Supply Chain News / Warehousing

DHL's £100m Panasonic Deal

January 16, 2013
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DHL Supply Chain has been awarded a long-term contract worth over £100m (€120m) with Panasonic, to manage its warehousing and transport operation.

The contract, which was won as part of a competitive tender, will see DHL assume end-to-end responsibility for Panasonic’s UK supply chain. In a statement, DHL has promised that the deal wil result in increased efficiency, improved services, reduced costs and greater visibility. DHL will carry out order fulfillment of high-end consumer electronic goods, manage a shared warehouse operation, and enhance the leading electronics supplier’s domestic transport operation.

In turn, the project is set to generate a greater return on Panasonic’s investment in its supply chain infrastructure through the conversion of its existing facility into a state-of-the-art technology campus featuring an enhanced plug and play IT solution plus a dedicated Transport Control Tower, providing full visibility of the secure transport network.

In taking on the contract, DHL will also utilize its global reach and scale to create a platform for transformational change, replicable across Panasonic’s European supply chain business. The operation will provide further benefits through the ability to aggregate data across the operation, providing greater insight into operational efficiencies, total product costs and customer satisfaction.

Nigel Cowmeadow, Chief Supply Chain Officer at Panasonic Europe commented: “As our business evolves, it was necessary to bring in an innovative logistics specialist who understands the emerging needs of the technology sector. Our business needs the flexibility to adapt to the demands of current and new markets, addressing rapid product lifecycles while consistently improving on our customers’ experience. Panasonic strives to find new ways to deliver customer value and DHL has demonstrated that it is a suitable partner to join us on our journey.”

Paul Richardson, Managing Director of Specialist Services at DHL Supply Chain, UK & Ireland commented: “This is a significant solution that has been constructed in a very short timescale. Throughout, we have taken a truly collaborative approach to the project, working in partnership with Panasonic and adding value by exploiting our flexibility, global reach and focus on commercial innovation.”

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