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Costco Wholesale signs new reverse logistics contract to manage waste


Costco Wholesale has signed a new contract with XPO Logistics to manage its reverse logistics operations for its network of 28 UK warehouses.
The contract will see XPO receive and unload vehicles carrying store waste, handle and load shipping containers with OCC (old corrugated containers) and 98:2 plastic. The company will also securely dispose of electrical waste. XPO will also process returnable transit packaging, recycle scrap metal and hard plastics and dispose of recycled office materials and waste wood for Costco Wholesale.

Gavin Williams, business unit director – consumer and reverse logistics at XPO Logistics said the company’s Lutterworth site offered a complete one-stop-shop solution for Costco. “We can receive our customer’s vehicles 24/7 with a 30-minute average turnaround,” he said.

Ian Chalmers, imports and logistics director at Costco, said that the new agreement provided clear benefits for the retailer. “We now have access to numerous routes across the XPO network, and the Lutterworth site offers us the ability to roll vehicles in and out within structured times, avoiding long queues. This flexibility, and the close proximity of Lutterworth to our new distribution depot in Crick, has reduced our vehicles’ mileage and added a great deal of value,” he said.

Image credit: XPO Logistics

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