Release Date:
Release ID: 4448

TIE RACK renews £4.3 million contract with DHL

* Warehouse operations in UK extended to 2012
* Hong Kong consolidation center opened in 2009 supports market expansion in Far East and Australia

Singapore, 14 December 2009: DHL Supply Chain, the worlds leading logistics services provider, has signed a contract worth 4.3 million (approx. 4.7 million Euros) with accessories and clothing retailer TIE RACK Trading Ltd, extending its partnership until 2012. The contract renews warehousing services for both the TIE RACK and Rolling Luggage brands operated from the multi-user Hams Hall location in the West Midlands.

DHLs specialist fashion unit will continue to run all international inbound freight and warehousing operations serving 197 TIE RACK stores and 40 Rolling Luggage outlets in the UK, Europe and the US. The contract also includes a new consolidation center based in Hong Kong and opened by DHL in March 2009 to facilitate a shorter and quicker supply chain to markets in the Far East and Australia. Through the new service, TIE RACK is able to ship products sourced in Asia direct to the Hong Kong warehouse where they are picked, packed and dispatched to over 50 stores and franchises across Australasia.

Lindsay Smetham, TIE RACKs Logistics Manager, says, We have been delighted with the performance of both the UK and the Hong Kong operations and the strength and effectiveness of our partnership with DHL. The Hams Hall facility provides flexible labor and storage services and the integration of DHLs warehouse Styleflow* system has improved the accuracy and speed of operations through the use of scan pick technology. DHL has also demonstrated an ability to adapt operations to support the strong growth and expansion of our Rolling Luggage network with solutions for increasing volumes and larger products.

DHL manages a full range of services, including inbound freight from suppliers in India and China, as well as cross-docking, pick and pack, dispatch and returns handling.
Jonathan Pilbro, Business Director, UK and Ireland, DHL Supply Chain, Fashion, adds, Were thrilled to be continuing our partnership with this global brand. TIE RACKs continued investment demonstrates the benefits of multi-user warehouse operations, not least with flexibility and economies of scale. This year, we were able to leverage DHLs global reach to extend our support beyond UK operations into an international supply chain solution through the opening of the Hong Kong consolidation center. This now presents a strong platform which supports growth into new markets in the Far East including new stores in China.

Phillip Chin, Global Head, International Supply Chain, DHL Global Forwarding, says, We are very delighted with the contract extension. At DHL, building long-term relationship with our customers has always been a key priority, and it is most rewarding when customers stay with us. Despite the volatile business environment, we are seeing increasing demand for supply chain in the global fashion industry. With companies looking to streamline their supply chains to better manage their product lifecycle and enhance speed-to-market of their products, we are confident in seeing sustained growth in this sector and will continue to develop solutions to fulfill their varied needs.
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