Retail chain the Co-op has delivered a timely boost to logistics group Wincanton by renewing its food distribution contract for a further five years.
Last week Wincanton bosses told the firm’s AGM that they would closely monitor the impact of the EU referendum decision on the business.
While the Chippenham-based firm’s clients are now based almost completely in the UK and Ireland, it employs a large number of EU nationals in its warehouses and distribution depots.
Its AGM statement said: “We are a large multicultural and multinational employer and we will continue to value the development and retention of all our colleagues from all nationalities.
“Wincanton is a resilient and innovative company with over a 90 year history and we are confident that we will successfully navigate through any changes arising from the referendum result.”
The Co-op has been a client of Wincanton for more than 25 years. Under the renewed contact Wincanton will continue to service the Co-op’s logistics depots on Merseyside and in Cambridgeshire.
Under the contract it employs around 700 staff and uses a fleet of 500-plus vehicles to support the challenging demands of the grocery marketplace – making around 130,000 journeys a year to up to 1,000 Co-op stores nationwide.
Wincanton said as part of the contract renewal it would achieve further efficiencies and continuous improvement benefits across its logistics operations.
Chief executive Adrian Colman said: “Wincanton will deliver transformational change, utilising our continuous improvement expertise to capitalise on opportunities for further efficiencies across these operations.
“This significant contract renewal with the Co-op underlines our leadership in the UK grocery sector for supporting successful retailers in their ambitions to win market share.”
Co-op head of transport Jon Paul Brown added: “Renewing our food logistics contract with Wincanton is an important part of our re-build strategy, which continues at pace.
“We remain committed to delivering the best possible service to stores and we are confident that continuing our long-term relationship with Wincanton will help this and reduce our operating costs, to support investment in our business and members going forward.”
Since March Wincanton has signed a number of major contracts including a five-year contract to manage DIY chain B&Q’s distribution centres, the renewal of a five-year contract with Sainsbury’s to support its supermarket and convenience stores across England and Wales, and a three-year agreement for transport logistics with Halfords.
The firm operates more than 4,000 vehicles and employs 15,500 people across 200-plus sites in the UK. It sold its European distribution operations in 2011.
