As a global leader in dairy products, Danone is committed to guaranteeing that everything it delivers to its customers is ultra-fresh. With retailers demanding shorter sell-by dates and more frequent deliveries, Danone needed a highly-flexible logistics provider with cold chain expertise to support its quality image. The solution is joint ventures between Danone and XPO Logistics in Spain, Romania and Russia, custom-developed to ensure service excellence and strong business performance.
Through a relationship spanning more than 20 years, XPO has acquired in-depth knowledge of Danone’s requirements for freshness. We can operate complex solutions in full compliance with Danone’s strategy for product management, including delivery of products with a very short shelf life and limited stock held in-store. This necessitates frequent deliveries that potentially could be very costly. We leverage our extensive transport network to sell residual capacity to other fresh goods producers — filling trucks, driving down costs and generating a new revenue stream.
By structuring its collaboration with XPO as joint ventures in targeted markets, Danone benefits from our best-in-class supply chain processes and essential expertise, while keeping control of strategic decisions. We have the global scale and resources to make investments in technology that continuously improve the performance of each venture. This model has been operating successfully for Danone in Spain since 1998, in Romania since 2011 and in Russia since 2013; the company is now considering replicating the model in other markets.