DHL SUPPLY CHAIN UK AWARDED THREE-YEAR CONTRACT BY SSE & SGN

DHL Supply Chain today announces it has been awarded a three-year contract by SSE plc, the FTSE listed energy company which owns, operates and invests in economically regulated electricity networks, renewables and flexible thermal generation to support the net zero transition, and SGN, the gas distribution network and industry innovator serving 5.9m homes and businesses in Scotland & Southern England. SSE provides power to 4m homes and businesses in the North of Scotland and Central Southern England.

DHL will provide logistics support to both businesses from two sites in Thatcham and Glasgow, to provide operations support for the delivery of essential services and sustainable energy solutions.  This includes the handling of electrical plant equipment including EV chargers, along with gas network pipes and parts required to build and operate low carbon infrastructure that will enable the net zero transition. 

The new contract will see DHL operations running five days a week for SSE and SGN, while also providing a 24/7 business continuity team across both warehouse and transport, ready to respond to urgent or emergency cases including reconnecting gas and electricity supply. DHL was selected based on the scale and reliability of its operation as well as the breadth of its experience. DHL will be working with both businesses to undertake a strategic review of the inbound and outbound supply chains to identify future efficiencies.

DHL is supporting both businesses with sustainable logistics solutions, including the implementation of route optimisation which enhances efficiency and drives down road miles, reducing emissions and creating a greener final mile.

Providing specialist reverse logistics services, DHL is also supporting SSE and SGN with a circular solution by collecting used equipment, cable and materials containing precious metals that can be recycled and reused. Currently DHL is collecting 14 tonnes of materials per week to be recycled through this service, with a successful recycle rate of 98%.

Neil Arnott, Director of Logistics, SSE, says, “Our business priority is always to provide an efficient and effective service to meet the needs of our customers and we are delighted to be partnering with DHL as an industry expert, perfectly positioned to support us in evolving our operation. The transition to net zero is at the forefront of our development and DHL’s aligned values will help us to reduce logistics-related emissions and develop circular solutions.”

Valerie Jamieson, Director of Procurement & Supply Chain. SGN, says, “At SGN, we are committed to delivering high customer satisfaction as we strive to establish the business as the market leader in gas distribution. Through our new partnership, we will be leveraging the expertise DHL offers to run the most effective and efficient operation possible, including improving our final mile service and optimising warehouse processes.”

Gillian Townsend, Senior Business Director, Engineering, Manufacturing, Energy & Chemicals, DHL Supply Chain, adds, “Working with two key players in the electric and gas space is an exciting opportunity, particularly as we look towards a greener future for UK energy. We look forward to supporting the growth of both SSE and SGN with careful evaluation of their supply chains and the implementation of innovative and expert solutions to improve efficiency.”