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XPO, Nestlé building digital warehouse of future

The U.K. facility, scheduled for completion in 2020, is touted as one of the most advanced distribution management centers in the world.

   XPO Logistics and Nestlé are co-creating a 638,000-square-foot distribution center at the new SEGRO East Midlands Gateway Logistics Park in Leicestershire, U.K.
   The facility, touted as a digital warehouse of the future, will be occupied predominantly by Nestlé, the world’s largest food and drink company, for its consumer packaged goods and will function as a test-bed environment for XPO technology prototypes prior to global release.
   The custom-designed distribution center, scheduled for completion in 2020, will feature advanced sorting systems and robotics alongside state-of-the-art automation co-developed with Swisslog Logistics Automation, according to an announcement Monday by XPO. The global provider of transportation and logistics solutions said the site’s digital ecosystem will integrate predictive data and intelligent machines to deliver one of the most advanced distribution management centers in the world.
   David Hix, Nestlé’s director of supply chain, said, “This is a world-first investment for Nestlé that builds on a century and a half of proud history in this country. Our partnership with XPO will encourage innovation and experimentation in our U.K. logistics operations and help future-proof our business. We will be able to be even more responsive for our customers across our brands.”
   The XPO-owned facility will be strategically located in the Midlands to benefit from direct access to the M1 motorway for road transport, the East Midlands Airport for cargo flights and an onsite rail freight terminal with direct access to the major U.K. ports of Southampton, Felixstowe, London Gateway and the Channel Tunnel.
   XPO said the facility will be sited on manmade plateaus, with landscaping to minimize the visual impact to nearby settlements. Additional sustainability measures include energy-saving LED lighting, environmentally friendly ammonia refrigeration, air source heat pumps for administration areas and rainwater harvesting.      
   Richard Cawston, managing director of supply chain for XPO Logistics Europe, said, “Nestlé has entrusted XPO with the digital architecture for its future vision. Together we will create limitless opportunities to explore new technologies in a state-of-the-art logistics environment. The new East Midlands center will operate as both a think tank and a launch pad for XPO innovations, with far-reaching impacts on the way business is done.”