GXO Logistics gets nod to operate all outsourced food warehouses for Sainsbury’s

London-based retailer Sainsbury’s said this week it has tabbed Greenwich, Conn.-based global contract logistics services provider GXO Logistics to operate all of the company’s outsourced food warehouses, for fresh and frozen food products, throughout England.

Sainsbury’s said that this is a key part of its plans to “transform and simplify its logistics operations by working more effectively with the expert partners who already run significant parts of its network.” And it added that this initiative will focus on three dedicated partnerships across transport, food, and general merchandise & clothing by the end of 2024, rather than multiple different contracts across its network, allowing the retailer to operate at a national level for the first time, while also leveraging its partners’ expertise to better serve customers, drive innovation, and facilitate the sharing of industry best practices.

With GXO handing the food side of the business, Sainsbury’s said most of its transportation operations will shift to Wincanton, an England-based supply chain solutions services provider across myriad vertical markets, and global express delivery and logistics services provider DHL absorbing additional warehouse operations for Sainsbury’s general merchandise network, including Argos, Habitat, and Tu Clothing, and also continue to operate warehousing and transport for large item GM home delivery.

“We have enjoyed a great partnership with Sainsbury’s for many years and are incredibly excited to become Sainsbury’s partner of choice for its food warehouses nationwide,” said Gavin Williams, UK&I Managing Director at GXO. “The scale of this new business win is tremendous and is a testament to our track record of operational excellence, customer service, continuous innovation and our people. We look forward to supporting Sainsbury’s at a national level through a more expansive, enhanced and innovative offering in fulfilment.”

A GXO spokesman explained that this is a huge win for the company, with GXO operating all of Sainsbury’s outsourced food warehouses in England. What’s more, he said GXO has enjoyed a longstanding partnership with Sainsbury’s for many years, currently managing nine reverse logistics sites, as well as a food distribution center. And as part of the new agreement, GXO said it will operate an additional six warehouses for Sainsbury’s fresh and frozen food. As part of changes to its logistics operations, Sainsbury’s will consolidate its Food warehousing from three different logistics partners to GXO, it added.

“This customer win materially expands GXO’s relationship with Sainsbury’s and positions GXO squarely as the leader in food and beverage logistics in the UK & Ireland,” said the GXO spokesman. “It is testament to GXO’s operational excellence, customer service and innovation and another great example of how GXO is building stronger, more expansive and more successful relationships with its customers and continuing to deliver exceptional service and adding value to their businesses.”