XPO Logistics has had its contract to provide reverse logistics and other asset management services to Asda renewed.
The three-year contract extends XPO’s relationship with the supermarket chain to more than two decades.
XPO will continue to manage the logistics for Asda’s product trays through a network of nine sites. The returned assets are washed and reused for product distribution, or sold or recycled. XPO is a key partner in Asda’s zero-waste strategy, ensuring eco-friendly recycling of cardboard, plastic and food waste.
Proprietary XPO technology, developed in conjunction with Asda, will be used to manage a pool of over eight million assets and oversee 250 supplier accounts. Since 2002, XPO and Asda have collaborated to create tailored reverse logistics and asset management solutions.
Chris Hall, senior director of central logistics at Asda, said, “We’re delighted to be continuing our successful partnership with XPO. Together, we’ve worked hard to implement far-reaching waste reduction initiatives and achieve significant savings and other efficiencies. We look forward to nurturing further improvements across our reverse network.”
Gavin Williams, managing director of supply chain at XPO Logistics, added: “The teams at Asda and XPO have worked tirelessly to drive tangible cost reductions and process improvements for Asda. We’re excited to use our expertise with asset management to realize even greater productivity, delivered through customized technology.”
NAM Implications:
- Their record indicates that the XPO-Asda process works.
- The issue for suppliers has to be the possible disadvantages of being out of this loop?
