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drops Gist and MB

3rd April 2003, Page 13
3rd April 2003
Page 13
Page 13, 3rd April 2003 — drops Gist and MB
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• by Jennifer Ball Marks & Spencer (M&S) has halved its general warehouse contractors from four to two, leaving Gist and Tibbett &, Britten (T&B) out in the cold in a bid to save around £20m a year.

The retail giant says that Exel, which currently manages its Enfield distribution centre, will now manage a further six sites including the two distribution centres currently managed by Gist at Swindon and Westfield.

Northampton-based Christian Salvesen will continue to run another three warehouses.

Under the deal, around 2,000 staff will transfer to Exel under TUPE conditions and all seven sites will be under Exel management by early autumn.

David Norgrove, M&S director of clothing, says: "The UK general merchandise logistics review aims to streamline M&S's supply chain, from raw material to customer, to deliver with speed and flexibility.

"This was a very difficult decision to make. We received four excellent tenders and we thank Gist and Tibbett & Britten for the very professional service in general merchandise warehousing that they have offered us over many years."

Perry Watts, Exel's managing director for retail and consumer goods says: "Our mission over the next five years is to deliver an industryleading approach that improves customer satisfaction throughout the national supply chain network."

While Gist and T&B will no longer run general merchandise warehousing, Gist will continue to operate its food supply chain and T&B will remain a partner in the general merchandise transport network.

Martin Gwynn, managing director of Gist, says: 'While we are naturally disappointed to be relinquishing these locations, Gist continues to operate as M&,S's major food logistics partner. This a partnership which spans over 30 years and is one of the oldest examples of outsourced logistics contracts in the industry."

T&B chairman John Harvey adds that it is disappointed that M&S did not accept its proposals, but is pleased that it remains a significant customer of the group.

• E-mail: jenniferhall@rbi.co.uk