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.