DHL Supply Chain has signed a contract worth £4.3 million (€4.7 million) with accessories andclothing retailer Tie Rack Trading Ltd, extending its partnership until 2012.
The contract renews warehousing services for both the Tie Rack and Rolling Luggage brandsoperated from the multi-user Hams Hall location in the West Midlands, UK, DHL Asia Pacificannounced. DHL’s specialist fashion unit will continue to run all international inbound freight andwarehousing operations serving 197 Tie Rack stores and 40 Rolling Luggage outlets in the UK, Europeand the USA. DHL manages a full range of services, including inbound freight from suppliers inIndia and China, as well as cross-docking, pick and pack, dispatch and returns handling.
The contract also includes a new consolidation centre based in Hong Kong and opened by DHL inMarch 2009 to facilitate a shorter and quicker supply chain to markets in the Far East andAustralia. Through the new service, Tie Rack is able to ship products sourced in Asia direct to theHong Kong warehouse where they are picked, packed and dispatched to over 50 stores and franchisesacross Australasia.
Lindsay Smetham, Tie Rack’s Logistics Manager, said: “We have been delighted with theperformance of both the UK and the Hong Kong operations and the strength and effectiveness of ourpartnership with DHL. The Hams Hall facility provides flexible labour and storage services and theintegration of DHL’s warehouse Styleflow system has improved the accuracy and speed of operationsthrough the use of scan pick technology. DHL has also demonstrated an ability to adapt operationsto support the strong growth and expansion of our Rolling Luggage network with solutions forincreasing volumes and larger products.”
Jonathan Pilbro, Business Director, UK and Ireland, DHL Supply Chain, Fashion, added: “We’rethrilled to be continuing our partnership with this global brand. Tie Rack’s continued investmentdemonstrates the benefits of multi-user warehouse operations, not least with flexibility andeconomies of scale. This year, we were able to leverage DHL’s global reach to extend our supportbeyond UK operations into an international supply chain solution through the opening of the HongKong consolidation center. This now presents a strong platform which supports growth into newmarkets in the Far East including new stores in China.”
Phillip Chin, Global Head, International Supply Chain, DHL Global Forwarding, said: “We arevery delighted with the contract extension. At DHL, building long-term relationship with ourcustomers has always been a key priority, and it is most rewarding when customers stay with us.Despite the volatile business environment, we are seeing increasing demand for supply chain in theglobal fashion industry. With companies looking to streamline their supply chains to better managetheir product lifecycle and enhance speed-to-market of their products, we are confident in seeingsustained growth in this sector and will continue to develop solutions to fulfil their variedneeds.”
