Why Leidos Is Partnering With DHL Supply Chain

To bid on the UK Ministry of Defence's (MOD) Future Defence Support Services (FDSS) programme, maritime technology company Leidos is securing logistics solutions from DHL Supply Chain, a subsidiary of DHL.

The strategic alliance has been formed to bring integrated, resilient and scalable logistics capabilities aligned to the UK Ministry of Defence’s (MOD) Future Defence Support Services (FDSS) programme.

Details of the alliance

The Ministry of Defence's Future Defence Support Services (FDSS) framework, worth £8-18bn over a 10-year term with a 2-year extension option, will succeed the Logistic Commodities and Services Transformation (LCST) contract, which expires in 2028.

Where LCST focused chiefly on peacetime efficiency and cost savings through extensive outsourcing, FDSS has been designed with military resilience in mind, enabling the supply chain to scale up for wartime operations.

The new framework consolidates several key inventory-related software and supply chain contracts, including ones that have previously worked alongside LCST, into a single, unified enterprise programme.

Through this alliance, Leidos is positioning itself to extend its logistics presence into the next contract cycle.

Through this, Leidos will integrate its defence infrastructure with DHL’s global logistics expertise and operational capacity to meet the MOD’s future defence logistics needs.

“Leidos and DHL bring together proven delivery expertise and complementary strengths to transform how Defence logistics is delivered,” says Adam Clarke, Chief Executive Officer of Leidos UK & Europe.

“Through this alliance, we are aligning capability, data and decision-making to enable faster, more resilient and more precise support to the UK's Armed Forces.”

The alliance between Leidos and DHL will also harness advanced technologies, including artificial intelligence, data analytics and automation, to optimise logistics operations and improve visibility across demand, inventory and assets.

This is designed to support more informed decision-making and boost operational effectiveness.

Currently, the Logistics Commodities & Services Transformation (LCST) programme for the UK Ministry of Defence (MOD) is managed by Leidos.

This initiative delivers critical storage and distribution services for the MOD's materiel, encompassing a worldwide freight network as well as the inventory management and procurement of 70,000 commodity NATO Stock Numbers (NSNs).

Martin Willmor, Chief Executive Officer, DHL Supply Chain UK&I, said: “The FDSS programme presents an opportunity to modernise support of UK Defence at a time of increasing operational complexity.

“DHL brings global logistics scale, advanced digital capabilities and proven operational leadership, and by working in partnership with Leidos, we aim to enable a more integrated, resilient and responsive supply chain that helps the MOD maximise its strategic advantage.”

DHL expertise beyond defence

The alliance with Leidos builds on DHL's experience managing some of the world's most demanding logistics operations across multiple industries.

Beyond defence, the company recently expanded its partnership with the FIA World Endurance Championship (FIA WEC), where it serves as the official logistics provider for race teams competing across Europe, Asia, the Middle East and the Americas.

As part of the multi-year agreement, DHL coordinates the transportation of race cars, spare parts, garage infrastructure, broadcast equipment and alternative fuels, ensuring every shipment arrives on schedule despite tight race calendars and intercontinental travel. 

The championship's complex logistics network also reflects DHL's growing emphasis on sustainable operations, combining ocean and air freight where appropriate to reduce emissions while maintaining the speed and reliability required for elite motorsport.