Nestle planning digital warehouse at park
FOOD and drink giant Nestle has confirmed it is opening a major transport and logistics park near East Midlands Airport which it is calling a “digital warehouse of the future”.
The food business has finally confirmed it is taking on a 640,000 sq m site at the vast new Segro East Midlands Gateway Logistics Park – but will not say how many potential jobs there will be or how much it is spending.
The business, which is behind brands such as KitKat, Nescafe and Herta frankfurter is working with transport and logistics specialist XPO Logistics to create the distribution centre.
It will be occupied predominantly by Nestle to distribute its goods, but will also be used to test new technology developed by XPO. Nestle already has a distribution site at Bardon Hill, near Coalville, run by truck company Eddie Stobart, and said that arrangement is coming to an end.
The new warehouse will open in 2020.
A Nestle spokesman said: “We recently reviewed our distribution arrangements in the UK and, through a comprehensive tendering process, XPO won the contract to deliver and manage this new distribution centre.
“In 2020, our contract with ESL will come to an end. Our new supplier, XPO Logistics, will establish a new facility that will better serve the needs of our customers for many years into the future. We aren’t discussing the costs – but it’s a sizeable investment from XPO and Nestle.
“We can’t speculate on the number of job roles at the new facility –this will be announced nearer the opening time.”
According to Nestle, the custom-designed distribution centre will be fitted out with advanced sorting systems and robotics.
It will use predictive data and intelligent machines to distribute goods, creating what the firm believes will be one of the most advanced distribution management centres in the world.
David Nix, Nestle’s director of supply chain, 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 Nestle that builds on a centuryand-ahalf of proud history in this country.”
Nestle’s new building at East Midlands Gateway, which will have a number of energy-saving features, will be owned by XPO. Richard Cawston, managing director of supply chain at XPO Logistics Europe, said: “Nestle has entrusted XPO with the digital architecture for its future vision. Together, we will create limitless opportunities to explore new technologies in a state-ofthe-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.”
East Midlands Gateway, which covers 700 acres, is described as an “inland port”.
It is being built just off the M1 near Castle Donington, and once complete it will be served by its own rail freight connection. It will create more than 7,000 jobs.
It will also support a further 3,000 indirect jobs.