Arla Foods and XPO Logistics to Launch Central Distribution Centre in the UK

Arla Foods, the UK's largest dairy cooperative, in collaboration with XPO Logistics, is set to establish a central distribution centre (CDC) at Prologis RFI DIRFT in Northamptonshire, UK. The new facility aims to centralize Arla's chilled dairy products, including cheese, butter, and yoghurts, into a single location. This move is expected to enhance the resilience of Arla's supply chain and facilitate more efficient distribution across the UK.

The CDC will be operational by late 2027, with XPO Logistics managing the project delivery and site operations. The initiative is part of a strategic partnership model where XPO Logistics supports Arla Foods beyond daily operations, bringing expertise in transformation and automation.

Investment in state-of-the-art automation by XPO Logistics will create skilled warehousing roles in the region. These roles will encompass automation operations, maintenance, quality, inventory control, and safety. XPO Logistics will provide appropriate training and upskilling for advanced automation as part of the recruitment and onboarding process.

Fran Ball, SVP UK Supply Chain for Arla Foods UK, stated, “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.”