DHL launches Westlink Consolidation Service

DHL Exel Supply Chain, the global leader in supply chain management, in association with CBI Northern Ireland has launched a new initiative aimed at easing congestion on Belfast’s Westlink. The Westlink Consolidation Service which has been developed by DHL in consultation with CBI Northern Ireland, will see inbound deliveries consolidated at DHL Exel Supply Chain’s distribution centre at Mallusk and delivered to their city centre destinations via DHL’s specialist consolidated service.

DHL Exel Supply Chain’s Freight Consolidation Service concept has already been successfully implemented for the BAA at the award-winning Heathrow Consolidation Centre serving London’s Heathrow Airport. DHL consolidates and delivers inbound goods to the majority retail and catering brands at the airport. Since the operation went live in 2001, 80% of retailers and catering brands at the airport have joined the collaboration project. As a result freight movements have been reduced by an average of 65% across the site.
In Bristol - working in partnership with Bristol City Council, DHL Exel Supply Chain works with more than 50 retailers and is now consolidating deliveries destined for the city centre - reducing the number of vehicles required to support these retailers’ deliveries by over 70%.

Development work being undertaken on the Westlink is expected to increase congestion in the Westlink area in the coming months. This has led CBI Northern Ireland’s Transport Forum to consider new and innovative measures that might assist in reducing the levels of congestion and the subsequent impact on the cost of doing business in the city. The CBI has estimated that transport costs for businesses in the greater Belfast area may rise by as much as 15% during 2006.

Barbara Anderson, Chair of the CBI Northern Ireland Transport Forum, welcomed the announcement, “This initiative is the result of an extensive research project which clearly highlighted the benefits of consolidating freight deliveries outside the city centre. It has drawn on the experience of other European cities and business centres and is particularly pertinent to the needs of businesses in Belfast at the present time due to the ongoing construction work on the Westlink. We have received an enormously positive response from retailers in Belfast and we are very optimistic that consolidated deliveries will become standard practice in Belfast City centre going forward.”

Michael O’Donoghue, Managing Director, DHL Exel Supply Chain, Ireland said, “Sustainable Transport Solutions are a top priority for DHL. Our experience in other markets where DHL Exel Supply Chain already manages consolidation platforms on behalf of its customers has enabled us to take a leadership position in this area. We are pleased to be in a position to make our expertise and experience work in a positive manner, adding value to the businesses we serve in this market. Belfast is a thriving city but one that faces significant issues in terms of traffic congestion and the subsequent impact on business competitiveness. We hope to continue our collaboration with all key stakeholders with a view to finding effective solutions to these challenges."

The service is expected to reduce the number of vehicles used to service Belfasts retailers with additional benefits including a reduction in pollution and noise. The service is also expected to provide considerable benefits to retailers receiving multiple deliveries during any given day, by consolidating all their deliveries into just one scheduled drop. This in turn will facilitate improved staff planning through set delivery windows, reduction in stock losses associated with goods left unattended on the street and the potential to increase retail space and reduce stock room space.

Richard Street, Supply Chain Director for Mothercare who will participate in the scheme added “The Westlink consolidation service is an excellent, forward thinking initiative. DHL Exel Supply Chain has been supporting our distribution to stores in Northern Ireland for many years - and using the consolidation service makes sense for us. Deliveries are timed to suit store merchandising plans and by working together we are reducing the number of trucks required to support our retail operations”.