B&Q centralises distribution
Published: 09 June, 2010
LONDON: B&Q is to radically change its product distribution system taking warehousing in-house.
The company is pulling out of seven partner centres in Runcorn, Coventry, Chepstow, and Swindon run by DHL, Kuehne and Nagel and Wincanton. Instead, a £77m distribution centre will open in Swindon with expansion of B&Q's existing site in Worksop.
B&Q said the re-organisation followed a review of its distribution strategy. The retailer plans to open a new 74 000m2 distribution centre in Swindon, just north of Honda's factory.
The new regional distribution centre will handle high volume products for stores in the south, reducing transport miles, transport costs, and CO2 emissions, B&Q said in a statement.
The new distribution centre is expected to operational by January 2012.
The changes will lead to job losses among the third party companies. One of the biggest sites is DHL's distribution centre in Preston Brook, Runcorn, where up to 615 staff are affected.