New Morrisons contract for DHL

Morrisons has renewed its national fuel distribution operations with DHL Supply Chain for a further six years. The new contract extends the relationship to 2018, and will see DHL manage the scheduling and delivery of fuel to the grocer's network of 335 forecourts and Regional Distribution Centres across the UK.

DHL centrally manages Morrisons' nationwide fuel operation from its fuel planning centre in Whitwood, West Yorkshire. The fuel stock at each of the grocer's 335 forecourts is measured remotely every 90 seconds through a sophisticated IT system developed by DHL, equipping Morrisons with real time product availability and the ability to respond rapidly to changing demand. Forecourt product inventory is maintained and monitored by the DHL planning team on a 24/7 basis and replenished to an agreed, pre-determined level. The fuel is then replenished by a team of 206 professional, highly skilled drivers.

As part of the new deal, DHL has significantly invested in upgrading its entire fleet with 56 new Scania tractor units, phased into the operation throughout 2013. To accommodate volume spikes beyond the core fleet's capacity, Morrisons can also call upon DHL's shared user tanker fleet, Network Fuels, which support multiple DHL fuel contracts.

Mark Todd, Petrol Director at Morrisons, commented: "To ensure certainty of supply at the lowest possible cost, we sought a supply chain partner capable of delivering a robust, resilient but 2/2 flexible operation. The new technology and central planning function that DHL has developed enables us to meet changing fuel purchasing patterns in real time; a critical ability in what is a highly competitive market."

Adam Franklin, Managing Director, DHL Supply Chain - Industrial added: "DHL successfully retained this strategically important contract thanks to our proven capabilities and excellent delivery performance. Our innovative new technology and commitment to continuous improvement lie at the heart of our relationship with Morrisons."