DHL signs five-year £150 million-pound contract with MFI, the UK’s leading home and furniture retailer12/12/2007, 12:00 PM CET
- Opening of major £50m national distribution center cements deal
- New distribution center creates 330 new jobs
Bonn: DHL Exel Supply Chain has today announced a new five-year deal with MFI, the UK's leading home and furniture retailer, after successfully winning the contract to manage the high street giant's new distribution center and home delivery operation.
Under the terms of the five-year contract, DHL will invest more than £10 million (13.8 million euro) of its own capital into the venture. This investment will help to improve the information technology system which supports the new, streamlined picking and packing process in the warehouse, and also to develop additional warehouse space as MFI's product range increases.
On Friday 7 December, DHL and MFI opened a new, major distribution center in Yorkshire, which signifies the start of this new business relationship. Cabinet Office Minister, Ed Miliband, carried out the official opening at the state of the art 750,000 sq m distribution center in Thorne (South Yorkshire), thereby cementing a major breakthrough for DHL, as the deal represents one of the biggest 'shared risk' partnerships it has ever entered into with a customer.
"We are delighted to have been chosen by MFI as its preferred supply chain partner," commented DHL Exel Supply Chain Business Director, Matthew Phelps: "This has been one of the most challenging projects that DHL has ever been involved in. Our extensive experience in the retail market has allowed us to respond directly to MFI's needs, and develop a responsive and flexible solution for their home delivery and warehousing operation. We have already completed a £13.2 million fit-out of the 750,000 sq m distribution center and between now and February 2008, we will create 330 new specialist warehouse and administration positions."
"We are ideally placed to support MFI in delivering great customer service, by ensuring customers receive their products direct to their door, within a guaranteed period of time," added Matthew Phelps, "DHL is a world leader in the provision of logistics and business solutions - and has specifically adapted its solution to MFI's needs, one of the reasons MFI has elected to work with us. We have more than met their expectations so far, and I am confident we will continue to do so in the months ahead as we set about helping MFI meet their key corporate challenges of 2008 and beyond."
As Chris Pavlosky, Chief Operating Officer of MFI, explains, the company recently relaunched itself after its 200-strong retail store business was acquired by specialist venture capitalist, Merchant Equity Partners. "We are naturally very pleased to be working with DHL during a very demanding and exciting period in our history. With DHL's support, we plan to reassert the company's position in its traditional retail markets.
"The Thorne distribution center is integral to ensuring that our customer is the focus of our supply chain as we recognize that delivering outstanding customer service is the key to success. We will be utilizing the proven expertise of DHL to achieve this goal."