GXO signs multi-year agreement with Kellogg

PRESS RELEASE

GXO wins new contract in Belgium to consolidate warehousing services into a semi-automated facility

GXO and Kellogg, which have partnered since 2008, will continue to deliver continuous improvement initiatives at operations that span five countries and eight sites

GXO’s technologies have improved speed, efficiency and environmental benefits for Kellogg

GXO Logistics, Inc. (NYSE: GXO), the world’s largest pure-play contract logistics provider, announced today that it has signed an agreement to extend and expand its partnership with Kellogg, the world’s leading producer of cereal and a leading producer of snack foods. The renewed agreement includes solutions in the U.K., Spain, Germany and Poland as well as a new facility in Belgium.

“We’re delighted to extend and expand our partnership with Kellogg and we look forward to continuing to add value to Kellogg’s logistics operations,” said Richard Cawston, President, Europe, GXO. “We will continue to make strategic investments in automation and apply our industry-leading experience and expertise to help Kellogg optimize its production support, warehousing, delivery execution and co-packing activities.”

The companies are partnering to implement technologies and industry-leading practices at eight sites across Europe by implementing continuous improvement initiatives to increase productivity and speed while reducing costs. These initiatives include technology investments, process improvements and knowledge-sharing.

Bruno Esmeraldo, European Logistics Director, Kellogg, said, “Working with a data-driven company like GXO helps us improve operational and service performance visibility and enable greater proactive decision-making. Our shared commitment to operational excellence, together with right-fit technology solutions supporting our ESG goals, is a solid foundation for a future-proof business.”

GXO and Kellogg have enjoyed a longstanding partnership in several European countries.

• In Belgium, GXO will operate and optimize Kellogg operations in a brand new 650,000-square-foot semi-automated facility in Mechelen commencing in June 2023. GXO’s solutions at this facility will include warehousing and a transport shuttle service between the Kellogg factory and the facility plus an option for further value-add co-packing services.
• In the U.K., where the companies began working together in 2008, GXO manages three warehouses for Kellogg and employs approximately 350 team members.
• In Spain, GXO and Kellogg began working together in 2018, and today GXO manages approximately 500,000 square feet of dedicated space in two warehouses with over 100 team members for Kellogg, enabling supply to the Iberian Peninsula, the South of France and the U.S.
• In Germany, GXO and Kellogg recently extended their long-standing partnership at the site in Bremen, Germany, which employs 71 team members and serves the entire German market.
• In Kutno, Poland, a 290,000-square-foot warehouse employs about 120 people and provides storage, pick, pack and value add co-packing services. GXO recently deployed innovative automation and technologies at the Kutno site, including a Pallet Shuttle Racking System, improving storage density and efficiency. Through this automation, GXO has shortened the palletting process by 90% (from 24 to 1.5 minutes), reduced plastic consumption by 85% (from 15 to 1 layer) and improved ergonomics and safety for team members.

As part of the new agreement, GXO has implemented its Reflex web WMS at sites in Spain and the U.K. and will implement the same in Belgium. In addition, GXO is working with Kellogg to develop digital reporting metrics to further improve operational and service performance visibility and enable greater data-driven decision-making.