Spicers signs £38m contract with DHL

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Spicers has signed a contract with DHL Supply Chain to handle UK distribution for the office products wholesaler in a deal worth £38 million across five years.

DHL will manage distribution across Spicers’ supply chain network from regional distribution centres located in Greenwich, Chessington, Bristol, Birmingham, Heywood and Glasgow to dealers and customers.

It will mange a dedicated fleet of 98 vehicles and has been tasked with enhancing efficiency and reducing costs across the supply chain.

DHL will be able to monitor fuel usage and better understand how the vehicle is being driven through the deployment of vehicle telematic systems and it will use the information generated to train and manage drivers and minimise fuel consumption.

Implementation of tracking systems will also allow DHL to oversee route planning, understand the need for variances and enable future planning across the network.

This is designed to increase transport efficiency and help improve the security of vehicles by enabling any stolen lorries to be traced.

In addition, the introduction of tear-drop trailers will help to boost fuel efficiency and improve fuel consumption by approximately eight per cent.

All 180 employees from the previous contractor have been retained by DHL. This includes co-ordinating a series of improvement workshops to encourage collaboration within teams and to build on the existing expertise within Spicers’ supply chain.

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