Bibby loses Xerox deal
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• Eighteen Bibby Distribution drivers could be transferred from its Milton Keynes depot to Rhys Davies' operation in Radlett, Herts, following its contract coup with Rank Xerox. But the future of the 9,300m2 depot remains uncertain.
Rhys Davies won the £1.25ma-year contract to handle Rank Xerox's south-east paper distri bution from Bibby after tendering which attracted competition from more than two dozen companies. The three-year contract begins on 1 February.
Rhys Davies already handles all Rank Xerox distribution elsewhere in England but was not expected to win this time, according to RX paper operations manager Chris Lofting: "We had not wanted to put all our eggs in one basket and Bibby has done a very good job for us.
The Rhys Davies bid was not the lowest, in fact four or five others came in within pence of each other, but Rhys Davies came in with a very good deal," he says. It promises cost reductions based on an open book policy between Rhys Davies and Rank Xerox with further savings likely to be achieved from selling spare capacity.
In a £250,000-a-year subpackage Rhys Davies will also provide national supplies packaging.
Last November Rhys Davies won the contract for the Midlands and western region deliveries for Rank Xerox.
Bibby is seeking replacement business while reviewing its operations in southern England.