Duncan Eyre, Bibby Distribution’s Development Director

Netto UK awards Bibby Distribution new full food logistics contract

Under a new contract Bibby Distribution is to provide full food logistics services for Netto UK. The 3PL will handle frozen, chilled and ambient food logistics for the discounter, which opened five stores in the North of England last year and plans to open another ten by the end of this year.

Netto returned to the UK last year as a joint venture between its parent company, Dansk Supermarked, and Sainsbury’s.

The contract is Bibby Distribution’s first ever diversification into chilled and frozen food logistics.  The logistics provider will manage stock from a central multi-retailer regional distribution centre (RDC) in Scunthorpe.

Bibby Distribution operates a fleet of multi-temperature reefer trailers with tail-lifts, and can leverage its capacity to provide Netto with deliveries on multi-vendor, multi-SKU trucks.  Staff will also prepare the display pallets used in-store by the discounter.

Duncan Eyre, Bibby Distribution’s Development Director, said: “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 increase its warehousing space and fleet allocation, allowing the discounter to expand its logistics operations as new stores open, rather than having to invest in advance.