DHL wins contract

DHL Logistics has won a 10-year deal totaling GBP 1.6 billion /Euro 2.3 billion in revenue to manage GBP 22 billion/Euro 32 billion total spend with the UK Government's Department of Health. DHL will target over GBP 1 billion/Euro 1.4 billion savings over the contract period back to the English National Health Service (NHS). Klaus Zumwinkel, CEO and Chairman of Deutsche Post World Net, said the contract marked the significant success of the Group's strategy: "After the take-over of Exel and given DHL's extensive expertise in the health sector, we were able to make our customer a truly convincing offer. We now reap the benefits of both our internationalization strategy and our broad product range."
 DHL will run a division called NHS Supply Chain, on behalf of NHS Business Services Authority.

Under the agreement, DHL will run a division called NHS Supply Chain, on behalf of NHS Business Services Authority, and be responsible for delivering all procurement and logistics services across an initial 500,000 products to support 600 hospitals and other health providers in England. The business will ensure that public health (NHS) authorities can dedicate more resources to patient care and continue to manage their cost base. It will help protect existing jobs and lead to the creation of over 1,000 additional positions.

John Allan, Chief Executive of DHL's Logistics division and Management Board Member of Deutsche Post World Net, says, "This contract is both good for staff and good for the NHS. We are committed to targeting savings on behalf of the Department of Health that can be directed back to patient care by building upon the success of both NHS Logistics and some of the scope of the NHS Purchasing and Supply Agency. The contract will ensure that NHS Trusts get access to a wide range of high quality, innovative products that will be selected by having extensive dialogue and testing procedures with clinicians. We are thrilled to play such a major part in this change to manage and deliver a world-class supply chain for the NHS."

 John Pattullo, Chief Operating Officer for DHL Exel Supply Chain, Europe, Middle East and Africa.
John Pattullo, Chief Operating Officer for DHL Exel Supply Chain, Europe, Middle East and Africa, adds, "By applying commercial experience and procedures to core logistics and procurement functions, and working very closely with the supplier community, we now have a unique opportunity to deliver innovative, high quality products to support public health in England. This is exactly the kind of strategic sourcing deal where we think we can generate major value for our customers, in this case - the NHS."