Tesco has awarded XPO Logistics a multi-year contract to manage its chilled distribution to stores in the North West.

XPO will be responsible for temperature-controlled transport using XPO fleet and drivers dispatched from the supermarket’s distribution centre in Widnes, Cheshire.

The logistics business said it is developing a plan with the retailer for a carbon-neutral or negative solution to support Tesco’s sustainability objectives.

"Tesco and XPO have built trust between our two businesses over many years by working together to ensure a robust supply chain,” said Dan Myers, managing director, XPO Logistics, UK and Ireland. “We believe this has created a solid foundation for the future development of our partnership.

“Providing transport operations at Widnes distribution centre is a natural evolution in our relationship, and we look forward to supporting Tesco in delivering this next phase in their logistics strategy."

The move builds on an existing relationship between the two companies, with XPO having provided non-food transport services for 25 years. The company currently deploys a dedicated fleet of tanker trucks to collect fuel at 15 refineries and deliver it to nearly 500 consumer filling stations across the UK.

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