Wednesday 19th Dec 2018 - Logistics & Supply Chain

Whitbread outsources to K&N

Logistics provider Kuehne + Nagel has secured a new contract to manage
the distribution of food on behalf of Whitbread plc, the UK’s largest
hotel and restaurant group.

Whitbread, which manages the number one brands in hotels,
restaurants and coffee shops, including Premier Inn, Brewers Fayre,
Beefeater, and Costa has taken the decision to fully outsource its food
logistics activities to Kuehne + Nagel.

Under the terms of the five-year contract, Kuehne + Nagel will
undertake delivery of chilled and ambient products to over 700 Costa
Coffee outlets seven days per week, and delivery of frozen, chilled and
ambient products to almost 600 Brewers Fayre, Beefeater and Premier
Inn restaurants nationwide. In addition, Kuehne + Nagel will operate a
customer call centre on behalf of Whitbread and manage the ordering
of products from designated suppliers. The operation, which is
expected to handle over 20 million cases per annum, will be based at a
new national distribution centre in Wellingborough, supported by
outbases in Trafford Park, Cullompton, Harlesden, Dagenham and
Livingston in Scotland. The respective Whitbread employees will
transfer to Kuehne + Nagel under TUPE.

Alan Parker, chief executive officer, Whitbread, said, ‘There is a
compelling financial case for outsourcing versus retaining our food
logistics operations in house and we will derive significant financial
benefits from moving to a new operational location. We chose
Kuehne + Nagel as our preferred supplier because they offered the
most attractive and competitive solution and clearly demonstrated
their commitment and desire to work with Whitbread during the tender
process.’

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