DHL awarded £20m five-year contract from REHAU
DHL Supply Chain to handle warehousing and distribution through new fleet management and warehouse utilizationLondon, 10/02/2009, 11:30 AM CEST
DHL Supply Chain has been awarded a contract worth £20 million (approx. 21 million euro) across five years to provide warehouse and distribution services for global polymer processing supplier REHAU. The new deal follows a 20-year relationship between the two companies which has delivered outstanding service levels and significant cost savings.
The contract covers primary distribution of 40,000 tons of UVPC, steel and aluminum per annum from REHAU's production facility in Blaenau Ffestiniog, north-west Wales, to the national distribution centre in Widnes, Cheshire. DHL will also operate REHAU's 190,000 square foot national distribution center and handle national secondary distribution to customers, extending to 2,300 field locations.
The relationship extension follows a competitive tender process, with DHL securing the deal due to its commitment to continuing to deliver exceptional service levels while ensuring cost savings across the supply chain.
As well as reducing fixed costs, DHL plans to find further savings through transport initiatives, including the introduction of back-loading to make use of spare capacity on return legs of delivery journeys through DHL's Electronic Freight Exchange system. DHL will also be increasing utilization of the national distribution centre by introducing third party storage and utilizing REHAU's fleet to incorporate other areas of the business.
The next stage
Graeme Bainbridge, Operations Director for REHAU, says: "DHL has already delivered an exceptional service, including stock accuracy of 99.99% in 2008 and delivery accuracy of 99.94%, which led to the center in Widnes becoming our most efficient business sector warehouse globally. We expect this to continue over the next stage of our relationship, allowing cost savings to be delivered and excellent supply chain operations to be maintained."
Philip Roe, Managing Director, Manufacturing for DHL Supply Chain UK, says: "We are focused on continuing to deliver high levels of accuracy and service for REHAU, as well as using our business insight to help the company grow in profitability. By introducing new initiatives within the company's fleet and improving the utilization of the national distribution center we are confident that we can introduce new efficiencies and cost savings."