DHL Supply Chain has successfully beaten off competition from five rivals to win a seven-year, £500m contract with the UK's largest buying group for independent retailers, Nisa-Today's.
DHL already handles Nisa Today's frozen and chilled operations at Stoke-on-Trent and Harlow, Essex, but the new contract, due to commence in April 2011, includes the buying group's ambient operation, which Bibby Distribution currently runs from Nisa's ambient warehouse at Scunthorpe, South Humberside.
Bibby was among a shortlist of six companies taking part in a 16-month tender process for the new, unified contract.
John Sharpe, MD of central distribution trading and logistics at Nisa-Today's, says the decision to use one supplier will "greatly enhance service provision to Nisa-Today's and its members".
He adds: "After a period of consideration, taking into account all elements of the tenders, we are delighted to award the future distribution contract for post 2011 to DHL Supply Chain."
Chris Sharp, MD, food retail for DHL Supply Chain, adds: "We have worked with Nisa-Today's for over 20 years and are hugely excited about the opportunity to extend our partnership by implementing its entire future supply chain strategy."
The contract announcement has been somewhat overshadowed though by the rejection of a takeover bid from Bibby Line Group for Nisa Today's.
As the parent of Bibby Distribution, Bibby Line Group's acquisition attempt has been interpreted by some transport observers as a last ditch move to retain its customer of more than 20 years.
However, Mark O'Bornick, director, research and analysis at transport analyst Analytiqa, disagrees: "There was a greater motivation to Bibby Line's bid for Nisa-Today's than the desire to hold onto its distribution contract. Long term, Bibby is keen to add Nisa's 5,000 shops to the 51% stake it already owns in Costcutter, which itself may be increased.
"However, now that the Nisa-Today's contract has been awarded to DHL, Bibby could withdraw Costcutter from the buying group from 2014."
Costcutter is Nisa Today's biggest member.
A spokesman for Bibby Distribution says the company will "continue to deliver a first class service to Nisa and its members" and adds that the news "does not change our strategy at all".
