DHL to Deliver Cost and Carbon Savings across BP Retail Network

DHL Supply Chain has been awarded a four year contract worth £75 million (US$114 million) to manage the UK warehousing and distribution of dry goods and chilled produce for the latter’s UK Convenience Retail business. The former has a track record implementing efficiency improvements for the latter. The contract will see the two companies improve on productivity targets as well as cost and carbon savings.

As part of the contract, DHL will manage the storage and delivery of 20 million cases of dry and chilled goods to all 360 BP forecourts around the UK each year. The team will also take on inventory forecasting and the management of BP Retail's service call center, which supports round-the-clock inbound replenishment orders and outbound activities such as goods collection and pre-emptive ordering.

To build on existing carbon savings, DHL plans to fit all vehicles with aerodynamic body kits, which can improve fuel efficiency by up to 10 percent. In addition, optimized delivery schedules will reduce the number of vehicles on the road, thereby cutting costs and reducing BP's carbon footprint.

Further strategic supply chain enhancements include plans to share empty warehouse space with a non-competitive third party and backhauling.

DHL, www.dhl.com