DHL will provide distribution and logistics services to O2 Retail parent company Telefónica UK over the course of the next three years, it was announced today.
The supply chain business has secured a £40 million contract extension with the electricals and mobile phone specialist which will involve distributing products to retail stores and affiliates, as well as supplying goods to business and consumer customers.
Reverse logistics services for managing and processing O2’s returns and recycling will also be provided by the DHL team, in addition to other customer service support related to supply chain activity.
Nick Lefever, Head of Business Operations at Telefónica UK, commented: “The range of innovative services that DHL has implemented and its clear understanding of our company objectives were key to our extending the contract.”
In line with the pace of growth within the mobile phone market, DHL has invested heavily in the mobile communications devices market across the EMEA region and says it has built various industry partnerships and solutions to suit its customers’ requirements.
Paul Richardson, Managing Director of Fashion at DHL Supply Chain, said: “We’re delighted to extend our relationship with Telefónica.
“The natural cultural fit between our organisations and shared objectives have been crucial to the success of the partnership.
“By focusing on constantly improving the end customer experience, we’re not only in a place to better our own business processes, but also those of our partners.”
Last week DHL revealed that it has extended its contract to provide supply chain services to department store group House of Fraser, which includes the development of a warehouse dedicated to the retailer’s multichannel operation.
DHL has also agreed distribution and logistics deals with chocolate retailer Thorntons and department store group Debenhams so far this year.