MOTHERCARE SELECTS EXEL TO MANAGE NEW UK LOGISTICS HUB

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Exel, the global leader in supply chain management, has won a five-year contract to manage Mothercare's UK distribution centres as part of its new warehouse solution.

The two companies will work together to relocate Mothercare's operations from its Support Distribution Centre (SDC) in Coventry, to a new National Distribution Centre (NDC). The new NDC, which is 300,000 sq ft, will be adjacent to Mothercare's existing UK facility, Daventry International Distribution Centre (DIDC). These buildings will form the hub of Mothercare's UK logistics operations and support its future growth.

Construction of the new warehouse will commence on 29 November 2004 and the move from the SDC will take place at the end of May 2005.

The facility will enable ongoing improvements in Mothercare's supply chain to drive throughput, increase product availability in stores and facilitate enhanced category management.

Staff employed currently at the Coventry-based SDC will be encouraged to transfer to the new NDC and staff employed at the existing DIDC will continue in their present roles.

The migration will be managed by a joint working party comprised of senior management from Mothercare and Exel, who will set up and manage the new site. Existing teams, systems, stock levels and vehicle services will be retained in their current forms.

Colin Astbury, Logistics Director, Mothercare, said, "Our plans for the new supply chain is the ideal solution for Mothercare's distribution needs, giving us flexibility for the future as we progress our growth plans. We look forward to working in partnership with Exel as we develop our new site."

Eddie Aston, Divisional Director for Exel's Retail sector, said, "This is an important step in Mothercare's development and we are working very closely with the organisation to ensure a smooth transition. Having worked together for many years, I am confident that our partnership will continue to support operations, now and in the future."

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