Big deal: Linfox in $2b contract with National Foods


Linfox's $2 billion, decade-long distribution deal with National Foods 'among single largest logistics contracts'

Big deal: Linfox in $2b contract with National Foods
Big deal: Linfox in $2b contract with National Foods
Linfox has signed what it is calling one of the single largest transport and logistics contracts in history – a $2 billion, decade-long distribution mega-deal with National Foods.

The contract will see Linfox Logistics manage the "majority" of the national distribution task for the food and beverage manufacturer.

Linfox will design and manage a new network of distribution centres and perform linehaul and local deliveries.

Nearly 300 people will be employed to service the contract, Linfox Logistics CEO Michael Byrne says.

Byrne says it is one of the largest contracts in the company’s portfolio and in the Australian logistics market.

"Linfox helped review National Foods’ Australian supply chain operations and developed a powerful supply chain solution that will establish a state-of-the-art distribution centre network and specialised delivery vehicle fleet," he says.

"We are using cutting-edge SAP IT to provide leading transport and warehouse systems to effectively manage our customer’s distribution operations."

Bryne calls National Foods an "iconic" business.

"The National Foods business has grown rapidly in the last two decades and our expertise will help them achieve significant distribution efficiencies," he says.

"We have worked with National Foods for several years and share their commitment to safety and operational excellence. We look forward to partnering with National Foods to deliver new value in their supply chain functions."

National Foods – a subsidiary of the Japanese-owed Kirin group – is one of Australia’s largest food and beverage companies, with core activities in milk, fresh dairy foods, juice, soy beverages and specialty cheese across every state market.

Brands under the National Foods banner include Dairy Farmers, Berri, Coon, Pura, King Island, Farmers Union and Yoplait.

Linfox will help the company reduce supply chain complexity while increasing visibility, National Foods’ logistics chief Conor O’Malley says.

He says the Linfox solution will deliver a "best-in-class service to our customers".

"I am confident that working together in a strategic and strongly commercial partnership, both National Foods and Linfox will deliver improved value to both customers and shareholders," he says.

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