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T&B loses its flagship RDC
Page 19
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LOGISTICS GIANT Tibbett & Britten has unexpectedly lost the job of managing the largest distribution centre throughout its UK operations after J Sainsbury decided to take the work in-house.
The agreement to run the 80,000m2 complex at Hams Hall in Warwickshire was originally due to last until 2005 but ended within nine months of starting.
However, Sainsbury's gives no hint of dissatisfaction about the way Tibbett & Britten has managed the centre since it opened in December.
The site has now reached an operational level where we want to integrate it into the whole organisation. We now have considerable expertise internally so that it makes sense for us to manage operations in-house," says a spokeswoman.
A Tibbett & Britten spokesman adds that the loss of work "is not expected to materially alter the current expectations of the group's 2003 or 2004 performance".
When the deal to run the Hams Hall site was first announced. Sainsbury's regional distribution director Phil Hull said there was a good cultural fit between the two companies. "We are confident that Tibbett 8z Britten is the right partner to help our supply chain to a position of leadership," he said.
The disclosure about the Sainsbury's deal comes as Tibbett & Britten announces a 14% fall in operating profits to £9.8rn during the first six months of this year compared with the same period last year.
Although profits almost tripled in the UK and Ireland they slumped in America and mainland Europe. Revenues jumped from £737m to £791m during the period.