BT Group Plans to Outsource UK Supply Chain Operation to GXO

The BT Group has this morning outlined new plans to outsource their supply chain operation to logistics firm GXO Logistics, including supporting the Group’s fixed broadband and mobile network build activities by transporting stock and replenishing supply stores, helping to keep 15 million customers connected.

The new partnership reflects BT’s ongoing efforts to cut costs and simplify its business. 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. But the new deal may put some jobs under threat.

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.

Cyril Pourrat, Chief Procurement and Supply Chain Officer at BT Group, said:

“Our partnership with GXO brings us to an important milestone in our transformation programme as we simplify BT. 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, MD 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 core 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.”

We should add that Pelipod, which is a secure UK storage box distribution and collection service that is wholly owned by BT Group, and BT’s final mile supply chain operations, are outside the scope of this new partnership agreement with GXO.