Nestlé and XPO Logistics begin construction of new digital warehouse

Swiss food company Nestlé and logistics solutions provider XPO Logistics are co-creating a new 638,000ft² distribution centre, which is set to be located at the new SEGRO East Midlands Gateway Logistics Park in Leicestershire, UK.

The custom-designed distribution facility is intended to serve as a digital warehouse of the future and will be primarily occupied by Nestlé for its consumer packaged goods.

It is currently scheduled for completion in 2020 and is anticipated to serve as a testbed environment for XPO technology prototypes prior to their global launch.

The centre will feature advanced sorting systems and robotics technologies alongside automation solutions that have been co-developed with Swisslog Logistics Automation.

In addition, the XPO-owned facility’s digital network is expected to be integrated with predictive data capabilities and intelligent machinery, which will enable it to serve as an advanced distribution management centre and facilitate faster access to Nestlé brands such as KitKat, Maggi and Nescafé.

The centre will be located in the Midlands, enabling it to benefit from direct access to the M1 motorway for road transport and East Midlands Airport for cargo flights.

It is also slated to feature an on-site rail freight terminal with access to the UK ports of Southampton, Felixstowe and London Gateway, along with the Channel Tunnel.

The facility will employ a number of sustainability measures such as the installation of energy-saving LED lighting, environmentally friendly ammonia refrigeration technology, and air source heat pumps for administration areas, as well as rainwater harvesting systems.

Nestlé supply chain director David Hix said: “We are thrilled to be working with XPO Logistics to build a flagship digital warehouse and technology laboratory at the East Midlands Gateway Logistics Park.

“This is a world-first investment for Nestlé that builds on a century and a half of proud history in this country.

“Our partnership with XPO will encourage innovation and experimentation in our UK logistics operations and help future-proof our business.

“We will be able to be even more responsive for our customers across our brands, which include some of the most recognisable in the world.”

XPO Logistics Europe managing director for supply chain Richard Cawston said: “Nestlé has entrusted XPO with the digital architecture for its future vision.

“Together, we will create limitless opportunities to explore new technologies in a state-of-the-art logistics environment.

“The new East Midlands centre will operate as both a think tank and a launch pad for XPO innovations, with far-reaching impacts on the way business is done.

“We look forward to an inventive collaboration with Nestlé.”