GXO Logistics’ new Warrington facility, developed for Iceland Foods, combines selective automation with digital tools, to improve efficiency on an industrial scale. Michelle Mooney reports.
GXO Logistics has launched a new flagship distribution centre in Warrington as part of its contract with Iceland Foods – and it’s already redefining how automated warehouses operate. The facility, which commenced operations at the end of last year, plays a central role in Iceland’s national distribution strategy and is currently trialling a suite of next-generation technologies that could soon be deployed across GXO’s wider network.
“We currently have a few facilities around the country, and this site is part of our plan to introduce several forward-thinking technologies,” explains Gavin Williams, managing director – UK and Ireland at GXO. “Within the Iceland contract, we are trialling three things at Warrington.”
The first is iFollow, a hardware solution involving cobots designed to move pallets around the warehouse. “We did that in Swindon and are planning to roll it out across the rest of the business, including here at Warrington,” Williams says. “This allows employees to focus on other, less repetitive tasks.” In addition to hardware automation, the facility is also leveraging artificial intelligence (AI) to enhance operational planning and warehouse management. “We have already implemented DataSpark, an AI software tool that plans transport systems better than the previous manual processes,” he explains.
BOT BYTE: More than a quarter (26%) of warehouses are expected to be automated by 2027. Source: Interact Analysis
“It creates 1,000 times more iterations of a transport plan, optimising the network for shorter transport times and greater efficiency.” Complementing this is WareBee, another AI-driven tool that focuses on internal warehouse optimisation. “Where a conventional warehouse management system tells you to pick a route in the warehouse, WareBee suggests a more efficient one,” Williams says.
“So both DataSpark and WareBee have more brain power than previous software and manual planners.” Together, these technologies form the digital backbone of a site built not just for today’s demands but for future scalability. Strategically located in Warrington, the new facility not only serves the local area but acts as a national supplier to other Iceland sites.
“The shift from our previous base at Hardwick Grange wasn’t just about space,” Williams explains. “By consolidating two warehouses into one larger, more efficient site, we’ve made it more fit for future growth.” According to Williams, the impact of this transition has already been felt. “Since opening the new site, staff turnover has dropped by more than 50%. People are excited by the facility. A better working environment makes people more committed,” he says. “Everything being connected in one place helps employee productivity. We’ve already seen a 20% increase in loading rates – that means even as volume grows, operations remain efficient because the processes are less complex.”
Looking ahead, GXO has plans to deepen its automation strategy even further. “We are fully intending on implementing autonomous mobile robots at this facility,” Williams reveals. “Once the site is fully stable, we’ll start introducing more advanced robotic technologies.” He stresses that the aim is
not to replace the workforce but to reallocate tasks more intelligently. “Even when this happens, we’ll have the same amount of people. As technology boosts efficiency, more stock will flow through the site — people will always be needed.
The tech just removes ‘dead’ activities like moving pallets.” Shrink wrapping is another process being evaluated for automation. “In the next six to 12 months, we’re planning to incorporate robotic shrink-wrap machines,” Williams says. “Right now, we’re using a manual system, but we’re evaluating two alternatives – a fully automated static machine, and a mobile cobot that moves where needed.”
However, trade-offs remain. “The smaller cobot is more flexible, but also slower. So it’s a balance between speed and versatility.”
From collaborative robotics and AI to an employee-centric operational strategy, GXO’s Warrington site demonstrates a clear and scalable vision for the future of distribution logistics – one where people and machines work smarter, together.
The £100m facility, located at Omega Park in Warrington, is Iceland’s largest warehouse to date, spanning 500,000ft². It serves as a central hub for distributing products to more than 350 Iceland stores nationwide, with the capacity to expand its reach to 500 locations in the future.
The warehouse includes ambient, chill, and frozen chambers, designed with future growth in mind, incorporating state-of-the-art technology to drive efficiency and ensure a resilient supply chain.
Tarsem Dhaliwal OBE, Iceland Foods CEO, expresses pride in the project: “We’re always looking at ways to make our business stronger, more efficient, and better for our customers. Investing in our supply chain is a huge part of that, and this new state-of-the-art warehouse is a game-changer.
“It gives us the capacity to grow, improve service, and future-proof our operations for years to come. Warrington means a lot to me, as the place where I grew up, and it gives me particular pleasure to have made such a major investment here.”
This article originally appeared in the May 2025 issue of Robotics & Automation Magazine. Read here!
