Tuesday 27th Sep 2016 - Logistics Manager

Morrisons renews UK fuel deal with DHL

Morrisons has renewed its national fuel distribution contract with DHL Supply Chain for an additional six years, during which DHL will manage the scheduling and delivery of fuel to the supermarket giant’s UK network.

Morrisons’ network consists of 335 forecourts and regional distribution centres across the country.

DHL will now continue to manage the grocer’s fuel operation from its Whitwood fuel planning centre, in West Yorkshire.

The company measures Morrisons’ fuel stock there every 90 seconds, through its own IT system, to provide real time product availability and the ability to respond rapidly to changing demand.

All product inventory is managed by DHL’s planning team on a 24/7 basis, after which the fuel is replenished by a team of 206 professional drivers.

“To ensure certainty of supply at the lowest possible cost, we sought a supply chain partner capable of delivering a robust, resilient but 2/2 flexible operation,” said Mark Todd, petrol director at Morrisons.

“The new technology and central planning function that DHL has developed enables us to meet changing fuel purchasing patterns in real time; a critical ability in what is a highly competitive market.”

The new contract extension has seen DHL invest in a fleet renewal, having upgraded its entire fleet with 56 new Scania tractor units.

It extends the two companies’ partnership to 12 years.