BP’s has awarded a £75 million contract to DHL Supply Chain  to manage its the warehousing and distribution of goods for its UK convenience retail business until 2018.

The contract builds on DHL’s eight-year track record for implementing efficiency improvements for BP UK Convenience Retail, aiming to achieve even greater levels of cost and carbon savings for both organisations.   

As part of the contract, DHL provides warehousing, storage and transportation services to BP’s 350 company-owned forecourts across the UK, handling 19 million cases per year of 1,400 product lines including ambient, bread, sandwiches and high-value lines. DHL also operates a customer service function, providing frontline support on order and delivery queries for BP’s company-owned stores, in addition to purchasing and inventory planning.

In 2008, DHL and BP’s Target Neutral team embarked on a carbon neutral initiative to improve its commitment to the environment. DHL has since worked alongside BP to trial a number of initiatives that have reduced carbon emissions including waste recycling, backhauling and vehicle sharing. One such initiative, where DHL has enhanced its transportation of BP goods to Scottish forecourts, has provided BP with significant cost savings while reducing stem mileage by 12% year on year, reducing carbon by 14%.

Additionally, procedures such as measuring white and red fuel usage of its vehicles and the installation of energy efficient sensory lighting in warehouses will further support BP’s sustainability objectives.

Dean Wyatt, vice president of Business Development
Retail for DHL Supply Chain, UK, commented: “Working with BP over the years has required us to adapt our solutions to suit their expanding operations. As BP’s long-standing logistics partner, we are delighted to announce this partnership renewal and are committed to continually improving our service offering to deliver consistently high levels of service.”

Rebecca Harrison, supply chain manager, BP Trading, commented: “We’ve achieved some really impressive cost savings and carbon efficiencies through DHL’s strategic supply chain enhancements - which also mean that we have reduced our environmental footprint. DHL has delivered consistently high levels of service through delivery accuracy, stock availability and on-time delivery to BP forecourts so we look forward to seeing what new efficiencies this extension of the relationship will bring.”