Distribution warehouse of the future opened by Nestlé

The 638,000 square foot facility at Segro East Midlands Gateway in Leicestershire includes solutions customized by Swisslog and integrated into XPO's digital warehouse ecosystem. The facility uses robotics, automated sortation systems and XPO's smart analytics to ensure the distribution of Nestlé products, including KitKat, Maggi and Nescafé.

XPO Logistics has been ramping 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 together under the given protective conditions and thus achieved an efficient start-up under difficult conditions.

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

Sustainability was a key consideration in the design and siting of the building. The site is located at a rail hub and Nestlé will handle exports and deliveries to the Greater London area by rail. A liquefied natural gas filling station is currently being developed at the site so that Nestlé can use energy-efficient gas trucks instead of diesel.

"The employees of Nestlé, XPO and Swisslog have done a great job to realize this vision in an innovative facility," emphasizes Dr. Christian Baur, CEO of Swisslog. He continues: "This digital warehouse of the future gives Nestlé the flexibility to meet customer and consumer demands for many years to come with the most advanced technology."

Andrew Shaw, Supply Chain Director at Nestlé for the UK and Ireland, said: "I would like to say a huge thank you to the many people at Nestlé and XPO who have worked so hard to bring our vision for this great facility to life. Our digital distribution center is a major 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 in all circumstances."

Shaw adds: "This really is a digital warehouse of the future. It has cutting-edge technology that will give Nestlé the flexibility to meet customer and consumer needs for many years to come."

The site includes an Innovation Hub, which also functions as an incubator where new ways of tackling logistical challenges can be tested. XPO will conduct test operations under real-life conditions with promising technologies and present the innovations to customers. The facility is designed as a multi-user space to accommodate solutions tailored to the needs of different logistics operations.

"We are delighted to officially launch this flagship facility," said Malcolm Wilson, Chief Executive Officer - Europe at XPO. "Nestlé and Swisslog are trusted strategic partners of XPO and they believe, as we do, that the best way to excel in the present is to have a strong focus on the future. We are pushing the boundaries of supply chain thinking and disrupting the industry in the best possible way."

The new distribution center is located in Segro's East Midlands Gateway logistics park and therefore benefits from direct access to the M1 freeway and East Midlands Airport, as well as the local rail freight station, which offers connections to the major British ports of Southampton, Felixstowe and London Gateway, as well as the Eurotunnel.