DHL wins contact extension to manage Debenhams' supply chain until 2015

DHL Supply Chain has won a contract to carry out order fulfilment of e-commerce services for Debenhams Direct. With Internet site traffic of nearly three million customers a month, DHL will manage a substantial proportion of essential processes from receipt of order to picking, packing and, where necessary, returns processing.

DHL was selected after Debenhams expressed a need for a service that could manage large capacities, enabling the retail giant to extend its online product range.  The Debenhams operation is set to grow in key phases over the next few years with volumes estimated at two million parcels this year, growing to four million over the next three years.

In addition, DHL has signed a three-year extension to its current contract to run to 2015 with Debenhams. The business will continue its existing agreement to develop and provide all Debenhams' warehouse and distribution services to stores across the UK and Ireland. Furthermore, DHL will operate the new Sherburn In Elmet facility near Leeds that commenced operations in April 2011. It is anticipated that this new operation will initially generate up to 350 jobs.

Paul Leggett, Head of Logistics, Debenhams said: "The wealth of experience and speed of delivery DHL has brought to this operation meant we were able to meet our desired deadline of implementing the new fulfilment system within 26 weeks. We wanted to take strategic ownership of our multichannel retail fulfilment, ultimately enabling us to serve our customers better. We are confident in DHL's ability to create a large scale solution using its existing skills and industry knowledge, and are delighted to extend this great partnership with them."

Paul Richardson, Managing Director Fashion, DHL Supply Chain UK & Ireland, said: "This is one of the largest fashion fulfilment operations of its type in terms of implementation, with DHL providing a holistic service to the retailer inclusive of IT infrastructure. Our partnership with Debenhams has lasted well over a decade, and this new contract is testament to the quality of service we can deliver."