DHL wins logistics contract for gas and electricity companies

DHL Supply Chain has announced that it has been awarded a three-year contract to provide logistical support to two Scottish companies: SSE in the energy sector and SGN in the gas sector.

Both companies operate gas and electricity networks, respectively, which serve millions of homes in Scotland and parts of England.

Valerie Jamieson, Director of Procurement and Supply Chain at SGN, said: “Through our new partnership, we will leverage DHL’s expertise to run the most effective and efficient operations, including improving our last mile service and optimisation of warehouse processes.”

Neil Arnott, Director of Logistics at SSE, was similar, adding that DHL’s net-zero carbon commitments “will be helpful [SSE] reduce logistics-related emissions and develop circular solutions”.

One thing DHL plans to implement in both companies’ logistics operations is route optimization, which aims to increase efficiency and reduce emissions by eliminating unnecessary road miles.

DHL intends to make its solutions circular by also offering reverse logistics services. It collects and transports used equipment, cables and materials to be recycled or reused. According to DHL, it currently collects 14 tons of material per week in this way “with a successful recycling rate of 98%”.

Gillian Townsend, Senior Business Director of Engineering, Manufacturing, Energy, and Chemicals at DHL Supply Chain, said: “Teaming up with two key players in the power and gas sectors is an exciting opportunity, especially as we envision a greener future for UK energy . We look forward to supporting the growth of SSE and SGN by carefully assessing their supply chains and implementing innovative and expert solutions to increase efficiency.”

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