Netto, the discount grocer, has awarded Bibby Distribution the contract to provide full logistics services for its new UK operations.
The retailer returned to the UK last year as a joint venture between Sainsbury’s and Netto’s parent company, Dansk Supermarked.
Bibby will provide frozen, chilled and ambient food logistics for Netto UK, which opened five stores in the North of England last year and plans to open another ten by the end of 2015.
It will manage stock from a central multi-retailer regional distribution centre in Scunthorpe, and provide a dedicated fleet of multi-temperature reefer trailers with tail-lifts. It can leverage its capacity to provide Netto with maximum efficiency, providing deliveries on multi-vendor, multi-SKU trucks.
The discounter uses display pallets in-store which Bibby staff prepare at the RDC so they can be brought out to the shop floor immediately after delivery.
As Netto opens more stores Bibby will increase warehousing space and fleet allocation. This means Netto can expand its logistics as new stores open, rather than having to invest upfront. Bibby will also be diffusing costs across its business rather than having departments such as HR dedicated to Netto, which allows for high levels of service and growth.
The contract is Bibby Distribution’s first ever diversification into chilled and frozen food logistics.
Duncan Eyre, Bibby’s development director said the 3PL would be working closely with Netto “to essentially become an integral part of their business. It’s a very different relationship to what might be expected between a 3PL and a retailer and we’re delighted to be able to offer the agility, flexibility and transparency that Netto requires to ensure customers get the very best value.”
