XPO Logistics has secured a multi-million pound, long-term agreement with Gower Furniture, a manufacturing unit of Nobia AB. Gower is a leading supplier of kitchens to the UK trade and retail sectors.
Under the agreement, XPO Logistics will provide Gower with an estimated 2,000 timed, full-load deliveries to customer distribution centres annually, as well as over 8,000 multi-drop deliveries to more than 150 UK branches. XPO has invested in a dedicated fleet of new tractors and trailers equipped with tracking technology to provide traceability of orders, equipment monitoring and fuel use analysis.
XPO will also lead a cost improvement programme that will identify and deliver day-to-day efficiencies with solutions tailored for Gower’s operations. These include generating backhaul opportunities and optimising the use of fleet by managing complementary traffic flows.
Andy Young, UK logistics director at Nobia, said:
“Working with the XPO Logistics team will allow us to focus even more effectively on the manufacturing of quality kitchens– our core competency – while knowing that our products will be in safe hands for reliable delivery. We’re delighted to be in such experienced hands as we continue our dynamic growth”.
Dave Finnie, UK business unit director at XPO Logistics, said:
“Nobia came to us as the UK’s leading kitchen specialist with a requirement for supply chain support that will scale up as they deliver on their growth plans. We are committed to helping Nobia reduce cost and improve efficiency to deliver even greater value to their customers”.
Separately, XPO Logistics has secured a multi-million pound, long-term contract extension with global domestic appliances and cookware giant Groupe SEB.
The new contract will see XPO streamline Groupe SEB’s supply chain by switching the client to an innovative shared user model.
XPO Logistics has provided transport services for over 15 years to Groupe SEB at a domestic level in France. It has also provided distribution transport solutions in Spain and Portugal since 2015 and transport services at the broader European level.
Under the new contract, XPO Logistics will relocate Groupe SEB’s UK warehousing operation to a shared user facility it operates in West Hallam, Derby. This has the capacity and flexibility to accommodate peak activity, during which stockholding doubles. The facility will receive loads daily, primarily from France and China.
The agreement covers product storage, picking and reworking. It also includes deliveries by XPO Logistics Transport Solutions to high street retail chains, Groupe SEB's own Home & Cook stores and the growing number of individual consumer orders being received via Groupe SEB's online store.
The move is the latest example of XPO Logistics’ commitment to integrated supply chains to drive efficiencies, boost multi-user flexibility and secure cost-savings.
Around half of the stock keeping units stored at the warehouse require value-added services prior to dispatch. These activities include decanting from outer pack to retail pack, adding sample coffee packs and applying customer-specific bar labels.
Malcolm Wilson, managing director supply chain at XPO Logistics Europe, says:
"We have identified and implemented opportunities to streamline Groupe SEB's supply chain and are confident the customer will continue to reap the benefits going forward. We're delighted to further extend our long-term relationship with this highly successful business, selling on average six products a second across the globe."
Bryan Lawrence, Warehouse and Distribution Manager at Groupe SEB, says:
"We operate in a fast moving, highly competitive market. It's reassuring to have a reliable, flexible and responsive supply chain provider by our side."