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Whitbread announces rapid supply chain expansion

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Posted on 2/04/2013 by Wayne Brophy FCILT

Whitbread has announced that it is looking to accelerate the expansion of its supply chain network to help boost growth within the company.

The organisation has highlighted the need to support its brands, such as Premier Inn and Costa Coffee, over the coming years and improving its supply chain has been noted as a potential factor in this move. Whitbread announced that it has extended its working relationship with Kuehne + Nagel for another five years which will increase increase capacity while opening new operations at a distribution centre in Trafford Park two years ahead of schedule.

Officials noted that Kuehne + Nagel will be responsible for the conversion of an existing facility in the Manchester region. It will be turned into 165,000 sq ft of multi-temperance, multi-user warehousing which will have a main focus on the food service industry. Whitbread will be using the distribution centre to supply their clients based in the north of England. It's Wellingborough facility will be dedicated to serving the south of the country while both of them will be supported by radial cross-dock locations.

Brodie McMillan, logistics director for Whitbread, said: "Whitbread requires a supply chain model that not only adapts to meet the needs of our growing business, but that also supports our environmental objectives. We have invested in developing our partnership with Kuehne + Nagel and we trust them to deliver."

Whitbread's entire supply chain and logistics system currently handles around 34 millions cases on an annual basis, producing over 1,000 food and 1,000 non-food lines on a 24/7 basis. This latest announcement will help to boost these operations, although it is not yet known whether it will affect the amount of supply chain jobs at the company.

The firm's Premier Inn brand is one of the most recognised hotel branches in the UK providing low-cost accommodation for both holidaymakers and business clients alike. Across the entire British Isles, and Ireland, there are over 580 hotels with around 40,000 rooms. It was also the first branch to sign up with the national tourist board VisitBritain ensuring that the best quality is maintained across all outlets.

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