Arla Foods strengthens logistics network with new distribution centre

UK – Arla Foods, in partnership with XPO Logistics, has agreed a deal to open a new 285,000 sq ft central distribution centre (CDC) at Prologis’s RFI DIRFT scheme in Northamptonshire.

The facility will bring all of the dairy cooperative’s chilled dairy products, such as cheese, butter and yogurts, into a single, centralised location.

While specific details about the size and capacity of the centre were not disclosed, the emphasis on sustainability and efficiency suggests the implementation of state-of-the-art logistics technology.

This development aligns with Arla Foods’ broader strategic goals of enhancing operational capabilities and environmental sustainability in its operations.

Fran Ball, SVP UK supply chain for Arla Foods UK, said: “Consolidating our chilled pallet operations into a single, advanced facility in Northamptonshire is a strategic leap forward for Arla. By partnering with XPO Logistics and Prologis, we are improving the resilience of a critical part of our supply chain and making meaningful progress on reducing waste and road miles.”

The launch of this centre is a part of a larger effort by Arla to consolidate and optimise its distribution channels, likely influencing the broader logistics strategies within the UK’s dairy sector.

Dan Myers, managing director – UK and Ireland, at XPO Logistics, added: “Arla stands for quality, their products are loved and trusted by every household in the UK. This future ready CDC will play a key role in ensuring that Arla continues to deliver great products whilst improving the resilience, sustainability and efficiency of Arla’s supply chain. Working together, we’re driving positive strategic change which will support Arla’s business to continue to prosper today and tomorrow.”

The partnership between Arla Foods and XPO Logistics highlights a significant investment in infrastructure to support the distribution of dairy products, ensuring that the supply chain remains robust and adaptable to future demands.

Phil Oakley, SVP at Prologis UK, said: “Partnerships and developments like this play an important role in creating long term economic value for West Northamptonshire, helping to attract investment and underpin jobs across the region. At Prologis RFI DIRFT, we’ve built a community with the capacity and skills to support high-performing logistics operations like this one and we look forward to supporting Arla and XPO as the project moves forward.”

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