BT is outsourcing its supply chain to GXO Logistics as part of the telco’s ongoing transformation programme.
The new long-term relationship will see GXO provide logistical support across all of BT’s operations, including supporting its fixed and mobile networks by transporting stock and replenishing supply stores to keep customers connected.
Specifically, BT will outsource its core warehouse and transport capabilities, with 300 staff transferring to GXO and another 300 agency roles continuing to support the operation in order to maintain continuity of service.
BT transformation
“Our partnership with GXO brings us to an important milestone in our transformation programme as we simplify BT,” said, Cyril Pourrat, Chief Procurement and Supply Chain Officer at BT Group.
“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.”
BT is currently investing heavily in full fibre and 5G networks, while its planned modernisation programme will see it vacate its London St Paul headquarters in favour of a new head office and base its operations at around 30 sites across the UK.
The programme will also involve the loss of 13,000 jobs, mainly in back office and middle management roles, with new positions created in engineering and customer service. The company has made other moves to make its supply chain and procurement operations more efficient, selling its fleet management unit in 2019 and establishing a standalone procurement company called BT Sourced.
BT says the efforts have delivered results ahead of schedule, achieving £1 billion worth of savings 18 months earlier than originally planned. Meanwhile it has brought forward its £2 billion target from 2025 to 2024.
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