DHL wins B&Q contract in UK

DHL Supply Chain has won a multi-million pound contract to manage B&Q’s distribution needs at locations across the UK. The company will manage B&Q’s newly-built Distribution Centre in Swindon, and also be responsible for handling supply requirements at B&Q’s Regional Consolidation Centre in Preston Brook.

The new contract also safeguards the company’s operations in Worksop and Radlett.

Commencing in February 2012, the two-year contract will see DHL take responsibility for managing the majority of B&Q’s warehousing and distribution, with peak volume through the Swindon RDC exceeding 1m cases a week.

DHL will also be responsible for receiving, put away and distributing stock to stores in the geographical area as well as the remaining regional consolidation centres throughout the UK.

In addition, at the Preston Brook Regional Consolidation Centre, DHL will receive stock from RDCs and vendors, manage cross docking, and deliver an average 250 store loads a week.

Jon Wood, vice president of non food retail at DHL Supply Chain, said: “We’re delighted to have secured this landmark contract with B&Q which takes our 20-year partnership to a new level. Under the new agreement we are looking forward to using our expertise to create synergies and remove cost from B&Q’s value chain.”

Rick Jones, director of value chain logistics at B&Q, added: “We announced our plans to review our distribution strategy back in June leading to the establishment of a new regional distribution centre in Swindon, enabling us to improve our service to stores and in turn our customers.

“The Swindon DC will create 550 jobs for the local area and represents an investment of £77.4m.  We are delighted that DHL will be our partner for our new development in Swindon which is due to commence operating from the summer.”

Eight companies pitched for the contract.