Exel announces major co-packing contract with Heinz in UK

Exel’s rapidly growing expertise in servicing the specialist co-packing requirements of FMCG manufacturers has just received a further endorsement – this time from H J Heinz. The Company has recently appointed Exel to handle its co-packing operation for subsidiary John West Foods in Heinz’s own national distribution center (NDC) based in Wigan.

Exel, established as the world leader in supply chain management, won the John West rework operation in competition with four other companies after Heinz decided to consolidate John West logistics within its NDC under the management of its existing supply chain management provider. However, John West’s substantial co-packing requirement was ring fenced as a specialist operation which Exel was awarded as a result of its quality response to the tender as well as its highly successful track record in handling John West’s co-pack work before and immediately following the Company’s acquisition by Heinz.

“The contract with Heinz is a new and exciting departure for Exel,” says Tim Slater, Managing Director Development and Specialist Sectors of Exel in the UK. “While we have a growing portfolio of co-packing experience, supported by considerable investment in facilities and staff training within our own centres, we have not before managed such a service in another Company’s centre.”

Exel first began to handle co-packing for John West in 1994 with a one-off multi-pack promotion. At this time, the operation involved the equivalent of 50,000 cases per annum. By 2001, the throughput of this promotion had risen to 0.5 million cases but this was just part of a total 4.25 million cases handled annually by Exel in its wider re-work operation for the Company which included shrink wrapping, labelling, banding, remedial work and a number of quality assurance activities as well as promotions. One hundred and fifty people were now employed by Exel within each 24-hour period to service the operation. The new co-packing operation will account for 12,000 sq ft within the Wigan centre.

“The experience of our co-packing work for John West was really success-on-success,” explains Tim Slater. “We were able to save the client significant transport costs while helping to meet the evermore demanding distribution schedules of grocery retailers. It is increasingly important for leading logistics companies to provide manufacturers with added value services aimed at reducing pressures driven into the supply chain by the major multiples.”