XPO Logistics and Nestlé open 638,000 sq ft ‘warehouse of the future’ in Leicestershire

XPO Logistics and Nestlé have announced that their flagship distribution centre and technology hub in the East Midlands is now fully operational.

XPO and Nestlé began collaborating on the design and construction of the “Digital Distribution Warehouse of the Future” in 2018, together with technology partner Swisslog Logistics Automation.

The 638,000 sq ft facility at the Segro East Midlands Gateway is designed to deliver fast, efficient distribution of Nestlé products, including KitKat, Maggi and Nescafé.

XPO has been ramping up operations at the site since mid-2020, using processes are designed to accommodate the highest throughput of any warehouse in Nestlé’s global network. It will handle goods produced by 11 Nestlé UK manufacturing sites alongside those imported from several markets worldwide.

The site also manages e-commerce fulfilment for the Nespresso brand, a retail solution for Nespresso Boutique stores, and co-packing for a wide range of Nestlé food products.

Andrew Shaw, supply chain director, Nestlé UK and Ireland, said: “I’d like to offer a huge thank you to the many people at Nestlé and XPO who have worked so hard to bring our vision to life in this magnificent facility. Our digital distribution warehouse is an important step forward for our business and our customers. We can now be faster, more responsive, and more agile in how we supply our products under all conditions, and we can provide a bespoke, personalised service to our customers.”

Shaw added: “This truly is a digital warehouse of the future, with advanced technology that will give Nestlé the flexibility to meet customer and consumer requirements for many years to come.”

The site also includes an innovation hub that also functions as an incubator to test new ways of addressing logistics needs. XPO says it will conduct real-life operating trials of promising technologies and will showcase innovations to customers.

“We’re delighted to launch this milestone facility officially,” said Malcolm Wilson, XPO’s chief executive officer – Europe. “Nestlé and Swisslog are trusted strategic partners of XPO, and they believe, as we do, that the best way to deliver excellence in the present is to maintain a strong focus on the future. We’re pushing the boundaries of supply chain thinking and disrupting the industry in the most positive sense.”