Openfield appoints DHL as logistics partner (UK)
DHL Exel Supply Chain has been appointed supply chain partner to Openfield, the planned new merged business of Grainfarmers and Centaur Grain.
In a five year contract worth around GBP 125 million (154 million euro), DHL will be using its logistics expertise to work with existing grain carriers to establish a more efficient supply chain.
This appointment comes after three years of collaboration between the companies, looking into ways that the existing supply chain could be streamlined to counter increasing operating costs and growing food costs.
The new contract involves DHL taking over the existing Grainfarmers fleet which makes around 15 pct of the deliveries in any one year. Primarily, DHL will be managing and coordinating deliveries to ensure that the supply chain is working to its maximum potential, with waiting times and empty running reduced, both of which are extremely wasteful in terms of time and the environment.
DHL Exel Supply Chain has been appointed supply chain partner to Openfield, the planned new merged business of Grainfarmers and Centaur Grain.
In a five year contract worth around GBP 125 million (154 million euro), DHL will be using its logistics expertise to work with existing grain carriers to establish a more efficient supply chain.
This appointment comes after three years of collaboration between the companies, looking into ways that the existing supply chain could be streamlined to counter increasing operating costs and growing food costs.
During this collaboration, DHL Exel Supply Chain was able to draw on its knowledge and technological expertise gained from improving supply chain efficiencies in other industries, such as automotive and construction, to develop a best practice model for the transportation of grain in the UK.
Major efficiency savings
Through trials with both Grainfarmers and Centaur Grain and one of their key food processing customers, this best practice model has already demonstrated significant improvements in supply chain efficiency. When applied across the two businesses, DHL expects there to be up to a 10 pct reduction in food miles and a saving of 2,500 tonnes of CO2 per annum, achieved through greater collaboration and forward planning.
DHL Exel Supply Chain will now be putting this model into practice across all Openfield’s grain logistics operations, covering 120,000 grain movements each year. From the DHL Exel Supply Chain control tower at Openfield’s headquarters in Colsterworth, Lincolnshire, DHL will be using technology to order, plan and optimize grain movements whilst also managing payments and providing delivery confirmation and support services.
Reducing waiting times and empty running
The new contract involves DHL taking over the existing Grainfarmers fleet which makes around 15 pct of the deliveries in any one year. Primarily, DHL will be managing and coordinating deliveries to ensure that the supply chain is working to its maximum potential, with waiting times and empty running reduced, both of which are extremely wasteful in terms of time and the environment.
The best practice model developed through our collaboration really gets to the bottom of the issues that this sector has been facing in the delivery of grain, and by doing so there are some significant benefits that will really differentiate Openfield in the agricultural market.
