DHL Supply Chain extends contract with BP’s retail network

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DHL Supply Chain has been awarded a four year contract worth £75.0 million (approximately €86.0 million) to manage the UK warehousing and distribution of dry goods and chilled produce for BP’s UK Convenience Retail business

DHL Supply Chain has been awarded a four year contract worth £75.0 million (approximately €86.0 million) to manage the UK warehousing and distribution of dry goods and chilled produce for BP’s UK Convenience Retail business. As part of the contract, DHL will manage the storage and delivery of 20 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 been working with BP in the UK for over four years. Initiatives such as Good Faith Receiving (GFR), which negates the need for staff to check-in the items at delivery stage, have improved product turnaround, getting items into customers’ hands faster. DHL has also reduced BP’s food miles by 1.7 million kilometres per year and increased fleet efficiency by introducing double-deck trailers with trunking, for maximum vehicle capacity.

Improvements to the warehouse lighting realised savings of 28.0% and reduced BP’s carbon footprint by 250 tonnes. This gives DHL the opportunity to support BP’s environmental agenda and the DHL’s commitment of improving its CO2 efficiency by 10.0% by 2012.

To build on existing carbon savings, DHL plans to fit all vehicles with aerodynamic body kits, which can improve fuel efficiency by up to 10.0%. 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.

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News Source : DHL Supply Chain extends contract with BP’s retail network