GXO to lead BT’s supply chain outsourcing

Rhea-AI Summary

BT Group has partnered with GXO Logistics to outsource and transform part of its supply chain in the UK. This long-term agreement aims to support BT's network build activities, servicing over 15 million customers. Approximately 300 BT employees will transfer to GXO under a TUPE agreement, while 300 third-party agency roles will be retained. The partnership aligns with BT's strategy to streamline operations and continues its modernization efforts, previously achieving £1 billion in cost savings 18 months early.

Positive

• Long-term partnership with GXO to enhance supply chain efficiency.
• Support for BT's ambitious fixed and mobile network build initiatives.
• Successful cost savings of £1 billion achieved 18 months early.

Negative

• None.

LONDON, U.K., Feb. 09, 2022 (GLOBE NEWSWIRE) -- BT Group (BT) and GXO Logistics, Inc. (NYSE: GXO), today announced a partnership to outsource and transform part of BT Group’s supply chain across the UK as part of a new, long-term relationship.

BT’s supply chain provides logistics support across all of BT Group’s operations, including supporting the Group’s fixed and mobile network build activities by transporting stock and replenishing supply stores, helping to keep more than 15 million residential and business customers connected.

The new partnership with GXO forms part of BT’s ongoing strategy to simplify and modernise its business, which continues to make strong progress. BT will be outsourcing its core warehouse and transport capabilities, while ensuring that the Group’s market-leading next generation network build plans remain on track.

For BT supply chain colleagues in warehouse, transport and some support roles - around 300 colleagues in total - there will be a proposed transfer to GXO under a Transfer of Undertakings (Protection of Employment) or “TUPE” agreement. A further 300 third-party agency support roles will continue their work under the terms of the partnership. BT will retain critical expertise to ensure continuity of service.

“Our partnership with GXO brings us to an important milestone in our transformation programme as we simplify BT,” said, Cyril Pourrat, Chief Procurement and Supply Chain Officer at BT Group. “By working with a market leading logistics company, we’ll create opportunities to improve our service and support BT’s ambitious fixed and mobile network build plans as we transform the business into an organisation that delivers exceptional service, sustainable operations and value for our customers and our colleagues.”

Gavin Williams, Managing Director of GXO UK and Ireland, said: “We’re proud to announce an expansion of our long-term relationship with BT that makes us their preferred partner for all supply chain activities. GXO will be supporting BT’s supply chain as it delivers its ambitious consumer and engineering activities. We’re going to deploy our technological expertise for a new end-to-end systems infrastructure that supports BT’s growth in fibre technology across the U.K.”

In 2021, as part of its wider modernisation programme, BT Group announced improvements to its supply chain and procurement operations, including establishing BT Sourced as a new, standalone procurement company within the Group alongside its supply chain business. BT is making good progress on its business transformation programmes to create a stronger, better BT for our customers, the country and colleagues by modernising and bringing down costs.

In November 2021 the company announced that it had achieved its £1bn cost savings target 18 months early and brought forward its FY25 target for £2bn of savings to FY24.

Notes to Editors:

• Pelipod, the UK’s secure, storage box distribution and collection service, which is wholly owned by BT Group, and BT’s final mile supply chain operations, are outside the scope of this new partnership agreement with GXO.
  

About BT

BT Group is the UK’s leading telecommunications and network provider and a leading provider of global communications services and solutions, serving customers in 180 countries. Its principal activities in the UK include the provision of fixed voice, mobile, broadband and TV (including Sport) and a range of products and services over converged fixed and mobile networks to consumer, business and public sector customers.

For its global customers, BT provides managed services, security and network and IT infrastructure services to support their operations all over the world. BT consists of four customer-facing units: Consumer, Enterprise, Global and its wholly-owned subsidiary, Openreach, which provides access network services to over 650 communications provider customers who sell phone, broadband and Ethernet services to homes and businesses across the UK.

For the year ended 31 March 2021, BT Group’s reported revenue was £21,331m with reported profit before taxation of £1,804m.

British Telecommunications plc is a wholly-owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on the London Stock Exchange.

For more information, visit www.bt.com/about

About GXO Logistics

GXO Logistics, Inc. (NYSE: GXO) is the world’s largest pure-play contract logistics provider in a $430 billion total addressable market that is benefitting from the rapid growth of ecommerce, automation and outsourcing. GXO is committed to providing a diverse, world-class workplace for approximately 95,000 team members across more than 860 warehouse locations totaling approximately 200 million square feet. The company partners with the world’s leading blue-chip companies to solve complex logistics challenges with technologically advanced supply chain and ecommerce solutions, at scale and with speed. GXO corporate headquarters is in Greenwich, Connecticut, USA. Visit GXO.com for more information and connect with GXO on LinkedIn, Facebook, Twitter,  Instagram and YouTube.

Media contacts

Anne Lafourcade 
+33 (0)6 75 22 52 90 
anne.lafourcade@gxo.com 

Matthew Schmidt 
+1 203-307-2809 
matt.schmidt@gxo.com 

FAQ

What is the partnership between BT Group and GXO Logistics?

BT Group has partnered with GXO Logistics to outsource and transform part of its supply chain operations across the UK.

How many employees will transfer to GXO Logistics under the TUPE agreement?

Approximately 300 BT supply chain colleagues will transfer to GXO under the TUPE agreement.

What are the benefits of BT Group's partnership with GXO?

The partnership aims to streamline BT's supply chain, supporting its network build activities and improving service delivery.

What previous cost savings has BT Group achieved?

BT Group achieved £1 billion in cost savings 18 months ahead of schedule, part of its broader modernization efforts.