DHL Exel Supply Chain has been awarded a 10 million (12.6 million euro) contract to provide dedicated distribution services to EcoTherm Insulation (UK) Ltd, a world leader in rigid thermal insulation boards. The five year contract will see DHL introduce and manage the entire distribution requirement for EcoTherm, delivering insulation board to merchants and distributors across the UK.
Following significant growth in the market for insulation materials over the last few years, EcoTherm sought to enhance its distribution capability to meet the growing needs of the business, take advantage of significant efficiencies and offer improved levels of service and professionalism to their customer base. DHLs expertise in delivering solutions in the manufacturing, construction, and industrial sectors means it has the capabilities to be able to offer and deliver scalable operations designed to meet EcoTherms requirements.
David Marsh, Operations Director at EcoTherm commented: Our business has grown substantially over the last few years and we recognized that quick and convenient deliveries were fundamental to our customers. Were delighted to be partnering with DHL, whose logistical experience and technical expertise will enable us to bring innovation to our delivery operation to drive out cost and inefficiencies as well carbon emissions.
Core to DHLs appointment is its ability to employ technical innovation and draw on best practice it has established in other sectors, such as the use of alternative fuel technologies, efficient supplier collections and payload improvements.
As part of the contract, DHL will be introducing a core fleet of EcoTherm liveried vehicles whilst developing agreements with hauliers to provide additional capacity to handle peaks in demand. This managed transport solution will provide a coordinated operation to meet all the needs of the EcoTherm business, including finished goods distribution, supplier collections and the use of high-cube trailers to accommodate larger customer orders, all leading to enhanced lead times.
John Davies, Head of Building Products at DHL Exel Supply Chain said: There comes a tipping point when a company needs to move away from spot hire haulage to managing its own fleet. It can be a daunting prospect, but bringing on board an experienced partner like DHL means that a company can make the most of existing best practice and avoid costly pitfalls due to inefficiency. As we move forward with this contract we will be looking at ways to take advantage of latest developments, especially in the areas of reducing C02 emissions and vehicle miles, thus creating a cost-effective and sustainable distribution network.
Reducing fuel consumption and road miles are key elements of DHLs climate protection strategy. Together with its parent company, Deutsche Post World Net, DHL has embarked on a GoGreen program which aims to improve its own carbon efficiency, as well as that of its subcontractors, by 30% by the year 2020.