Telefónica launches major logistics review

Telefónica launches major logistics review
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O2 UK’s parent company Telefónica is on the hunt for a strategic partner to help it combine its logistics and distribution services across Europe and the UK, Mobile understands.

The move is seen as part of Telefónica’s ongoing strategy to cut costs and deliver economies of scale across its operations in the face of debts of more than £2bn.

The operator has issued a Request for Information (RFI) to potential bidders on a proposal to combine its logistics operations into a pan-European service.

Interested bidders include UK distributors and logistics firms, claim sources. One said: ‘The proposal covers different forms of logistics including warehousing, forward and reverse logistics, holding stock, putting it into stores and so on, across all European markets including the UK. It’s big.’

It is unclear how the pan-European contract will sit with O2 UK’s current arrangements. DHL landed a three-year deal to provide distribution and logistics services to O2 UK in July 2011.

Asked to confirm the RFI, an O2 UK spokeswoman told Mobile: ‘We continue to review logistics as we seek to take advantage of the scale of Telefónica.’

Author: Carol Millett

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