Sainsbury’s puts 3,000 roles into consultation in supply chain shake-up

The retailer is planning a move to three dedicated logistics partnerships across transport, food and general merchandise and clothing by the end of 2024, allowing Sainsbury’s to operate its supply chain “at a national level for the first time”.

Wincanton will handle transport operations for Sainsbury’s, while GXO will handle fresh and frozen at several warehouses. DHL will take on additional warehouse operations for Argos, Habitat and Tu Clothing and will also handle warehousing and transport for general merchandise home delivery.

Sainsbury’s is planning on transferring 3,000 of its staff to DHL, GXO and Wincanton over the course of 2023 and 2024. Another 4,000 colleagues already working at the providers will also be affected.

Sainsbury’s said the latest announcement was part of its £220m investment back into its logistics network over the next three years.

The grocer also said simplifying how the partnerships work will aid Sainsbury’s in meeting its 2025 carbon reduction targets.

Sainsbury’s chief executive Simon Roberts said: “We know these are big, bold changes and we have invested a huge amount of time planning this transformation to make sure it is successful. We believe our logistics and fulfilment operation will be one of our key competitive advantages in the future and today’s announcement will benefit our whole network through knowledge sharing and increased innovation. We’re confident that these changes will help us continue to invest where it will make the most impact for customers, now and in the future.

“We understand that this is an important announcement for affected colleagues within Sainsbury’s, Argos and across our logistics partners and we will support them through this consultation process. With these changes, our focus is on improving the service we offer our stores and customers, accessing global expertise, and providing new career paths for the future – no matter which partner our colleagues are working for.”