May 17, 2020

Supply chain synergies secure B&Q retail distribution for XPO Logistics

XPO Logistics
Norbert Dentressangle
UK procurement
Admin
2 min
B&Q has awarded the management of all its UK and Ireland retail and horticulture transport operations to XPO Logistics
Follow @SamJermy and @SupplyChainD on Twitter.



Following a strategic review of its supply chain operations, B&Q has awarded the management of all...

Follow @SamJermy and @SupplyChainD on Twitter.

 

Following a strategic review of its supply chain operations, B&Q has awarded the management of all its UK and Ireland retail and horticulture transport operations to XPO Logistics.

Part of the Kingfisher Group, B&Q is the largest home improvement and garden centre retailer in the UK, employing more than 30,000 people nationwide. The company stocks more than 40,000 products and welcomes more than three million customers every week.

Under a long-term agreement, XPO Logistics will take responsibility for the planning and national distribution of a wide range of goods direct to over 300 B&Q stores. This will involve XPO Logistics managing a fleet of 220 tractor units and 750 trailers, making up to 3,200 retail and horticulture deliveries per week in peak season, with support from a team of over 390 XPO Logistics colleagues.

The new contract builds on XPO’s existing relationship with the Kingfisher Group in Europe, which includes distribution for DIY retailer Castorama in France, and B&Q’s reverse logistics business in the UK.

Richard Cawston, Logistics Solutions Managing Director, UK and Ireland, for XPO Logistics, said: “This is an exciting new development for XPO Logistics, underlining our strength in innovative distribution solutions for retail.

“We look forward to working closely with B&Q to drive further supply efficiencies and deliver industry-leading service to every one of its retail outlets.”

XPO Logistics is a top ten global provider of cutting-edge supply chain solutions to the most successful companies in the world. XPO Logistics has 195 locations in the United Kingdom, including approximately 3.5 million square metres of warehousing, and over 15,000 employees. The company offers comprehensive solutions for transport, global forwarding and logistics, including e-fulfilment, reverse and temperature controlled logistics, VAS, bonded and COMAH warehousing, and the UK’s largest owned ADR pallet network. XPO Logistics serves customers in multiple verticals, including food and beverage, retail, aerospace, automotive, chemicals, high tech, pharmaceuticals, textiles and publishing.

XPO's corporate headquarters is in Greenwich, Connecticut USA, and its European headquarters is in Lyon, France. The company serves more than 30,000 customers worldwide with a highly integrated network of over 54,000 employees and 887 locations in 27 countries. The company holds an 86.25 percent controlling interest in Norbert Dentressangle SA. The remaining ND stock is traded as GND on Euronext Paris / Euronext London.

For more information, please visit: www.xpo.com

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Jun 16, 2021

EU and US agree end to Airbus-Boeing supply chain tariffs

supplychain
Boeing
Airbus
tariffs
3 min
Supply chains embroiled in Airbus-Boeing dispute will no longer be impacted by $11.5bn tariffs imposed on food and beverage, aircraft and tobacco

The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic. 

Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years. 

It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC. 

The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn. 

In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products. 

Boeing-Airbus dispute by the numbers  

  • The dispute began in 2004
  • Tariffs suspended for 5 years 
  • $11.5bn worth of goods affected by tariffs
  • $3.3bn in duties paid by businesses to date 
  • 15% levy on aircraft and 25% on non-aircraft goods suspended

Both sides welcome end to tariffs 

European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.

“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.

Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”. 

The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."

This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.

Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”

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