TDG has secured the fuel distribution contract for supermarket chain Tesco in the South West and South East of England, following a nine-month selection process. TDG now manages the whole of Tesco’s UK fuel distribution, worth around £24 million per annum.
TDG’s relationship with Tesco began in 1992, when the supermarket chain first started to collect and distribute its own fuel. Since then, TDG’s service performance and attitude towards continuous improvement has supported Tesco’s penetration into the fuel sector and led to the company winning a growing share of Tesco’s business.
TDG distributes to Tesco petrol stations and to its distribution centres, to provide fuel for Tesco vehicles. Prior to this contract win, TDG operated Tesco’s fuel deliveries to the north of Birmingham and half of the South East (60% of the business); the remaining 40% was operated by Wincanton. TDG now operates 100% of Tesco business.
Tesco has 14% of the UK fuel market. It is predicted to sell 5.7 billion litres of fuel this year. TDG now employs nearly 300 drivers on the Tesco contract, and operates more than 100 petrol tankers, all Tesco liveried, based at twenty vehicle operating centres.
TDG chief executive David Garman commented: “Tesco’s decision to move to TDG as its single 3PL provider confirms our approach of working closely with our customers to deliver growth and enhance their competitiveness.”
According to Tesco’s Alex Laffey, TDG worked closely with Tesco to develop one of the most innovative and efficient fuel distribution networks in the UK. “By standardising our operational procedures we are confident we can ensure our customers have more choice at the pumps at competitive prices.”
