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GXO extends its contract with Mars

GXO Renews Agreement with Mars

GXO extends its contract with Mars - Supply Chain Tribe by Celerity

The largest pure-play contract logistics provider in the world, GXO Logistics, Inc. (NYSE: GXO), said today that it has extended its 15-year agreement with Mars, a significant French consumer packaged goods manufacturer. GXO oversees the value-added services, storage, returns, and distribution of several Mars brands in the Snacking and Food & Nutrition divisions.

"We are thrilled to grow our collaboration with Mars in France," stated Rui Marques, GXO's Managing Director for France. "We have been helping Mars restructure its supply chain for many years by utilizing our industry-leading automation knowledge. We are eager to expand the deployment of automated solutions to further increase productivity and improve the experience of our team members.

Since 2018, GXO's 60,000 square meter warehouse located in Boigny-sur-Bionne has made use of sophisticated automation solutions. One such solution is a layer picking robot, which has the capacity to prepare 60,000 packages a day. In order to optimize and increase package preparation capacity, the team recently developed a solution as part of the contract extension that allows new product categories to be linked into those controlled by the robot. The facility also makes use of adaptive technology, which includes devices like ergonomic scanners and e-beacon technology, which scans pallets that are loaded for shipping automatically. As part of its ongoing commitment to innovation, GXO intends to introduce other technologies, such as an automated inventory system, on-site.

According to Henri Harfouche, head of supply chain for Mars' French market, the company's Saint-Denis-de-l'Hôtel facility has long produced pouches and cans for its well-known petfood brands. We committed €85 million in 2023 to meet the rising demand and enhance environmental performance, all the while reaffirming the group's commitment to the Loiret and French territory in general. We're eager to collaborate with GXO going forward and to benefit from their storage solutions and industry-leading capabilities. With GXO's assistance, we've been able to streamline our processes, boost throughput, and better meet the demands of our clients.

Petcare (PEDIGREE®, WHISKAS®, CESAR®, SHEBA®, ROYAL CANIN®), Snacking (M&M’s®, TWIX®, SNICKERS®, Celebrations®, FREEDENT®, SKITTLES®), and Food & Nutrition sectors (BEN’S Original®, EBLY®, SUZI WAN®) are among the Mars brands served at the location.

Apart from their elevated operational benchmarks, Mars and GXO have a mutual aim for enduring expansion, guaranteeing that optimal methodologies are incorporated throughout their undertakings. In 2024, Mars and GXO installed LED lighting on the property.

utilizing motion sensing and twilight, cutting energy use by around 22% over the prior year. 2023 saw the implementation of new initiatives aimed at improving order preparation and loading efficiency. These efforts helped optimize truck capacity and eliminated 1,500 truck moves from the road, resulting in a considerable reduction in transportation costs and an approximate 1,400 ton yearly decrease in CO2 emissions when compared to 2022. In order to sustainably maintain the site's green zones, the institution also keeps more than 20 sheep.

Because of the site's location, rail access from German production facilities is now possible. Under this new agreement, the number of long-distance transport miles traveled by an estimated 3,600 trucks annually will be reduced by the utilization of three trains per week, which is similar to the volume handled by about 70 vehicles.

Customers throughout the world are benefiting from increased production, safety, and efficiency because to GXO's industry-leading automation and technology. Compared to 2022, GXO's total tech and automated systems expanded by around 50% in 2023. In an effort to increase efficiency even more, GXO is also speeding the application of artificial intelligence and machine learning.