News / Wincanton and DHL lose warehouse contracts as Tesco trims distribution

© Mark Eaton

Tesco is to take back in-house all the warehousing operations managed by Wincanton and DHL as it simplifies its distribution network.

The move involves the retailer’s warehouse in Snodland, Kent, operated by Wincanton, and a DHL-run hanging garments shared distribution centre in Daventry.

A spokesperson for Wincanton declined to comment on the number of staff at the warehouse, but said: “No other Wincanton operations for Tesco are affected by this announcement.

“This was the only warehouse operations Wincanton was managing for Tesco, although we do offer a range of other supply chain services to the customer.

“We do not yet have a deadline, but we’re working closing with Tesco to manage the transition.

“Tesco is a long-term and valued partner and we will be working closely with them to manage the transition of the staff, whose job security is our top priority at this time.”

DHL operates the Daventry facility, from which Tesco will withdraw and move its clothing to a Tesco centre in the same town.

A spokesperson for DHL told The Loadstar: “In response to an evolving retail sector, Tesco proposes to simplify its logistics operations by bringing in-house its hanging garment and frozen warehouse operations, currently managed by DHL, and re-tendering its transport operation. Affected staff have been informed of the situation and at the appropriate time we will commence TUPE [Transfer of Undertakings – Protection of Employment] consultations. We would like to thank staff for their ongoing commitment and will continue to do all we can to support them at this time.”

Tesco reported one of the biggest losses in British corporate history in 2015 – a £6.4bn pre-tax deficit – and is also cutting the number of distribution centres in the UK from 25 to 23, amounting to some 500 job losses.

It is closing its Welham Green DC , with 444 job losses, and moving groceries to its Reading centre. And it is bringing most of its general merchandising to Middlesbrough, closing Chesterfield, with 207 jobs lost.

The retail giant said it was additionally “simplifying the management structure across all distribution centres”.

That would result in 364 job losses, bringing the total to more than 1,000.

However, 533 jobs are being created in Reading, Middlesbrough and Daventry, and the firm says it expects to find new roles for some staff affected by the changes.