BSH Home Appliances has made NYK Logistics its sole provider of logistics services for small trade customers, as well as handling 50 per cent of bulk deliveries into the distribution networks of BSH’s major retail customers.
BSH, a subsidiary of BSH Bosch und Siemens, sells household appliances. NYK has been one of a number of logistics service providers since 2000 but has become a sole supplier under a new three year contract.
In 2007, it is expected that the operation will involve the delivery of around 600,000 units to more than 2,000 retailers throughout the UK.
Joe O’Sullivan, group logistics manager for BSH, said: “Transport costs in the UK are heading in one direction and consumer prices in the other which means we are constantly striving to find cost savings.”
In the past goods were delivered from a number of dedicated regional distribution centres.
Under the new contract orders from BSH’s smaller customers will be fulfilled via NYK’s network of high-security shared distribution sites, which also support operations on behalf of customers including Samsung, Sony and Honda.
In support of the BSH operation, NYK has added a site at Aveley in Essex to enhance coverage in the South East.
With the move to a shared-user approach, BSH expects to achieve a 14 per cent reduction in carbon dioxide emissions. Product is trunked into the network from BSH’s warehouse in Kettering by NYK using a fleet of dedicated, BSH liveried vehicles.