DHL wins £9 million contract with UK's leading single-price retailer
DHL Exel Supply Chain develops new operating model across Poundland supply chainLondon, 03/18/2008, 10:30 AM CET
DHL Exel Supply Chain today announced that it has won a new three year contract worth £9 million (11.8 million euro), with Poundland, the UK's largest retailer of £1 products. DHL will be importing consumer products from China and transporting them to stores across the UK, utilizing the expertise from its extensive global network.
DHL will transport a variety of products for Poundland from UK outbases in Billingham, Hatfield and Belshill and will provide deconsolidation center services at ports in Felixstowe and Southampton. The inward freight from China will be managed by DHL's specialist International Supply Chain team, which provides end-to-end supply chain management expertise.
Jim McCarthy, Chief Executive, Poundland, said: "We are pleased to be working with DHL both in the UK and China. This new business model should really help to reduce our transport costs - a key priority for us as a low-price retailer. Using DHL's integrated international service we hope to increase the efficiency of delivering high-volumes of consumer products to all of our UK stores."
John Boulter, Managing Director, Home and Specialist Retail, DHL Exel Supply Chain, added: "This is a significant win for us and underlines our expertise providing integrated international logistics solutions within the retail sector. We have worked closely with the Poundland board to develop a new operating model for its supply chain and look forward to implementing this value-added solution for Poundland over the next three years."
DHL's solution will significantly reduce transport costs by the introduction of double-deck trailers and by revising store delivery schedules. DHL's ability to provide transport outbases and deconsolidation centers in key areas played an important part in securing this contract.
Poundland has 167 stores throughout the UK, each receiving up to five deliveries a week. DHL's deconsolidation centers will be handling between 3,000 and 4,000 containers each year, transporting a range of products for Poundland covering: food and drink; health, baby and beauty; household; homewares; toys; DIY and petcare products.