Exel has been awarded a five-year contract with European DIY retailer, B&Q, and a new four-year contract with UK window extruders, WHS Halo.
In terms of the B&Q contract, Exel will manage a £65 million, purpose-built, 800,000 sq ft, semi-automated distribution centre in Worksop, Nottinghamshire, which will serve as a hub for storage of B&Q’s products, and distribution to over 300 UK stores. The contract also includes a transport operation making inter-depot and local store deliveries.
“This development is critical to B&Q and will be at the heart of our distribution operations for the UK,” said Dave Lowther, Director of Logistics, B&Q. “The facility will open in late 2005 and steadily take in more stock until summer 2006 when the start-up phase will be complete. It is the first B&Q site to contain specialist automation, comprising a fully automated pallet high-bay and a mini-load tote handling system for small parts storage. We aim to expand the DC to 1,000,000 sq ft to ensure that we can serve our UK market. We are sure that this new DC will support our anticipated business growth and dynamic store opening programme.”
Gerard Jones, Business Development Director, Exel's Retail sector said, "We are working very closely together on all aspects of this operation including site build, development and recruitment. The distribution centre will create up to 1,000 jobs in the region and has excellent transport links, which means that we can meet the organisation's needs, now and in the future.”
The WHS Halo contract involves Exel in distribution from Halo’s Birmingham storage facility to 130 customers every day.
Together, Exel and WHS Halo will focus on improved vehicle utilisation to meet the targets of one of WHS Halo's Key Performance Indicators (KPIs). In January, a new fleet of 10 WHS Halo-liveried MAN draw bar vehicles with trailers manufactured by Don-Burr will be delivered, significantly increasing on-road capacity over the previous fleet. The team will include 11 drivers, six of whom will have been transferred from the existing operation.
"This is a very important contract award for Exel at a time when one of our new business priorities is to expand our work in the building sector," explained Jon Ravenhall, MD, Contract Logistics, Exel's Industrial sector - Europe.
