DHL develops supply chain for Castrol NEXCEL

DHL will develop the supply chain for Castrol’s new cellular oil system technology, NEXCEL, together with the BP subsidiary. DHL is responsible for connecting the company with the automotive industry and its aftersales market and will develop a global supply chain strategy for NEXCEL. The new technology is intended to replace conventional oil change by simplifying the process and facilitating the collection and recycling of used engine oil.

“Based on our established supply chain expertise, we aim to provide high service delivery capability, balanced with cost and working capital optimisation to support NEXCEL’s rollout,” explains Steve Harley, President Energy Sector, DHL Customer Solutions & Innovation. “With this new agreement, we are building on the existing relationship with BP and we are proud that our expertise will support the launch of a sustainable, fair and potentially profitable service for both consumers and businesses within the automotive sector.”

DHL Supply Chain’s Lead Logistics Provider (LLP) team in the United Kingdom will develop the supply chain ecosystem for NEXCEL, connecting manufacturers, third-party logistics providers, NEXCEL customers and the NEXCEL business systems to support the launch and sell-off of the new product. The team will develop a blueprint of a proposed supply chain as well as a supporting technology platform, which is going to outline potential scenarios revolving around OEMs, geographies and predicted NEXCEL growth. The team will also incorporate the expertise of other DHL business units, such as DHL Global Forwarding and DHL Express, to ensure the delivery of an optimal end-to-end global solution.

“DHL’s impressive track record in designing, implementing and operating automotive supply chains on a global level combined with our long-term relationship makes them a natural choice. Both DHL and BP are actively engaged in the development of environmentally friendly and forward-looking solutions and thus are a perfect fit,” stated Mark Atkinson, Castrol’s Global Logistics Category Manager.

DHL already provides a wide range of logistics services to BP in their upstream and downstream businesses. These include international logistics in Angola, Egypt, Iraq, the US and Azerbaijan, as well as fuel transportation and retail fulfilment services in Great Britain.

Source: Deutsche Post DHL Group