Birds Eye awards DHL £30m exclusive distribution contract
Three-year contract covers frozen foods across Europe to UK marketLondon, 03/22/2010, 11:30 AM CET
DHL will manage Birds Eye's entire supply chain from its European production facilities to its wholesale and retail customers.
DHL Supply Chain has been awarded a £30 million, three-year contract with Birds Eye to handle exclusive distribution of all Birds Eye frozen foods to UK customers. The deal will see DHL handle around 550,000 pallets annually and manage activity to ensure seasonal peaks in product harvesting are supported.
Under the new arrangement, DHL will transport all Birds Eye frozen foods by road and ferry from all European production points to Birds Eye's national distribution center in Birmingham, as well as onward distribution to retail and wholesale distribution centers.
DHL was awarded the business following a competitive tender process, on the basis of the value it can deliver and its understanding of Birds Eye's business needs, using a shared user network to allow new flexibility in its supply chain, including the use of additional fleet where necessary.
Designed for flexibility
DHL has also reviewed Birds Eye's existing supply chain and transport network, creating a new solution with reduced supply chain costs and fewer transport miles in support of Birds Eye's sustainability agenda, while maintaining a high level of customer service at all times.
Paul Dunne, Planning and Logistics Director at Birds Eye, says: "DHL has proved it understands our operational needs. Flexibility and responsiveness are essential requirements for our business and we have jointly designed a solution that is able to cope with demands across the year, while consistently meeting the service levels our customer require."
Mel Brockhouse, Business Director at DHL Supply Chain, says: "Through analysis of Birds Eye's supply chain operations, we were able to develop an in-depth understanding of its needs. To cope with fluctuating volumes and assist the company in meeting its corporate social responsibility targets we've implemented a highly effective shared user network. This has enabled Birds Eye to reduce costs and transport emissions, strengthening its sustainability credentials. With the recent resurgence of frozen goods, we are looking forward to working with Birds Eye to ensure supply continues to meet demand."