XPO Logistics and Nestlé have unveiled their flagship distribution centre, the Digital Distribution Warehouse of the Future, and technology hub in the UK, which completed its phased opening to full operations. XPO and Nestlé began collaborating on the design and construction of the Digital Distribution Warehouse of the Future in 2018, together with technology partner Swisslog Logistics Automation.
According to XPO, the 638,000 sq ft facility at the Segro East Midlands Gateway in Leicestershire includes advanced solutions customised by Swisslog and integrated with XPO’s digital warehouse ecosystem. The operations use robotics, automated sorting systems and XPO’s analytics to deliver efficient distribution of Nestlé products, including KitKat, Maggi and Nescafé, according to the company.
It will handle goods produced by 11 Nestlé UK manufacturing sites alongside those imported from several markets worldwide.
In addition to delivering the high volume of retail products associated with Nestlé’s food, dairy, nutrition, beverage, and confectionery ranges, the site will also manage e-commerce fulfilment for the Nespresso brand, a retail solution for Nespresso Boutique stores, and value-added co-packing for a range of Nestlé food products.
Sustainability was also stated to have been a core consideration in the design and location of the building. The site is on a railhead, and Nestlé will be dispatching exports and deliveries into the London area via rail. A liquified gas refuelling station is currently being developed at the site to enable Nestlé to operate energy-efficient gas trucks instead of diesel.
Andrew Shaw, supply chain director, Nestlé UK and Ireland, said, “I’d like to offer a huge thank you to the many people at Nestlé and XPO who have worked so hard to bring our vision to life in this magnificent facility. Our digital distribution warehouse is an important step forward for our business and our customers. We can now be faster, more responsive, and more agile in how we supply our products under all conditions, and we can provide a bespoke, personalized service to our customers.”
Shaw added, “This truly is a digital warehouse of the future, with advanced technology that will give Nestlé the flexibility to meet customer and consumer requirements for many years to come.”
The site is said to include an innovation hub that also functions as an incubator to test new ways of addressing logistics needs, where XPO will conduct real-life operating trials of technologies. The facility is designed as a multi-user space to accommodate solutions tailored to the needs of different logistics operations.
“We’re delighted to launch this milestone facility officially,” said Malcolm Wilson, XPO’s chief executive officer – Europe. “Nestlé and Swisslog are trusted strategic partners of XPO, and they believe, as we do, that the best way to deliver excellence in the present is to maintain a strong focus on the future. We’re pushing the boundaries of supply chain thinking and disrupting the industry in the most positive sense.”
The new distribution centre is located in the Sergo East Midlands Gateway Logistics Park with access to the M1 motorway and East Midlands Airport, as well as the onsite rail freight terminal that connects with the major UK ports of Southampton, Felixstowe, and London Gateway, and the Channel Tunnel.
Source: XPO Logistics
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