£40m Telefónica contract extension for DHL

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O2 parent Telefónica UK has extended its contract with DHL Supply Chain for a three years in a deal worth £40 million.

Nick Lefever, head of business operations at Telefónica UK, said: “The range of innovative services that DHL has implemented and its clear understanding of our company objectives were key to our extending the contract.”

The communications operator, which uses O2 as its commercial brand, uses DHL’s distribution services for its mobile devices, SIM cards, modems and other accessories. DHL will provide product and package customisation, and reverse logistics services for managing and processing returns and recycling. The agreement also includes second line customer service covering retailers’ enquiries and operational support for Telefónica’s supply chain activities.

DHL has already implemented a proprietary labour management system, called Premis for Telefónica. It reckons that site productivity has improved by 25 per cent over the last 12 months.

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