DHL announces strategic partnership with Compass Group to create a new food services provider
DHL Supply Chain has signed a ground-breaking strategic partnership with Compass Group UK and Ireland, in order to super-charge the growth of its food service offering and create a major new disruptor in the market. Working collaboratively, DHL and Compass Group will provide high quality catering services to customers in the public sector, airline, rail and facilities management industries.
DHL will deliver its world-leading end-to-end supply chain solutions, and will also deploy its expertise to oversee product flows and waste management. It will also bring its sector expertise in final mile operations, lean techniques and business analytics to create a platform for continuous improvement.
Compass Group will leverage its strong network of supplier relationships and world class foodservices technology solutions to drive the creation, sourcing, procurement and delivery of innovative and cost-effective menus.
Together, the partnership will offer customers greater breadth of choice in ingredients, whilst providing end-to-end transparency of their cost base, allowing greater control of their investment.
Andrew Barry, Managing Director of Business and Industry at Compass said: “This partnership allows us to stay true to our core focus and expertise of food service whilst building on DHL’s strong existing customer base in the Passenger Gateways sector. We will use our respective key strengths to bring a new level of service and innovation to current and future clients in this market.”
Paul Richardson, MD, Specialist Services at DHL Supply Chain added: “Compass Group is a world leading foodservice provider, offering global scale coupled with fine dining expertise. Together we will be able to enhance our proposition as a foodservice provider, offering innovative solutions that provide our customers with even greater choice, cost transparency and quality. We are looking forward to growing in this sector with Compass at our side.”
Over the past year DHL has expanded its foodservice offering and supply chain solutions in the UK, winning contracts with major airline companies and successfully diversifying into rail.
EU and US agree end to Airbus-Boeing supply chain tariffs
The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic.
Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years.
It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC.
The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn.
In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products.
Boeing-Airbus dispute by the numbers
- The dispute began in 2004
- Tariffs suspended for 5 years
- $11.5bn worth of goods affected by tariffs
- $3.3bn in duties paid by businesses to date
- 15% levy on aircraft and 25% on non-aircraft goods suspended
Both sides welcome end to tariffs
European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.
“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.
Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”.
The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."
This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.
Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”