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Milupa switches to SPD

9th July 1987, Page 13
9th July 1987
Page 13
Page 13, 9th July 1987 — Milupa switches to SPD
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Which of the following most accurately describes the problem?

• Baby foods supplier Milupa is contracting out its warehousing and distribution business to NFC Distribution Group member SPD in a fiveyear deal worth £640,000 a year.

Under the contract, SPD will hold Milupa stock in its Nottingham warehouse, prior to distributing it to Milupa's customers in the Nottingham area and the North. Up until now, Milupa has run its own distribution wholly from its Uxbridge warehouse, with regional sub-contractors holding stock.

Milupa will still continue to supply its southern customers from Uxbridge, but by 1988 SPD is expected to take over the whole contract. SPD will use existing 32-tonne artics, and 16-tonne rigids to service the Milupa contract.