Saturday 1st Oct 2016 - Logistics Manager

BP signs £75m DHL deal

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BP has signed a £75 million contract renewal with DHL Supply Chain to manage the UK warehousing and distribution of dry goods and chilled produce for its convenience retail business.

DHL will manage the storage and delivery of 20 million cases of product 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 more than four years, and has implemented initiatives such as Good Faith Receiving (GFR), which removes the need for staff to check-in items at delivery stage, which has improved product turnaround.

DHL has also reduced BP’s food miles by 1.1 million miles per year and increased fleet efficiency by introducing double-deck trailers with trunking, for maximum vehicle capacity.

DHL plans to fit all vehicles with aerodynamic body kits, which can improve fuel efficiency by up to 10%.  In addition, optimized 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.

Rebecca Harrison, supply chain manager, BP Trading, said the DHL team has to date have improved productivity levels by 20 per cent.

Dean Wyatt, business unit director and head of development, food retail for DHL Supply Chain, UK said: “BP Retail has been through significant periods of change since we began working with the team. Initiatives such as improvements to the warehouse lighting realised savings of 28 per cent and reduced BP’s carbon footprint by 250 tonnes.”