DHL awarded new supply chain contract by National Grid

National Grid, the UK's largest Utilities business, has awarded DHL Supply Chain a new four year contract to provide logistics services across its UK gas and electricity networks.

DHL will be responsible for the logistics services associated with National Grid's primary warehouse stores, which are located in Birmingham and Didcot, as well as a number of smaller distribution centres around the country. These warehouses provide the materials and equipment required to support the maintenance and construction of National Grid's gas and electricity networks.

This new contract extends the nine year relationship between DHL and National Grid. DHL currently manages some of the smaller distribution centres that support National Grid's gas distribution business, and provides the transport of these materials.

The scope of DHL's operations have been extended, with the logistics provider now operating the primary stores in Birmingham and also providing strategic spare parts for the construction and maintenance work carried out on National Grid's electricity network. The primary distribution centre in Didcot, that supports the electricity business, will be managed by DHL and a network of smaller distribution centres will  cover 18 secondary and 51 tertiary (unmanned) stores nationwide. DHL will operate a fleet of vehicles making supplier collections and deliveries, and provide an inventory management system to optimise stock holding.

National Grid employees currently working in the Birmingham and Didcot centres will transfer to DHL under TUPE regulations.

Helen Barratt, Director of UK Shared Services at National Grid, said "We will leverage DHL's supply chain expertise and best practice to deliver logistics services more effectively across our UK business as we implement sustainable, and innovative energy solutions for the future."

"We're delighted that National Grid has extended its partnership with DHL," added Alan Paterson, Business Director - Utilities & Infrastructure at DHL Supply Chain. "Our in-depth knowledge of the business and experience of the wider Utilities and Infrastructure market mean we're ideally placed to help National Grid improve efficiency, improve service levels and deliver continuous improvement, as required under the RIIO framework*."

^{* (Revenue=Incentives+Innovation+Outputs)}