The Rise of Value-Added Services

Logistics is no longer just about transport, writes Emma Verkaik, CEO of the BCMPA – British Association for Contract Manufacturing, Packing, Fulfilment & Logistics.

The role of logistics within the wider supply chain has evolved dramatically in recent years. Once viewed primarily as the movement and storage of goods, today’s logistics landscape is increasingly defined by its value-added services (VAS) – from co-packing and kitting to quality control, retail-ready displays, and sustainable packaging solutions.

This shift is not just incremental. It represents a structural change in how supply chains are built and managed and reflects the pressures brands face to meet rising consumer expectations, respond to fast-changing retail environments, and deliver on sustainability goals. Across the BCMPA membership, value-added logistics is no longer a secondary service, it’s the core of modern supply chain strategy.

Flexibility is the New Standard

Today’s supply chains must be built for agility. Lead times are shorter, demand more volatile, and customisation increasingly expected. Whether it’s assembling promotional displays for seasonal campaigns, reformatting packaging to meet retailer requirements, or adapting fulfilment to support both B2B and D2C channels, logistics providers are being asked to do more, and faster. BCMPA member Charles Kendall Freight highlights this trend: “Logistics are no longer isolated from other business functions; it’s becoming embedded in the entire contract manufacturing lifecycle – from raw material sourcing to final-mile delivery,” says Andy Gilpin. This sentiment reflects a broader trend across the industry, where logistics partners are taking on a more consultative, problem-solving role.

And this adaptability extends beyond co-packing. Kinaxia Logistics recounts a project where they helped a major client transition from plastic to cardboard packaging with a child-proof locking mechanism requiring highly precise dimensions. The company’s engineering team designed custom jigs lined with Teflon to achieve the exact specifications, showing how technical expertise supports evolving product needs.

Quality Control and Enhancing Customer Experience

Increasingly, logistics providers are being entrusted with product quality assurance to maintain brand reputation and retail standards. Third party logistics provider and BCMPA member, Kammac shared a recent example: “A company supplying soft furnishing products for a major retailer needed support with quality control due to issues like loose threads and contamination. We took on the project and within a four-week timeframe were QCing 45,000 single items,” says Peter Edwards, Kammac’s Marketing Business Partner. This illustrates how value-added logistics is extending into product inspection and rework, ensuring items meet customer and retailer expectations before they reach stores.

Charles Kendall Freight also reinforces this point through its tailored fulfilment solutions: “We successfully picked and dispatched on average 8,000 B2C orders monthly, hitting the agreed 98.5% KPI of picked and delivered within 48 hours of order receipt,” says Site Manager, Andy Gilpin. Its approach includes managing up to 20 different items per box, carefully arranged to maintain brand integrity, showcasing the precision and attention to detail demanded by modern logistics.

Sustainability Driving Operational Evolution

Sustainability is now a core driver of logistics strategies. Kammac stresses the growing importance of environmental credentials: “Sustainability has become a big one for us with consumer expectations for greener products and more sustainable supply chains. We’ve seen this within business tenders requiring ISO 14001 (Environmental Management System) Certification,” says Peter Edwards.

GXO echoes this commitment: “Through an intensive review of materials in the supply chain, GXO was able to enhance the recyclability of Virgin Media O2’s packaging and reduced single-use plastic by over 97%,” adds Nila Patel-Cooper, Business Development Manager. Its approach includes eliminating adhesives from labels and adopting water-based application methods, reflecting the broad range of innovations helping brands meet their ESG targets.

Integration and End-to-End Supply Chain Solutions

Logistics is increasingly integrated into broader contract manufacturing and packing operations, with providers expected to deliver seamless end-to-end solutions. Warren Hill, Business Development Manager at Kinaxia explains: “Clients now expect contract manufacturers and packers to offer integrated solutions that include inbound logistics, warehousing, inventory management and outbound distribution all under one roof.” Its established contract packing operation combined with a national logistics network supports this integrated approach. Similarly, Kammac points to the value of global partnerships: “We see partnerships continuing to grow, and for us that means providing end-to-end solutions through our global network as part of the Elanders Group,” says Edwards.

Towards Strategic Collaboration and Innovation

The examples from BCMPA members collectively indicate a shift from transactional logistics services to strategic collaboration. Flexibility, sustainability, quality control, and integration are no longer optional but fundamental to meeting the complex demands of today’s supply chains.

GXO’s response to evolving market dynamics, including downsizing inventory and favouring shared-user environments, is an example of how providers are adapting to stay agile, efficient, and competitive. Brands are looking for supply chain partners who can adapt quickly, whether that means scaling capacity for seasonal peaks, supporting D2C fulfilment, or integrating sustainability into every step of the operation. “It’s no longer just about speed or cost; it’s about being agile, insightful, and aligned with the brand’s goals,” says Nila Patel-Cooper.

At the BCMPA, we’re seeing consistent growth in demand for value-added logistics across many sectors including food and drink, beauty, personal care, pet care, and homewares. As supply chains become more complex, our members are doing more than simply moving goods; they’re providing flexible, end-to-end solutions that help brands respond to challenges, meet evolving expectations, and deliver outsourced value at every stage.

Coca-Cola HBC Adds Extra Fizz to its Partnership

Coca-Cola HBC, the strategic bottling partner of the Coca-Cola company on the island of Ireland, has extended its long-term partnership with Wincanton, the leading supply chain partner to UK businesses. 

The contract extension until the end of 2026 builds on the two brands’ strong partnership which began in 2016 and marks a decade of collaboration.

As part of this collaboration, Wincanton will continue to provide warehouse operations management at Coca-Cola HBC’s dedicated facility in Lisburn, Northern Ireland, which handles over 52 million cases of popular brands such as Coca-Cola, Fanta and Monster per year.

Wincanton is also responsible for delivering operational efficiencies, incorporating volumes driven by the Deposit Return Scheme in the Republic of Ireland whilst also bringing logistics expertise to the facility to support the company’s ongoing growth.

Joanna Sneddon, Coca-Cola HBC Ireland and Northern Ireland Supply Chain Director said:

“Delivering high-quality products and service to our customers is our priority. We are pleased to grow our partnership with Wincanton on our journey to develop world class logistics service over the coming years.”

James Hurrell, MD for Grocery & Consumer at Wincanton, added:

“With its vision to be the world’s leading 24/7 beverage partner, we’re delighted to be supporting Coca-Cola HBC and its unique portfolio on its journey to exponential growth. 

“We look forward to continuing our work together and celebrating a decade of growth, innovation, and automation together.” 

The extended partnership also reflects a shared commitment to sustainability and innovation. Both companies are actively investing in greener supply chain practices, with Wincanton introducing initiatives to reduce carbon emissions and Coca-Cola HBC advancing its World Without Waste goals. This continued alignment on responsible logistics and environmental stewardship ensures that the partnership not only delivers operational excellence but also supports broader sustainability objectives.

Alongside its extended partnership with Coca-Cola HBC, Wincanton is undergoing significant transformation as it strengthens its market position through strategic acquisitions and partnerships. In early 2024, the company was acquired by GXO Logistics in a £762 million deal, which is currently under review by the UK’s Competition and Markets Authority (CMA). While the regulatory process continues, Wincanton remains focused on innovation and operational excellence. In a move to advance its automation capabilities, Wincanton also acquired inteq, a UK-based specialist in warehouse execution software and robotics integration. This acquisition brings inteq’s proprietary technology and expertise into Wincanton’s portfolio, enhancing its ability to deliver cutting-edge, efficient logistics solutions across its network.

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NHS Supply Chain Awards LSP Contract

NHS Supply Chain has awarded the contract for the management of its logistics services to GXO. The company will be taking over the contract for storing and delivering healthcare products to the NHS on behalf of NHS Supply Chain from October this year, when the current outsourced Logistics Services Provider’s contract expires. The contract is for an initial period of seven years, with a possible extension of up to 36 months.

NHS Supply Chain chief executive officer, Andrew New said: “We’re pleased to announce GXO as the new service provider for our logistics services. Running our eight distribution centres across England and keeping our significant fleet of more than 300 delivery vehicles on the road is a key part of what we do to supply the NHS with more than 35 million healthcare products every year. We’re an important part of the healthcare system, ensuring the NHS can put patients first. As well as running our normal logistics services, looking forward to the future, we will be developing our logistics services with GXO to best meet the growing needs of the NHS.”

“We are extremely proud to have been selected to serve the NHS as its new logistics partner,” said Gavin Williams, managing director, GXO UK & Ireland. “Combining our sector experience with the technology expertise that supports many of the UK’s leading businesses will optimise the NHS’s logistics services for healthcare providers and taxpayers. We are committed to an excellent quality of service to hospitals and patients at home, increasing productivity and supporting our NHS so that it can focus on patients, its ultimate priority.”

GXO will be contracting with Polar Speed to provide NHS Supply Chain’s Home Delivery Services. There will be a transition period over the next few months to ensure a smooth handover of sites and teams from the current logistics provider to GXO and Polar Speed, ensuring the NHS continues to receive the service it needs.

The role is to source, deliver and supply healthcare products, services and food for NHS trusts and healthcare organisations across England and Wales. Supply Chain Coordination Ltd (SCCL) is the company at the heart of NHS Supply Chain. It provides oversight and operational management for NHS Supply Chain and its service providers. SCCL is the legal entity through which NHS Supply Chain undertakes its procurement services and transacts with customers and suppliers. Whilst its shares are owned by NHS England, SCCL is a separate organisation.

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Iceland Foods Opens Warehouse

Iceland Foods has opened the doors to a 500,000sq ft warehouse in Warrington which will be operated by GXO Logistics. The £100m facility will employ more than 750 people.

Located at Omega Park, the new site is Iceland’s largest warehouse to date. It will serve as a major hub for distributing products to over 350 Iceland stores nationwide, with the potential to expand its reach to 500 locations in the future.

The warehouse, which includes ambient, chill, and frozen chambers, has been designed with future growth in mind, incorporating state-of-the-art technology to drive efficiency and ensure a resilient supply chain.

Iceland’s investment also supports a more sustainable operation, with the site partly powered by solar panels to increase green energy consumption.

Tarsem Dhaliwal OBE, Iceland Foods chief executive (pictured right), said: “We’re always looking at ways to make our business stronger, more efficient, and better for our customers. Investing in our supply chain is a huge part of that, and this new state-of-the-art warehouse is a game-changer.

“It gives us the capacity to grow, improve service, and future-proof our operations for years to come. Warrington means a lot to me personally, as the place where I grew up, and it gives me particular pleasure to have been able to make such a major investment here.

“We’re proud to be employing more than 750 people and delivering real economic benefits to the local community.”

Gavin Williams, GXO MD for the UK and Ireland (pictured left), said: “We’re proud to be delivering the next phase of our logistics partnership with Iceland as we support their long-term ambitions with a warehouse that is fit for the future.

“The new Warrington regional distribution centre is great news for the local community and for our colleagues, who will help us assist Iceland’s growth plans across the country.”

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Heineken Signs Multi-Year Agreement

GXO Logistics, Inc., a pure-play contract logistics provider, announced today that it has signed a multi-year agreement with Heineken, one of the world’s largest brewing companies, to continue to operate its warehouse, distribution and secondary transport network to retail and wholesale outlets across the U.K., as well as exclusively to its entire U.K. pub estate – Star Pubs & Bars. This network manages more than 500,000 deliveries per year to more than 8,000 customers from point of production to retail and wholesale delivery.

“We are pleased to continue our partnership with HEINEKEN and look forward to a bright future together,” said Richard Cawston, President, Europe, GXO. “Over the past two years, we’ve made significant progress transforming our operations and delivery network to make it simpler, stronger, more efficient and more sustainable. Together, we will continue to invest to enhance efficiency and service to support HEINEKEN’s expected growth. It’s a great partnership for us, our team members and the pub industry in the U.K.”

“We’ve worked closely with an experienced partner in GXO on developing a multi-year investment and transformation program to ensure the network is fit for future,” said Boudewijn Haarsma, Managing Director, HEINEKEN UK. “Our joint plan, which focuses on investing into modernizing the network, underpins our service to customers and our commitment to continuous improvement and sustainability.”

GXO operates one of the most extensive and complex warehousing and transport delivery networks for many of the U.K.’s leading food, beverage and grocery brands. GXO’s operations network for HEINEKEN, the leading beer, cider and pub company in the U.K., includes four regional distribution centres, 18 local delivery platforms and transit depots, over 400 vehicles and employs more than 1,500 team members. An industry leader in ESG solutions, GXO has shortened transit times and lowered CO2 emissions for this network through enhanced delivery schedules and investments in cutting edge technology.

Headquartered in Edinburgh, HEINEKEN is the UK’s leading pub, cider and beer business. The company owns around 2,400 pubs as part of its Star Pubs & Bars business and employs around 2,100 people. It has produces beers from its breweries in Manchester, Tadcaster and London and ciders from its ciderie and mill in Herefordshire. Its unrivalled portfolio of brands includes Heineken® 0.0, Heineken®, Foster’s, Strongbow, Cruzcampo, John Smith’s, Inch’s Cider, Amstel, Birra Moretti and Old Mout, backed by a full range of niche and specialty brands. It also owns Beavertown and Brixton Brewery.

GXO graduate swaps Kent for Kampala

Tessa Wilson, a Graduate Management Trainee at GXO UK and Ireland, has commenced a six-month secondment as a Project Officer for the second phase of Transaid’s Professional Driver Training Uganda project, helping the country to respond to the huge rise in demand for HGV and PSV drivers.

The appointment sees Tessa swap her previous placement at a GXO facility in Kent for Kampala’s tropical climate, working closely with Transaid’s non-governmental organisation (NGO) partner, the Safe Way Right Way Driver Training Centre, as well as local truck and bus fleet operators.

Tessa explains: “This is one of the biggest challenges I’ve taken on and I’m really enjoying the opportunity to work in such a different environment. I’m only a few weeks in, but I’ve already learnt new skills and it is wonderful to be contributing to such a hugely important project.”

During the secondment Tessa will split her time between the training centre and meetings with local businesses running commercial vehicle fleets, to reinforce the importance of professional driver training and the opportunities and benefits of hiring female drivers.

Neil Rettie, Transaid’s Road Safety Project Manager, says: “Thanks to the continued support from GXO we can deliver a level of resource at a local level which otherwise wouldn’t have been possible full-time.

“The value Tessa is bringing cannot be underestimated; plus, we know from experience that these placements can go a long way to helping secondees develop their skills and confidence in an environment you just can’t replicate at a UK level.”

Transaid and Safe Way Right Way have been tasked with training 750 drivers in Uganda between April 2021 and April 2023, of which at least 25 should be female – a goal which has already been exceeded, with more than 40 female drivers having completed the training to-date.

This project is an initiative of the GIZ Employment and Skills for Development in Africa (E4D) programme, which is funded by the German and Norwegian governments. It is being implemented jointly by Transaid and local NGO Safe Way Right Way on behalf of GIZ E4D.

The Professional Driver Training Uganda project is one of Transaid’s largest driver training programmes, currently running alongside similar initiatives in Ghana, Mozambique, Tanzania and Zambia.

Tessa picks up the baton from colleague Abbie Rennison, who had previously been on secondment from GXO on the project. The opportunity to participate in secondment programmes is one of the many benefits open to Transaid corporate members.

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