08 February 2010

DHL Supply Chain develops innovative logistics solution for the office products wholesaler

DHL Supply Chain has won a new contract worth £38.0 million (approximately €42.7 million) across five years to handle the UK distribution for European office products wholesaler, Spicers. DHL will manage distribution across Spicers’ supply chain network from regional distribution centres located in Greenwich, Chessington, Bristol, Birmingham, Heywood and Glasgow to dealers and customers.

Following a competitive tender process, DHL was awarded the new customer contract based on its recommendations for increasing value across the Company’s existing transport network, as well as offering the best cultural fit with the Spicers business. The office products wholesaler also recognised DHL’s ability to provide a flexible logistics solution, which can be adapted to changes in the business environment.

DHL will mange a dedicated fleet of 98 vehicles. Focused on enhancing efficiency, and thereby reducing costs across the supply chain, DHL will continue to drive improvements through the ongoing implementation and effective evaluation of the information provided by the following systems within Spicers’ transport network:

> Deployment of vehicle telematic systems to enable DHL to monitor fuel usage and better understand how the vehicle is being driven. Information generated by this system will help DHL to train and manage drivers to minimise fuel consumption.

> Implementation of tracking systems to allow DHL to oversee route planning, understand the need for variances, and enable future planning across the network. As well as providing increased transport efficiency, this system will improve the security of vehicles by enabling any stolen lorry to be traced.

In addition, fuel efficiency improvement will be delivered through the deployment of new vehicles fitted with the “tear-drop” body design. The rigid design is expected to improve fuel consumption by approximately 8.0%.

All 180 employees from the previous contractor have been retained by DHL, which is committed to maintaining service levels through the transition, while identifying areas for development. This includes coordinating a series of improvement workshops to encourage collaboration within teams and to build on the existing expertise within Spicers’ supply chain.