DHL Supply Chain has been awarded a new contract by Morrisons to manage its wholesale logistics operations for six years.
Building on its 20-plus year partnership, the new contract will see DHL support the retailer with order fulfilment, store delivery and IT services to serve its wholesale operations, starting with 1,650 stores in the McColl’s Retail Group, exclusively served by Morrisons under its Safeway wholesale brand.
Morrisons is the UK’s fourth largest supermarket group and the second largest fresh food producer. By moving into the wholesale market, Morrisons is leveraging its existing assets to access the UK’s growing convenience market.
The operation will require 200,000 sq ft of warehousing space and 200 vehicles from five strategically located picking centres, in Bury, Lutterworth, Livingston, Bridgewater and Allington. The contract will create 550 new jobs.
DHL was appointed for its "proven expertise in the fast-paced grocery and convenience sector as well as its IT capabilities and infrastructure".
Graeme Douglas, Supply Chain Director, Morrisons said: “As we continue to grow our wholesale business, we are confident that DHL will provide the services and experience needed to serve our customers well.”
The award will come as a welcome boost for DHL, which made headlines in the UK late last year after its failure to supply chicken to KFC saw hundreds of the food outlet's stores shuttered.
As a result, KFC drafted in its former partner Bidvest to deliver chicken to a number of its stores.