Salvesen pays for boost in Sainsbury's cool workload
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• by Charles Young Christian Salvesen is the latest haulier to run into problems over a chilled food contract for a major supermarket.
Last week the logistics giant admitted that it had struggled to meet a sudden upturn in work on a contract for J Sainsbury based at its Shire Park, Worcestershire site and was forced to employ around 100 extra staff. The problem cost Salvesen £3m.
In October 1998 Salvesen took on a chilled food distribution contract at Shire Park, which had previously dealt solely in ambient distribution.
The difficulties have only just come to light as Salvesen's control procedure was previously based on capital expenditure and did not monitor increases in staff numbers. The company says the problem was a oneoff and it is still moving ahead with plans to build a pan-European logistics business.
Last year BOC Distribution Services pulled out of a large chunk of its temperature controlled net work following problems with Sainsbury con tracts based at the Harlow and Bristol regional distribution centres.
In August BOC put all its nonMarks & Spencer and Asda distribution work up for sale— but other hauliers were reluctant to take over the loss-making contracts, More than 400 jobs were lost as a result.