15 refineries and deliver it to nearly 500 consumer filling stations across the UK.

“Tesco and XPO have built trust between our two businesses over many years by working together to ensure a robust supply chain,” said Dan Myers, Managing Director – UK and Ireland, XPO Logistics. “We believe this has created a solid foundation for the future development of our partnership. Providing transport operations at Widnes distribution centre is a natural evolution in our relationship, and we look forward to supporting Tesco in delivering this next phase in their logistics strategy.

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