House of Fraser signs £33.7 million multi-channel deal with DHL

DHL Supply Chain has announced a new £33.7 million (approx. 36 million Euros) multi-channel contract with House of Fraser until 2012.

The new commercial agreement is an extension of the existing contract, with the added inclusion of the retailer's e-commerce business and recently launched wedding list service, both of which were awarded to DHL's specialist fashion unit in March 2009.

DHL's existing six-year relationship with House of Fraser provided a solid platform to support a multi-channel strategy. Both companies worked in partnership to create an e-commerce solution that was incorporated into House of Fraser's supply chain operations for its 63 UK and Irish stores. Target service levels were achieved immediately from the on-line go-live date of 2 March 2009, plus 99.8 per cent of first time consumer deliveries.

House of Fraser's Supply Chain Director Mark Holland said, "I am delighted to extend the commercial agreement between DHL and House of Fraser. DHL's existing knowledge and understanding of our business enabled them to deliver a strong multi-channel solution to a demanding deadline with no disruption to this key part of our business."

"Dynamic relationship"

The integrated solution optimized existing warehouse and labor resources at the retailer's 16,723 sq m National Distribution Center in Milton Keynes, Bedfordshire, creating significant cost savings and cutting an average of three days out of the supply chain to support House of Fraser's requirement for increased speed to market. The multi-channel operation was set up within a three-month deadline, which involved the transfer and integration of the on-line business from a previous supplier.

Paul Richardson, Managing Director UK, DHL Supply Chain Fashion adds, "The new commercial agreement is a commitment from House of Fraser which further emphasizes the strength of this partnership. This is a dynamic relationship whereby DHL manages the complete end-to-end supply chain covering inbound logistics, multi-channel operations including ecommerce, national transport, warehousing and vendor management. The integrated solution provides a reliable platform for House of Fraser's further growth and development."

DHL now manages over 30 million units annually from the Milton Keynes site which spans House of Fraser's renowned range of products across several market segments and brand names, including fashion, beauty, homewares, perfume, linen and jewellery.