Costa lands chilled supply chain contract

Costa Logistics secures deal with multinational company Simplot in a move the company says will help grow the business

February 10, 2010

Victorian-based operator Costa Logistics is continuing its expansion plans, landing a significant supply chain contract with a multinational food and agri-business company.

Under the deal with Simplot, Costa will be responsible for moving products to its distribution centres and then coordinating outbound transport to a number of Victorian and interstate delivery points.

The operator is expecting to service about 20 customer locations, with the deal coming after Costa spent $4 million last year upgrading its IT system to improve productivity and client service.

"Working for blue-chip companies such as Simplot is part of Costa Logistics’ growth strategy," the company’s general manager of business development, Ross Walter, says.

Simplot’s logistics and planning manager, Danny Mellon, says the company turned to Costa to improve distribution efficiency.

"Costa Logistics was chosen due to the company’s skills in handling quick turnaround products and expertise in handling high volume perishable," he says.

Mellon says Costa’s supply chain operations means Simplot can ship production in bulk to a single point where combined orders will be picked and shipped to customers.

As well a boosting Simplot’s delivery efficiency, Walter says Costa is looking forward to working with the company as it pushes more into the chilled food sector.

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