Tesco takes part of its logistics in-house

Tesco has decided to take some of its distribution operations in-house, resulting in the closure of the Fastway distribution centre in Daventry, Northamptonshire, central England, at the end of March. The move follows a review of the company’s supply chain strategy which concluded that the refrigerated and rail-connected warehouse at that facility was not able to deal with the increasingly diverse range of goods sold in Tesco outlets or its expected volumes. The centre was run by DHL Exel Supply Chain which, as a result of Tesco’s decision, has been forced to make 150 jobs redundant, with a further 150 staff being redeployed to other parts of the company. Tesco stated that the economic downturn had meant that fewer jobs could be relocated than previously anticipated.

 

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