Release Date:
Release ID: 4755

DHL clinches multi-billion won contract with Diageo in Korea to provide Integrated Logistics Services

Singapore, 7 June 2010: DHL, the world’s largest logistics company, today announced it has clinched a multi-billion won contract in Korea with leading premium drinks maker Diageo to manage the company’s stock of premium alcohol in South Korea. Under the contract, DHL Supply Chain will provide a full suite of integrated supply chain services – warehousing and distribution – for the world’s leading premium drinks company, reaching out to over 1,500 wholesalers nationwide.

Located in Incheon, the facility operated by DHL holds Diageo’s inventory of premium wine and spirits for the Korean market. “We are delighted with the appointment by Diageo and look forward to our partnership to deliver world-class integrated warehousing services. With a well-established hub and spoke network, DHL is well placed to provide complete end-to-end local distribution services,” said JK Hur, Country Manager, DHL Supply Chain, Korea.

With the appointment, DHL is working with Diageo to optimize its existing operations, which will result in higher efficiency and direct cost savings. This will be done mainly through the implementation of DHL’s First Choice continuous improvement program at the site.

“Korea is a key market for Diageo and the team evaluated a number of logistics solutions providers before deciding on this appointment. With DHL’s partnership and the enhancements in our supply chain, we hope to improve our customer satisfaction, increasing the frequency in which we supplement stocks for our customers, and responding swiftly when they run promotions,” said Jaehyun Seo, Supply Chain Director, Diageo Korea.

Diageo is the world's leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, wines and beer categories. These brands include Johnnie Walker, Guinness, Smirnoff, J&B, Baileys, Cuervo, Tanqueray, Captain Morgan, Crown Royal, Beaulieu Vineyard and Sterling Vineyards wines.
59 Piccadilly Manchester M1 2AQ
Telephone: +44 (0)161 408 0542
Fax: +44 (0)870 432 1732

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