Global polymer processing supplier REHAU has signed a £20 million warehouse and distribution contract across five years with DHL Supply Chain.
DHL will be in charge of the primary distribution of 40,000 tonnes of UVPC, steel and aluminium per year from REHAU’s production facility in Blaenau Ffestiniog in north west Wales, to the national distribution centre in Widnes, Cheshire.
DHL will also operate its 190,000 sq ft national distribution centre and handle national secondary distribution to customers, extending to 2,300 field locations.
The company plans to reduce fixed costs and find further savings through transport initiatives, including the introduction of back-hauling through its Electronic Freight Exchange system.
It will also be increasing use of the national distribution centre by introducing third party storage and using REHAU’s fleet to incorporate other areas for the business.
Graeme Bainbridge, operations director for REHAU, said: “DHL has already delivered an exceptional service, including stock accuracy of 99.99 per cent in 2008 and delivery accuracy of 99.94 per cent, which led to the centre in Widnes becoming our most efficient business sector warehouse globally.
“We expect this to continue over the next stage of our relationship, allowing cost savings to be delivered and excellent supply chain operations to be maintained.”
Philip Roe, managing director, manufacturing for DHL Supply Chain UK, added: “We are focused on continuing to deliver high levels of accuracy and service for REHAU, as well as using our business insight to help the company grow in profitability.
“By introducing new initiatives within the company’s fleet and improving the utilisation of the national distribution centre we are confident that we can introduce new efficiencies and cost savings.”