By Carol Millett23 July 2024
A retendering of Jaguar Land Rover’s major UK line feed logistics contract has seen incumbent DHL lose out to rival bidders, with the delivery giant confirming that it will be exiting the deal next April.
JLR revealed its decision this week, but has yet to say which companies it has chosen to operate the contract at the manufacturer’s Halewood, Solihull and Castle Bromwich plants and how it will be divided. Industry sources say names in the frame include GXO and XPO.
In a statement JLR said: ”As part of normal business practice, JLR regularly reviews and tenders its supplier contracts to drive innovation and maintain efficiency and competitiveness. We are pleased to confirm we have reached agreement with a collection of world class line feed logistics partners.
”We are confident this mix gives us the right level of operational flexibility to deliver an all-electric range of modern luxury vehicles by 2030 and become carbon net zero by 2039 as part of our Reimagine strategy.”
JLR has moved to reassure workers at the three plants that it will be business as usual. In a statement to its workforce it said: ”Our new partners have been selected following a detailed tender process and will support the continuation of our Reimagine journey.
”Transfer of Undertakings Protection of Employment (TUPE) will apply to all affected employees and the suppliers will now work together to manage this process.”
It added: “It is important to note that this decision is not a reflection of the teams’ collective efforts and over the coming months we will work with all parties to ensure a smooth transition for people and operations. Please continue to act with kindness and show support to our supplier teams impacted by the change.”
DHL Supply Chain confirmed the loss of the contract. In a statement the company said: ”Following a review of its business practice, JLR has confirmed plans to transfer its operations based in Halewood, Solihull and Castle Bromwich to alternative providers effective April 1 2025.
“Affected staff have been informed of the situation and will shortly enter consultation with the company and union representatives to discuss transferring to new providers under TUPE regulations.
”DHL will continue to provide service to JLR’s logistics operations centre (LoC) and freight. We would like to thank our colleagues for their continued support and commitment throughout the partnership.”
