Nestlé Distribution Center Opens with Technology from Swisslog

In partnership with technology partner Swisslog Logistics Automation, XPO Logistics, a leading global provider of transportation and logistics solutions, and Nestlé have successfully realized the distribution center project that began in 2018. Nestlé’s flagship distribution center in the UK and its technology hub transitioned to full operation at the end of March 2021 after a phased opening.

(Buchs/AG Switzerland; Leicestershire/GB) The 638,000 square meter facility at Segro East Midlands Gateway in Leicestershire features modern solutions tailored by Swisslog and integrated into XPO’s digital warehouse ecosystem.

The operation utilizes advanced robotics, automated sorting systems, and XPO’s intelligent analytics to ensure fast and efficient distribution of Nestlé products, including KitKat, Maggi, and Nescafé.

XPO Logistics ramped up operations on-site since mid-2020, leveraging its global experience with COVID-19 and extensive safety protocols to protect employees. XPO, Nestlé, and Swisslog worked closely under the given protective conditions to achieve efficient commissioning under challenging circumstances.

Enabling Maximum Throughput

The processes are designed to enable the highest throughput of any warehouse in the global Nestlé network. Goods are handled that are produced by 11 Nestlé UK production sites or imported from various markets worldwide. In addition to delivering the large volume of retail products for Nestlé’s food, dairy, nutrition, beverage, and confectionery ranges, the new site also handles e-commerce fulfillment for the Nespresso brand, a retail solution for Nespresso boutique stores, as well as value-added co-packing for a wide range of Nestlé food products.

Sustainability was a key consideration in the design and site selection for the building. The site is located at a rail junction, and Nestlé will handle exports and deliveries to the Greater London area by rail. A liquefied gas refueling station is currently being developed on-site, allowing Nestlé to use energy-efficient gas trucks instead of diesel.

Meeting Consumer Demands for Many Years

“The employees of Nestlé, XPO, and Swisslog have done an excellent job bringing this vision to life in an innovative facility,” emphasizes Dr. Christian Baur, CEO of Swisslog. He further states: “This digital warehouse of the future gives Nestlé the flexibility to meet customer and consumer demands for many years with the most advanced technology.”

Andrew Shaw, Supply Chain Director at Nestlé for the UK and Ireland: “I would like to extend a big thank you to the many people at Nestlé and XPO who have worked so hard to bring our vision of this great facility to life. Our digital distribution center is an important step forward for our business and our customers. We can now respond faster and deliver more flexibly – ensuring our customers receive our products and a tailored, personalized service under all circumstances.”

Shaw adds: “This is indeed a digital warehouse of the future. It features state-of-the-art technology that gives Nestlé the flexibility to meet customer and consumer needs for many more years.”

Designed as a Multi-User Facility

The site includes an innovation hub that also serves as an incubator where new ways to tackle logistical challenges can be tested. XPO will conduct test operations under real conditions with promising technologies and present innovations to customers. The facility is designed as a multi-user space to accommodate solutions tailored to the needs of various logistics operations.

“We are excited to officially open this showcase facility now,” says Malcolm Wilson, Chief Executive Officer – Europe at XPO. “Nestlé and Swisslog are trusted strategic partners of XPO, and they, like us, believe that the best way to achieve excellence in the present is to maintain a strong focus on the future. We are pushing the boundaries of supply chain thinking and driving disruption in the industry in the best sense.”

The new distribution center is located in the Segro Logistics Park East Midlands Gateway, benefiting from direct access to the M1 motorway and East Midlands Airport, as well as the local freight railway station, which provides connections to major UK ports Southampton, Felixstowe, and London Gateway, as well as the Eurotunnel.

Photo: © Swisslog