Fuelling the partnership

Working in ‘a highly competitive market’ DHL keeps deliveries on track for Morrisons with 56 new Scania Euro V tractor units

Working in ‘a highly competitive market’ DHL keeps deliveries on track for Morrisons with 56 new Scania Euro V tractor units

Morrisons has strengthened its relationship with DHL, extending its national fuel distribution agreement for a further six years.

In the new contract DHL retains responsibility for the scheduling and delivery of fuel from its fuel planning centre in Whitwood, West Yorkshire to Morrisons’ network of 335 forecourts and regional distribution centres across the UK.

Speaking to Fuel Oil News’ Liz Boardman, Stuart Carlyon, DHL’s vice president fuels and chemicals explained: “Morrisons’ decision to renew the contract demonstrates its confidence in our partnership and the closeness of our relationship. We see ourselves as one big team and work hard to ensure that customers get the supply chain they deserve.”

 

“Fuel stock is checked every 90 seconds”

 

“In 2013, DHL won our Inbound Supplier of the Year accolade, fighting off competition from our many grocery suppliers. It was testament to a job well done,” Mark Todd, Morrisons’ petrol director told FON.

Using DHL’s innovative IT system, EPICS 2, fuel stock is checked every 90 seconds at each forecourt. Product inventory is maintained and monitored by DHL’s planning team on a 24/7 basis and replenished to a pre-agreed level. “This gives the team autonomy and control over inventory and the ability to schedule deliveries and prioritise loads. It also helps to manage any panic buying situations,” said Stuart.

 

Driving forward

As part of the new deal DHL has upgraded its entire fleet, bringing in 56 new Scania tractor units to be utilised by the 206 drivers assigned to the Morrisons’ contract.

“A key element of our renewal strategy was to propose the total replacement of the existing mid life tractor units with a new fleet of Euro V (SCR technology) tractor units before the Euro VI legislation came into force at the end of 2013. The aim of this was to maximise the period before we would have to move to the untried Euro VI technology,” explained Stuart. “We chose Scanias from a whole life cost view point with particular focus on better fuel efficiency.”

“To ensure certainty of supply at the lowest possible cost, we sought a supply chain partner capable of delivering a robust, resilient but flexible operation,” adds Mark. “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.”

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