DHL Supply Chain has been awarded a contract extension worth £75m to manage the UK warehousing and distribution of goods for BP’s UK convenience retail business until 2018.
The contract builds on DHL’s eight-year track record for implementing efficiency improvements for BP UK Convenience Retail, aiming to achieve even greater levels of cost and carbon savings for both organisations.
As part of the contract, DHL provides warehousing, storage and transportation services to BP’s 350 company-owned forecourts across the UK, handling 19 million cases per year of 1,400 product lines, including ambient, bread, sandwiches and high-value lines. DHL also operates a customer service function, providing frontline support on order and delivery queries for BP’s company owned stores, in addition to purchasing and inventory planning.
In 2008, DHL and BP’s Target Neutral team embarked on a carbon neutral initiative to improve its commitment to the environment. DHL has since worked alongside BP to trial a number of initiatives that have reduced carbon emissions including waste recycling, backhauling and vehicle sharing.
One such initiative, where DHL has enhanced its transportation of BP goods to Scottish forecourts, has provided BP with significant cost savings while reducing stem mileage by 12% year on year, reducing carbon by 14%.
Dean Wyatt, vice president of business development retail for DHL Supply Chain UK, said: “Working with BP over the years has required us to adapt our solutions to suit their expanding operations. As BP’s long-standing logistics partner, we are delighted to announce this partnership renewal and are committed to continually improving our service offering to deliver consistently high levels of service.”