GXO Logistics Inc., the world’s largest pure-play contract logistics provider, said Tuesday it has expanded its partnership with Kellogg Co.,(NYSE: K) the world’s leading cereal producer and a leading maker of snack foods.
The renewed agreement includes solutions in the U.K., Spain, Germany and Poland as well as a new facility in Belgium.
“We’re delighted to extend and expand our partnership with Kellogg and we look forward to continuing to add value to Kellogg’s logistics operations,” said Richard Cawston, president, Europe, for Greenwich, Connecticut-based GXO (NYSE: GXO). “We will continue to make strategic investments in automation and apply our industry-leading experience and expertise to help Kellogg optimize its production support, warehousing, delivery execution and co-packing activities.”
The companies said they will implement technologies and practices at eight sites across Europe by incorporating continuous improvement initiatives to increase productivity and speed while reducing costs. These initiatives include technology investments, process improvements and knowledge-sharing.
Bruno Esmeraldo, Kellogg’s European logistics director, said, “Working with a data-driven company like GXO helps us improve operational and service performance visibility and enable greater proactive decision-making.”
In Belgium, GXO will manage Kellogg operations in a new 650,000-square-foot semi-automated facility in Mechelen starting in June. GXO’s solutions at this facility will include warehousing and a transport shuttle service between the Kellogg factory and the facility plus an option for further value-add co-packing services.
In the U.K., where the companies began working together in 2008, GXO manages three warehouses for Kellogg and employs approximately 350 team members. In Spain, GXO and Kellogg began working together in 2018, and today GXO manages approximately 500,000 square feet of dedicated space in two warehouses with over 100 team members for Kellogg, enabling supply to the Iberian Peninsula, the South of France and the U.S.
In Germany, GXO and Kellogg recently extended their long-standing partnership at the site in Bremen, which employs 71 team members and serves the entire German market. In Kutno, Poland, a 290,000-square-foot warehouse employs about 120 people and provides storage, pick, pack and value added co-packing services.
As part of the new agreement, GXO has implemented its Reflex web WMS at sites in Spain and the U.K. and will implement the same in Belgium. In addition, GXO said it is working with Kellogg to develop digital reporting metrics to further improve operational and service performance visibility and enable greater data-driven decision-making.