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Outsource magazine: thought-leadership and outsourcing strategy | April 23, 2014

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DHL secures British Gas tie-in

Outsource Magazine

DHL Supply Chain has won a £17m+ ($25.3m+) contract to implement a national supply chain solution for energy giant British Gas, it was announced this week. The five-year deal will focus on optimising the financial and environmental efficiency of the roll-out of British Gas’s smart-metering system, which will see 16 million meters installed for the firm’s 12 million customers.

“DHL will deliver a national supply chain using a regional network to manage meter assets including smart meters, in-house displays and associated ancillary items from British Gas’ national warehouse to DHL’s national distribution network of collection points,,, Additionally, DHL’s network will manage returned meters from collection points to the relevant asset owners, while DHL will work closely with British Gas to further minimise the environmental impact of the roll-out through the management of waste materials and the use of teardrop trailers,” according to a company statement.

“The flexible regional solution implemented by DHL will enable us to effectively manage the volumes expected across the roll-out period while maintaining exceptional service quality. We are confident that the robust and cost-effective solution proposed by DHL will help kick-start our smart meter roll-out,” said Rob Morton, Supply Chain Director, British Gas.

Tim Slater, Managing Director – Industrial, DHL Supply Chain UK&I, added: “DHL already operates smart metering operations across Europe and has the experience and capability to provide British Gas with a reliable solution for this complex and large scale roll-out in the UK. Our partnership with British Gas will support mutual growth objectives in the market while facilitating the creation of new jobs. Additionally, the in-built ability to review the metering supply chain model enables DHL to deliver year-on-year innovative improvements, providing further operational and financial benefits to British Gas.”

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