The 10-year partnership is expected to be in place by the beginning of June 2016, with Fowler Welch taking over the operation of all NDC transport operations.
Fowler Welch, which supplies warehouse and transport operations for retail customers, will work with Dairy Crest to provide storage and network solutions to manufacturers and growers in the Midlands.
Dairy Crest will continue to operate the warehouse and site functions including gatehouse, control room, customer services and stock management. It will maintain control of storing and distributing its stable of brands, including Cathedral City cheese, Country Life butter and spreadable, and Clover spreads.
100 staff to move to Fowler Welch
Subject to employee consultation and the completion of negotiations, around 100 Dairy Crest transport department employees will transfer to Fowler Welch.
Dairy Crest says that the partnership will build on current in-house operations and extend the site’s warehousing and transport operations to other chilled-food manufacturers.
Platform in the Midlands
Mark Allen, Dairy Crest chief executive, said that since the sale of the dairies business in December 2015, Dairy Crest has been looking to work with third parties to ensure the efficient use of supply chain assets, and to attract new clients.
Fowler Welch managing director, Nick Hay added that the agreement means the company will have achieved its goal of having a logistics platform in the Midlands, offering manufacturers and growers national reach to retailers on a shared-user basis.