DHL wins national contract for Sainsbury's TU fashion brand
DHL Exel Supply Chain has been awarded a GBP 37 million, five-year contract with J Sainsbury plc, for the provision of warehouse services for the “TU” fashion clothing range. The adult clothing range has been managed by DHL Exel Supply Chain since 2004, and the children’s range was included in operations from May 2006. DHL Exel Supply Chain, through its Department Stores & Fashion division, will now manage UK warehouse management operations for the entire clothing TU range at Sainsbury’s Fashion Business dedicated 20,000 sq m facility in Coventry until November 2009.
The DHL Exel Supply Chain operation will incorporate the receipt and storage of Sainsbury’s adult and children’s clothing ranges to the central Coventry warehouse. Pre retailing services which makes garments ready for store includes store picking, conversion from boxed to hanging garment and onward transportation to 200 stores nationwide. Retek RDM ,a new warehouse management system, was installed into the Coventry site in June 2006 which has helped to enable a smooth transition.
As DHL Exel Supply Chain has undertaken both warehousing and transportation operations for Sainsbury’s grocery business for many years and a robust business relationship exists. This coupled with the specialist understanding of the UK fashion industry by the Department Stores and Fashion division, provides key benefits of experience and expertise to Sainsbury’s for the growth of its TU clothing range which was introduced in 2004.
Paul Richardson, managing director, DHL Exel Supply Chain Department Stores and Fashion said, “Sainsbury’s, as one of the UK’s leading supermarket chains, is a major contract within the fashion division. As consumers visit supermarkets regularly clothing products have a shorter life cycle, which results in a high demand for quality fashion together with the convenience of availability during the weekly grocery shop. With the leverage of our fashion knowledge and experience and our distribution network we can continue to support Sainsbury’s to meet the challenges of the complex UK and worldwide retail marketplace.”
