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Sainsbury’s, the major supermarket chain, has announced a significant overhaul and consolidation of its logistics operations, with expected implications for approximately 7,000 employees. As part of this strategy, 3,000 current Sainsbury’s staff members will transfer to one of its three logistics partners, namely DHLWincanton, and GXO Logistics. Sainsbury’s will invest £220m over the next three years as part of a “bold” plan aimed at simplifying its logistics and supply chain network.

Additionally, another 4,000 employees from the three logistics firms will relocate to one of the other partner businesses. The restructuring initiative aims to combine various logistics contracts across the UK into only three agreements, with each contract catering to a different product category. This marks a departure from Sainsbury’s previous approach of having separate contracts for various products in different locations.

The company intends to transition to “three dedicated partnerships across transport; food; general merchandise and clothing” by the end of 2024. The proposed changes are expected to enable Sainsbury’s to operate on a national scale, leveraging the expertise of its partners to enhance customer service, improve availability, foster innovation, and facilitate the exchange of industry best practices…

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