BT’s supply chain provides logistics support across all of BT Group’s operations, including supporting the Group’s fixed and mobile network build activities by transporting stock and replenishing supply stores, helping to keep more than 15 million residential and business customers connected.

The new partnership with GXO forms part of BT’s ongoing strategy to simplify and modernise its business, which continues to make strong progress. BT will be outsourcing its core warehouse and transport capabilities, while ensuring that the Group’s market-leading next generation network build plans remain on track. 

For BT supply chain colleagues in warehouse, transport and some support roles - around 300 colleagues in total - there will be a proposed transfer to GXO under a Transfer of Undertakings (Protection of Employment) or “TUPE” agreement. A further 300 third-party agency support roles will continue their work under the terms of the partnership. BT will retain critical expertise to ensure continuity of service. 

“Our partnership with GXO brings us to an important milestone in our transformation programme as we simplify BT,” said, Cyril Pourrat, Chief Procurement and Supply Chain Officer at BT Group. “By working with a market leading logistics company, we’ll create opportunities to improve our service and support BT’s ambitious fixed and mobile network build plans as we transform the business into an organisation that delivers exceptional service, sustainable operations and value for our customers and our colleagues.” 

Gavin Williams, Managing Director of GXO UK and Ireland said: “We’re proud to announce an expansion of our long-term relationship with BT that makes us their preferred partner for all core supply chain activities. GXO will be supporting BT’s supply chain as it delivers its ambitious consumer and engineering activities. We’re going to deploy our technological expertise for a new end-to-end systems infrastructure that supports BT’s growth in fibre technology across the U.K.” 

In 2021, as part of its wider modernisation programme, BT Group announced improvements to its supply chain and procurement operations, including establishing BT Sourced as a new, standalone procurement company within the Group alongside its supply chain business. BT is making good progress on its business transformation programmes to create a stronger, better BT for our customers, the country and colleagues by modernising and bringing down costs. In November 2021 the company announced that it had achieved its £1bn cost savings target 18 months early and brought forward its FY25 target for £2bn of savings to FY24. 

Notes to Editors:

• Pelipod, the UK’s secure, storage box distribution and collection service, which is wholly owned by BT Group, and BT’s final mile supply chain operations, are outside the scope of this new partnership agreement with GXO.

BT Sourced is a new, standalone procurement company within the BT Group, established to challenge the traditional ways of buying goods and services by simplifying processes and introducing new technology and partnership-based approaches to the way BT works with suppliers and start-ups.

Based in Dublin, which has established itself as a hub for many ‘Big Tech’ businesses as well as technology start-ups, the company will manage and influence a budget of around €14.8bn (£13bn), and draw on the capital’s diverse and tech-savvy talent pool as it builds its presence in the Republic of Ireland.

BT, which already has a significant presence in Ireland[i], is one of the leading communications service providers globally, and serves customers in 180 countries world-wide. BT Sourced aims to make the company easy to do business with for its global supplier base, drawing on technical innovations including AI-powered digital technology, combined with new, partnership-led approaches to simplify and speed up BT’s global sourcing.

The company will also lead BT’s drive towards sustainable sourcing, using its buying power to influence the company’s supply chain and boost supplier diversity. BT’s ambition is to reduce carbon emissions in its supply chain by 42% by 2030/31[ii].

The roles will be based at BT Sourced’s Grand Canal Plaza HQ, and range across a number of procurement management disciplines including IT, Networks, Connectivity and Services plus procurement analytics and transformation. The company is hiring now, and interested applicants can search available roles at https://www.bt.com/careers/careers-at-bt/procurement.

Cyril Pourrat, Chief Procurement Officer for BT Group, said: “Dublin is a vibrant city with a truly global outlook, and we’re excited to be building our innovative new procurement company at its very heart, taking advantage of the fantastic talent pool Ireland has to offer in the global sourcing arena. We’re looking for diverse, entrepreneurial and talented professionals to join our organisation and help build something from the start.

“BT Sourced will play a major role in BT’s transformation, drawing on the best technology and people to speed up and simplify the way we manage BT’s third party spend worldwide.”

Tánaiste & Minister for Enterprise, Trade and Employment Leo Varadkar TD said: “This announcement by BT Sourced will see the creation of 70 new roles in Dublin. BT, which is a world leader in the telecommunications sector, will join the growing number of innovative, multinational companies who have made Dublin their home. The company can look forward to accessing a rich pool of talent which will allow it to embed and grow its operations here. I wish BT every success with this expansion.”

Martin Shanahan, CEO of IDA Ireland said: “BT’s decision to establish its new procurement company BT Sourced in Dublin is a strong endorsement of the deep pool of tech talent in Ireland. This new company will play a strategically important global function for the BT Group. Ireland offers a safe and stable investment location with access to the EU market, an educated and skilled workforce and an attractive environment where people want to live and work. This investment by BT Sourced is very welcome and IDA Ireland offers its ongoing partnership to the team as it builds this key function from Dublin.”

[i] BT Ireland is one of the leading communications companies in Ireland, employing more than 650 people.

[ii] Target relates to scope 3 emissions, versus 2016/17 levels.

See page 40 of the DI&S business briefing.