DHL extends contract with BP’s retail network

By on Mar 12, 2010

DHL Supply Chain has been awarded a four-year contract worth £75 million to manage the UK warehousing and distribution of dry goods and chilled produce for BP's UK Convenience Retail business

The new contract will see the two companies improve on productivity targets as well as cost and carbon savings

As part of the contract, DHL will manage the storage and delivery of twenty million cases of dry and chilled goods to all 360 BP forecourts around the UK each year

The team will also take on inventory forecasting and the management of BP Retail's service call centre, which supports round-the-clock inbound replenishment orders and outbound activities such as goods collection and pre-emptive ordering

DHL has worked with BP in the UK for more than four years, during which time the team has consistently delivered against its service level agreements

To build on existing carbon savings, DHL plans to fit all vehicles with aerodynamic body kits, which can improve fuel efficiency by up to 10% In addition, optimised delivery schedules will reduce the number of vehicles on the road, thereby cutting costs and reducing BP's carbon footprint

Further strategic supply chain enhancements include plans to share empty warehouse space with a non-competitive third party and backhauling