Heineken renews logistics contract with GXO

Brewing company Heineken has today [20 July] announced its renewed partnership with pure-play contract logistics provider GXO Logistics.

The multi-year contract will see GXO continue to operate Heineken’s warehouse and distribution network. GXO will also operate its secondary transport network to UK retailers and wholesalers, as well as to its 2,400 pubs around the UK.

According to GXO, “this network manages more than 500,000 deliveries per year to more than 8,000 customers from point of production to retail and wholesale delivery”.

The operation consists of four regional distribution centres, 18 local delivery platforms and transit depots, over 400 vehicles, and over 1,500 employees.

Boudewijn Haarsma, Managing Director of Heineken UK, said: “We’ve worked closely with an experienced partner in GXO on developing a multi-year investment and transformation programme to ensure the network is fit for future.

“Our joint plan, which focuses on investing into modernising the network, underpins our service to customers and our commitment to continuous improvement and sustainability.”

Heineken has committed to reaching net zero carbon emissions in production by 2030 and net zero emissions across its entire supply chain by 2040.

In addition to improving the sustainability of its logistics operations, Heineken has looked to meet its targets through investment in renewable energy, changes to its product packaging, and the decarbonisation of its agricultural activities.

Meanwhile, GXO has invested in technology that it says has “shortened transit times and lowered CO₂ emissions” within the Heineken transport network.

If you haven’t already, check out the morning and afternoon highlights from the Sustainable Supply Chain Conference for expert insight on how supply chains are becoming more sustainable.

Richard Cawston, President of GXO Europe, said: “Over the past two years, we’ve made significant progress transforming our operations and delivery network to make it simpler, stronger, more efficient, and more sustainable.

“Together, we will continue to invest to enhance efficiency and service to support Heineken’s expected growth. It’s a great partnership for us, our team members, and the pub industry in the UK.”

For more on sustainable logistics, check out this feature in the July issue of Logistics Manager Magazine!

The two companies began working together in 2021 and this new agreement will continue the relationship for years to come, although the exact length of the new contract is currently undisclosed.

Source: logisticsmanager.com