GXO wins a new contract in Belgium to strengthen warehousing services in a semi-automated facility

GXO and Kellogg, who have been in partnership since 2008, will continue to implement continuous improvement initiatives across operations spanning five countries and eight locations.

GXO's technologies have improved speed, efficiency, and brought environmental benefits to Kellogg.

GXO Logistics, Inc. (NYSE: GXO), the world's largest provider of contract logistics services, announced today that it has signed an agreement to extend and expand its partnership with Kellogg, the world's largest cereal producer and one of the leading snack manufacturers. The renewed agreement includes solutions in the United Kingdom, Spain, Germany, and Poland, as well as a new facility in Belgium.

"We are delighted to grow and expand our partnership with Kellogg and look forward to continuing to add value to Kellogg's logistics operations," said Richard Cawston, President, Europe, GXO. "We will continue to make strategic investments in automation and apply our industry-leading expertise and experience to help Kellogg optimize their production support, warehousing, delivery execution, and co-packing activities."

The companies collaborate to implement top industry technologies and practices across seven locations in Europe, through the implementation of continuous improvement initiatives to increase productivity and speed while reducing costs. These initiatives include technology investments, process improvements, and knowledge sharing.

Bruno Esmeraldo, European Logistics Director, Kellogg, said, "Collaborating with a data-driven company like GXO helps us improve visibility of operational performance and services, enabling greater proactivity in decision-making. Our shared commitment to operational excellence, coupled with the right technological solutions that support our ESG objectives, provides a strong foundation for a future-ready business."

GXO and Kellogg have enjoyed a longstanding partnership in several European countries.

In Belgium, GXO will operate and optimize Kellogg's operations in a new semi-automated facility of 60,300 square meters in Mechelen, starting in June 2023. GXO's solutions in this facility will include warehousing and a transfer system between the Kellogg factory and the warehouse, along with an option for value-added co-packing services.

In the United Kingdom, where the companies began collaborating in 2008, GXO manages three warehouses for Kellogg and has approximately 350 employees.

In Spain, GXO and Kellogg started working together in 2018, and currently GXO manages approximately 50,000 square meters of dedicated space in two warehouses, with over 100 team members working for Kellogg, enabling supply to the Iberian Peninsula, southern France, and the United States.

In Germany, GXO and Kellogg recently expanded their longstanding partnership to the facility in Bremen, Germany, which has 71 team members and serves the entire German market.

In Kutno, Poland, a 27,000 square meter warehouse has approximately 120 employees and provides warehousing, picking, packing, and value-added co-packing services. GXO has recently implemented innovative technologies and automation at the Kutno facility, including a pallet conveyor racking system, improving storage density and efficiency. Through this automation, GXO has shortened the palletization process by 90% (from 24 to 1.5 minutes), reduced plastic consumption by 85% (from 15 to 1 layer), and improved team member ergonomics and safety.

As part of the new agreement, GXO has implemented the Reflex web WMS in locations in Spain and the United Kingdom, and will implement the same in Belgium. Additionally, GXO is collaborating with Kellogg to develop digital reporting parameters to further enhance visibility of operational performance and services and enable greater data-driven decision-making.

About GXO Logistics

GXO Logistics, Inc. (NYSE: GXO) is the world's largest provider of dedicated contract logistics services and benefits from the rapid growth of e-commerce, automation, and outsourcing.

GXO is committed to providing a diverse, world-class workplace for over 130,000 team members across more than 970 facilities totaling approximately 20 million square meters.

The company collaborates with the world's top leading companies to solve complex logistics challenges with technologically advanced solutions for supply chain and e-commerce on a large scale and with speed. GXO's corporate headquarters is located in Greenwich, Connecticut, USA. Visit GXO.com for more information and connect on LinkedIn, Twitter, Facebook, Instagram, and YouTube.

About Kellogg Company

At Kellogg Company (NYSE: K), our vision is a good and just world where people are not just fed but fulfilled.

We create better days and a place at the table for everyone through our trusted food brands. Our beloved brands include Pringles®, Cheez-It®, Special K®, Kellogg's Frosted Flakes®, Pop-Tarts®, Kellogg's Corn Flakes®, Rice Krispies®, Eggo®, Mini-Wheats®, Kashi®, RXBAR®, and MorningStar Farms®. Net sales in 2022 were over $15 billion, primarily comprising snacks as well as convenience foods such as cereals, frozen foods, and noodles.