A £55 million warehouse – dubbed the “Digital Distribution Centre of the Future” – has started handling goods made by the biggest food and drinks company in the world.
XPO Logistics has started operating the site at the SEGRO East Midlands Gateway warehouse park on the Derbyshire/Leicestershire border for Nestlé.
The flagship distribution centre has taken more than two years to set up in partnership with technology partner Swisslog Logistics Automation.
It will handle Nestlé goods made by 11 of its 14 manufacturing sites – plus products imported from abroad – and has thousands of extra square feet set aside for growth and new machines as the volume of goods handled increases.
The 638,000 sq ft facility uses robotics, automated sorting systems and XPO’s intelligent analytics to deliver fast, efficient distribution of Nestlé products, including KitKat, Quality Street and Nescafé.
XPO said it has been ramping up operations on site since mid-2020, as part of a phased opening, and said it has used its global experience dealing with Covid-19 and extensive safety protocols to keep workers safe.
As well as handling Nestlé’s food, dairy, nutrition, drinks and confectionery ranges, the site also manages online orders for the Nespresso brand – promoted by George Clooney – and supplies Nespresso Boutique stores.
Andrew Shaw, supply chain director for Nestlé UK and Ireland, said sustainability was also a key part of the new operation, with deliveries into the London area all going via rail.
A liquified gas refuelling station is also being built to enable Nestlé to operate energy-efficient gas trucks instead of diesel.
Mr Shaw 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, personalised service to our customers.
“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 includes an innovation hub that also functions as an incubator to test new ways of addressing logistics needs. It will help XPO conduct real-life operating trials of promising technologies and showcase innovations to customers.
Malcolm Wilson, XPO’s chief executive for Europe, said he was delighted that the site had officially launched.
He said: “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.”
SEGRO East Midlands Gateway Logistics Park is next to the M1 and East Midlands Airport, and its onsite rail freight terminal connects with Southampton, Felixstowe, London Gateway and the Channel Tunnel.
