U.K. furniture retailer picks DHL to manage new DC

U.K. furniture retailer picks DHL to manage new DC

U.K. furniture retailer MFI has awarded a five-year contract to DHL Exel Supply Chain to manage its new 750,000-square-meter distribution center in Thorne, South Yorkshire.

   MFI’s new '60 million ($122.3 million) DC was official opened on Friday by Cabinet Office Minister Ed Miliband.

   Under terms of the agreement, DHL will invest more than '10 million ($20.4 million) of its own capital to improve the information technology system, which supports the picking and packing process in the warehouse, and also to develop additional warehouse space as MFI’s product range increases.

   The 200-strong retail store business is undergoing a major relaunch after its was acquired for '1 a year ago by venture capitalists Merchant Equity Partners.

   “We are naturally very pleased to be working with DHL during a very demanding and exciting period in our history. With DHL’s support, we plan to reassert the company’s position in its traditional retail markets,” said Chris Pavlosky, MFI’s chief operating officer.

   Matthew Phelps, DHL Exel Supply Chain business director, said of the deal: “This has been one of the most challenging projects that DHL has ever been involved in. We have already completed a '13.2 million ($27 million) fit-out of the distribution center and between now and February 2008, we will create 330 new specialist warehouse and administration positions.

   “We are ideally placed to support MFI in delivering great customer service, by ensuring customers receive their products direct to their door, within a guaranteed period of time.”