Bibby Distribution is to provide full logistics services for Netto UK, the discounter which returned to the UK last year as a joint venture between Sainsbury’s and Netto’s parent company, Dansk Supermarked.
Under the contract, Bibby Distribution 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.
Netto has selected Bibby Distribution to act as its 3PL provider thanks to Bibby Distribution’s unique combination of capacity and flexibility.
The contract is Bibby Distribution’s first ever diversification into chilled and frozen food logistics.
Bibby will manage stock from a central multi-retailer regional distribution centre (RDC) in Scunthorpe. Bibby provides a dedicated fleet of multi-temperature reefer trailers with tail-lifts and 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 Distribution staff prepare at the RDC so they can be brought out to the shop floor immediately after delivery.
Duncan Eyre, Development Director, Bibby Distribution, says: “Our mission is to provide the most efficient possible supply chain solution. That means 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.”
As Netto opens more stores Bibby Distribution will grow warehousing space and fleet allocation. This level of service means Netto can expand its logistics as new stores open, rather than having to invest upfront. Bibby Distribution 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.