Work has started on a new £83m military logistics centre in Donnington, Shropshire.
The Defence Fulfilment Centre (DFC), which will cover the equivalent of ten football pitches, will store food, clothes and general and medical supplies. It is expected to take about a year to build.
Ground was broken by defence minister Philip Dunne, who said the project would "ensure value for money" for taxpayers. Savings of £500m are expected to be generated from the site in the next 13 years.
"The government is making a significant investment in this state-of-the art, modern logistics centre benefiting both our Armed Forces and the local economy," Dunne added.
"This forms part of our ten year, £160bn Equipment Plan, as well as our commitment to meeting NATO’s defence investment pledge."
Lieutenant General Sir Chris Deverell, chief of materiel at the Ministry of Defence (MoD), said: "The start of construction on the fulfilment centre highlights how we are transforming the way we support the changing military requirements of our armed forces and improving levels of quality and service.
"The modernisation of the way we store and distribute our military equipment will develop a supply chain that will be responsive to the needs of the military, whilst at the same time saving money for the MoD."
The DFC will be operated by Team Leidos, which comprises US group Leidos and subcontractors Kuehne+Nagel and TVS Supply Chain Solutions.