DHL Supply Chain has been awarded a three-year contract extension worth £40 million (€45.6 million)by communications group Telefónica UK, which uses O2 as its commercial brand.
DHL Supply Chain will provide enhanced services covering the full lifecycle of the product toTelefónica’s retail stores, distributors, business and consumer users. This includes thedistribution of mobile devices, SIM cards, modems and other accessories. DHL will provide productand package customisation to meet retail stores’ special feature / promotional requirements.
In addition, DHL will carry out reverse logistics services for managing and processingreturns and recycling. The agreement also includes second line customer service covering retailers’enquiries and operational support for Telefónica’s supply chain activities. DHL will also supportTelefónica in broadening its service offering and improving customer satisfaction across itsaftermarket services.
At an operational level, DHL has taken an innovative approach to managing the efficiency ofTelefónica’s site operations. By implementing Premis, a proprietary labour management system,combined with DHL’s continuous improvement programs, site productivity has improved by 25 per centover the last 12 months, helping drive down Telefónica’s operational costs significantly.
As a core pillar of its strategic agenda, DHL Supply Chain has invested heavily in the MobileCommunications Devices (MCD) market across EMEA, establishing industry partnerships and tailoringits solutions and product range to the needs of the market.
Nick Lefever, Head of Business Operations at Telefónica UK, commented: “The range ofinnovative services that DHL has implemented and its clear understanding of our company objectiveswere key to our extending the contract.”
Paul Richardson, Managing Director, Fashion, DHL Supply Chain commented: “We’re delighted toextend our relationship with Telefónica. The natural cultural fit between our organisations andshared objectives have been crucial to the success of the partnership. By focusing on constantlyimproving the end customer experience, we’re not only in a place to better our own businessprocesses, but also those of our partners.”
