Retail News South Africa

Clover Logistics signs R400 million deal with Unilever

Clover Logistics, the biggest refrigerated distribution operation in South Africa, has concluded a R400 million deal over a five-year-period with existing client, Unilever South Africa Foods (Pty) Ltd. The contract expands on the existing contract between Clover Logistics and Unilever, which dates back to a 1973 warehousing and wheels service.

In its new format, the deal has evolved into a closer and more extensive partnership with Unilever and an increase in Clover Logistics' service offerings to them. This entails Clover Logistics managing the movement of Unilever's spreads and margarine stock from the Boksburg central hub, and onwards directly to depots and customers. Clover Logistics will also manage the central hub and all primary distribution, while also providing a secondary distribution service.

Primary distribution will take place into Botswana and Namibia and secondary distribution into the whole of South Africa. Comments Clover Logistics COO, Daniel Barbosa, "This contract further strengthens the long-standing, strategic partnership between Unilever and ourselves. By managing Unilever's entire physical refrigerated supply chain, we will be able to play an important role in growing Unilever's business even more in the spreads and margarine market, where it is already the undisputed market leader."

Says Unilever South Africa Foods' Outbound Supply Chain Manager, Angie Carratu, "We look forward to a continued relationship into the future as strategic partners, thereby cementing our strategy of a customer-led supply chain providing customer service excellence."

Clover Logistics is committed to maintaining and driving the agreed internationally benchmarked service levels, which are to be reviewed on a regular basis to ensure the best service to customers.

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