DHL wins logistics contract for gas and electric companies

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

Both companies operate gas and electricity networks, respectively, that provide services to 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 be leveraging the expertise DHL offers to run the most effective and efficient operation possible, including improving our final mile service and optimizing warehouse processes.”

SSE’s Director of Logistics Neil Arnott shared a similar sentiment, also adding that DHL’s commitments to net zero carbon emissions “will help [SSE] to reduce logistics-related emissions and develop circular solutions”.

One thing DHL plans to implement in the logistics operations of both companies is route optimization, which it expects to enhance efficiency and reduce emissions by eliminating unnecessary mileage on the road.

DHL intends to make its solutions circular by also providing reverse logistics services. It will collect and transport used equipment, cables, and materials to be recycled or reused. DHL claims to currently be collecting 14 tonnes of materials per week 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: “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.”

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