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    International News: BP UK Picks DHL for Logistics

    A four-year contract signed to manage the UK warehousing and distribution.

    UNITED KINGDOM -- BP's UK Convenience Retail business, which manages the oil giant's fuel station convenience stores awarded a four-year contract to DHL Supply Chain to manage the UK warehousing and distribution of dry goods and chilled produce, according to a report by handyshippinguide.com.

    DHL has been working with BP in the UK for more than four years, and implemented efficiency improvements for BP's convenience store supply chain. The new contract will aim to improve productivity targets, and cost and carbon savings, the report stated.

    DHL will manage the storage and delivery of 20 million cases of dry and chilled goods to all 360 BP forecourts around the UK each year, and will take on inventory forecasting and management of BP Retail's service call center -- which supports round-the-clock inbound replenishment orders and outbound activities, such as goods collection and pre-emptive ordering.

    "We believe that DHL truly understands our business objectives, from improving the in-store experience our customers receive, cutting costs in operations, right through to reducing our environmental impact," Rebecca Harrison, supply chain manager of BP Trading, said in the report. "The team is continuously presenting innovative ways of managing our operations, which to date have improved productivity levels by 20 percent. This kind of progressive thinking and initiative is exactly what we need to increase profitability and help us to achieve our sustainability objectives."

    To build on existing carbon savings, DHL plans to fit all vehicles with aerodynamic body kits to improve fuel efficiency by up to 10 percent, and optimized delivery schedules should reduce the number of vehicles on the road, cutting costs and reducing BP's carbon footprint, according to the report.

    Further supply chain enhancements include plans to share empty warehouse space with a non-competitive third party and backhauling.

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