National British supermarket chain ASDA Stores Limited has renewed its long term agreement with XPO Logistics (NYSE: XPO) for reverse logistics operations.

Under the new deal, XPO will continue to manage nine ASDA service centres for the Leeds based retailer.

XPO washes millions of units of returnable transit equipment every year for ASDA and repairs them when needed.

XPO has worked with ASDA to introduce a wide range of innovations in the service centres, such as a “zero waste to landfill” (ZWTL) solution that helps ASDA meet its recycling goals for more than 600 stores in the UK.

Many of the solutions have been custom developed through this partnership, which has reduced costs along the supply chain by bringing more logistics functions in house. Proprietary XPO technology developed with ASDA tracks the assets and manages hundreds of supplier accounts.

Business unit director–consumer and reverse logistics for XPO Logistics, Gavin Williams, commented: “We’re proud of our longstanding relationship with ASDA and the numerous sustainability initiatives we have put in place at the service centres – for example, rainwater harvesting and intelligent lighting. ASDA has recognized our commitment to continuous improvement by honoring our team with the ASDA Supply Chain Collaboration award for the past two years.”

Further innovations developed through this collaboration include an improved design for crate wash machines that cuts downtime and increases wash speed by 20%; an automated baler design that improves efficiency and cuts power consumption by 30%; and the automation of food waste processing to increase productivity and further support ASDA’s ZTWL policy.

Logistics vice president for ASDA, Jon Parry, added: “The renewal of our contract with XPO Logistics reflects our determination to be environmentally sustainable across our entire business. The strong working relationship between ASDA and XPO has enabled us to deploy significant waste innovations and achieve cost efficiencies. We are delighted to extend this award-winning collaboration.”