Nisa-Today’s places its distribution contract

Nisa-Today’s has announced that it has awarded the £500m contract to manage its distribution requirements to DHL Supply Chain, just days after it rejected a “final” takeover offer from DHL’s rival Bibby.

The contract, which will commence from April 2011 and run for seven years, will see DHL handle all of Nisa-Today’s central distribution logistics to its national members.

As part of a new composite distribution model developed for Nisa-Today’s, DHL will manage ambient, frozen and chilled products through the group’s three warehouses to optimise flow of product across the supply chain network.

This will also support smaller and more frequent deliveries to be made to all stores, which will allow members greater flexibility in ordering and more effective control of stock levels.

By consolidating deliveries and through better utilisation of the network DHL aims to not only reduce transport mileage but also provide a significant saving in operational costs.

John Sharpe, managing director central distribution trading and logistics at Nisa-Today’s, said: “This is a positive step to secure and enhance Nisa-Today’s supply chain and its workforce, and demonstrates our commitment to independent retailers and wholesalers.”

Days earlier the board of Nisa-Today’s (Holdings) rejected a second increased bid by Bibby Line Group to buy the company.

The board said the second approach represented a significant improvement but it was not in the best interests of members.

It said the takeover would have resulted in an end to its mutual status, which many members value, that the bid was still an undervaluation, and that the headline offer of £133m overstated the real price.

Bibby said the approach was its final offer. Managing director Sir Michael Bibby commented: “Naturally Bibby Retail Services is disappointed with the Nisa board’s rejection of this deal.” He noted details of the offer had been put on the group’s website, but said members had not been consulted on the decision.”

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