Bibby fight for £200m deal

Oct 8 2008 by Barry Turnbull, Liverpool Daily Post

BIBBY Line Group is fighting to retain a lucrative £200m distribution contract with convenience stores chain Nisa.

The company has worked with Nisa for more than 10 years, but the chain of independent retailers has now launched a tender process for its delivery rights.

Both Bibby and DHL have five year deals with the business that expire in 2011. Nisa says its next seven year contract will have the aim of reducing road miles, cutting costs and improving service for its 800 members.

A short-list of three suppliers has been drawn up for the lucrative deal.

A company spokeswoman said: “Our two contracts end in 2011 and in the light of this it has been identified the future supply chain should be aligned to the evolving requirements of our members.

“We have had several international distribution companies pitching for business including Bibby. We believe there is a way to reduce mileage and overheads and create a more efficient solution.”

Nisa acts as a cental buying and distribution arm for more than 800 convenience stores around the country.

Liverpool-based Bibby services supply deliveries from Nisa ‘s 625,000 sq ft warehouse in Lincolnshire.

Alan Paterson, operations director, commented: “Bibby Distribution has built a strong and solid relationship. We are hopeful of retaining the business going forward."

Meanwhile Bibby’s decision to take a 51% stake in stores chain Costcutter looks to be paying off with news the £500m turnover business has seen sales rise by 6.2% this year. Bibby bought in for £100m in September 2007, a year after merger talks between Costcutter and Nisa collapsed.

Angela Barber, trading and marketing director of Costcutter Supermarkets Group, said: “I believe the reason sales are increasing above and beyond our target comes down to a number of marketing and current consumer trends.”

barry.turnbull

Bibby Line Group launches new ship management company

BIBBY Line Group has also launched a new ship management business after splitting with Meridian Marine.

The 50:50 joint venture has been dissolved with Bibby setting up its Ships Management Group with some employees from Meridian.

The new company will bring together the Bibby International Services business with many of the experienced former Meridian staff.

Bibby Ship Management Group will wholly operate a flexible, tailor-made ship management service comprising all aspects of specialist crew and technical management, including training, payroll, insurance, vessel inspection and accident investigation to third party clients.

The company will be headquartered in the city of Liverpool.