Pepco has expanded its partnership with DHL Supply Chain to enhance distribution reliability and improve store supply across its European network.
Under the extended agreement, DHL Supply Chain will manage operations at five of Pepco’s distribution centers in Central and Eastern Europe, in Sosnowiec and Rawa Mazowiecka in Poland, Gyal in Hungary, and Bucharest in Romania.
The move builds on an existing collaboration between the two companies that began in 2019 and has since expanded across multiple markets. The latest phase includes DHL Supply Chain taking over operations at the Bucharest facility, marking its entry into Romania’s contract logistics sector.
At the Bucharest site, DHL Supply Chain will provide end-to-end logistics services, including warehousing, inbound and outbound picking, loading and value-added services. The facility supports store deliveries in Romania, Bulgaria and Greece.
The expanded partnership is intended to improve delivery speed, product availability and overall network performance as Pepco continues to grow its store footprint. Three of the five distribution centers are highly automated, supporting higher throughput, improved picking accuracy and more consistent processing times.
The multi-site setup is also designed to strengthen business continuity, enabling operations to be maintained during disruptions and ensuring consistent supply to stores.
DHL Supply Chain now manages around 290,000m2 of warehouse space for Pepco and has integrated more than 1,500 employees into its operations. The network supports over 4,000 Pepco stores across Europe.
Rainer Haag, CEO Europe at DHL Supply Chain, said, “We are proud to manage five of Pepco’s distribution centers across the region, enabling them to respond swiftly to consumer demand and navigate unforeseen disruptions – ensuring reliable delivery to retail stores even when conditions change.”
Javier Rubio, global sourcing and supply chain director at Pepco, said the expanded partnership would support a more standardized operating model and improve scalability: “Expanding our partnership with DHL Supply Chain supports a more standardized operating model across Europe and strengthens our ability to scale, improve productivity and protect service levels for stores.”
Stephan Borchert, CEO of Pepco Group, added that the agreement would support the company’s growth strategy, while Filip Budík, CEO Central and Eastern Europe at DHL Supply Chain, described the expansion as “a strong vote of confidence” in the company’s services.
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