DHL Exel Supply Chain has been awarded a 37 million (EU 55 Million), five-year contract with J Sainsbury plc, to provide warehouse services for the "TU" fashion clothing range.
Through its Department Stores & Fashion Division, DHL will manage all UK warehouse management operations for the entire clothing TU range from Sainsbury's Fashion-dedicated 20,000 sq m facility in Coventry. DHL already manages Sainsbury's adult clothing range, and the children's range was included in operations from May 2006.
DHL Exel Supply Chain will incorporate the receipt and storage of Sainsbury's adult and children's clothing ranges into the central Coventry warehouse. Pre retailing services - making garments ready for store including store picking, conversion from boxed to hanging garment and onward transportation to 200 stores nationwide - will also be included within the contract. A new warehouse management system, Retek RDM, which was installed at the Coventry site in June 2006, will help enable a smooth transition with the added volumes.
As DHL Exel Supply Chain has undertaken both warehousing and transportation operations for Sainsbury's grocery business for many years, a robust business relationship exists between the two. Coupled with DHL's specialist understanding of the UK fashion industry, this provides the necessary experience and expertise to help Sainsbury further grow its TU clothing range..
Paul Richardson, managing director, DHL Exel Supply Chain Department Stores and Fashion said, "Sainsbury's, as one of the UK's leading supermarket chains, is a major contract within the fashion division. As consumers visit supermarkets regularly clothing products have a shorter life cycle, which results in a high demand for quality fashion together with the convenience of availability during the weekly grocery shop. With the leverage of our fashion knowledge and experience and our distribution network we can continue to support Sainsbury's meet the challenges of the complex UK and worldwide retail marketplace."