Delivery firm ArrowXL has landed a contract with logistics giant DG International to provide warehousing and home delivery services.

The win provides a boost to ArrowXL, which saw profits plunge 70% last year to £862,000, hit by a major fire at its Worcester depot and a sluggish retail climate.

Under the terms of the deal with DG International, which ArrowXL describes as “long-term”, the Wigan-based delivery firm will provide warehouse space for two of DG International’s retail clients who specialise in large indoor and outdoor furniture, as well as processing and fulfilling home deliveries.

As part of the contract, ArrowXL will also provide consumers with its Platinum service, which includes a diary booking service, installation and assembly of furniture and removal of packaging.

Around 30 DG International’s containers will arrive at ArrowXL’s Wigan facility each week, with the company’s two-person crews expected to fulfil around 250 weekly deliveries.

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The contract win closely follows the completion of work on ArrowXL’s £1.7m high bay pallet racking system at its warehouse in Wigan, which doubled the capacity.

The 15-metre-high racking incorporates 17,000 pallet spaces and features upgraded flooring, state-of-the-art lighting installations and sprinkler systems for fire prevention.

Reid Fairbairn, DG International business manager, said: “We have been massively impressed with ArrowXL and how quickly they responded to our needs with a range of comprehensive solutions. By launching this partnership with ArrowXL, we know we are in safe hands, and therefore our team can concentrate on growing our business.”

Adam Jones, ArrowXL sales director, said: “By offering both high specification warehousing space and award-winning delivery products, we are supporting retailers, manufacturers and logistics companies with tailored solutions that guarantee exceptional service levels and value for money.”

DG International handles in excess of 25,000 consignments each year with partners in China, India, the Middle East, USA, Japan, Australia and South Africa.

The company also handles more than 12,000 tons of export airfreight and 8,000 tons of import airfreight to over 120 cities around the world every year.

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