Logistics Manager Magazine https://www.logisticsmanager.com Pan-sector news, insight and analysis for logistics practitioners and supply chain strategists Fri, 19 Jul 2019 15:48:14 +0000 en-GB hourly 1 https://wordpress.org/?v=5.2.2 Operating profit falls £75m at DHL Supply Chain https://www.logisticsmanager.com/operating-profit-falls-75m-at-dhl-supply-chain/ https://www.logisticsmanager.com/operating-profit-falls-75m-at-dhl-supply-chain/#respond Fri, 19 Jul 2019 07:55:58 +0000 https://www.logisticsmanager.com/?p=38242 Operating profit at DHL Supply Chain fell to £906,000 for the year to 31st December 2018 – down from £75.7 million the year before. The company put the decline down to “a number of one-off items in 2018, including issues with the start-up of a new service to a restaurant chain, that had a significant […]

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Operating profit at DHL Supply Chain fell to £906,000 for the year to 31st December 2018 – down from £75.7 million the year before.

The company put the decline down to “a number of one-off items in 2018, including issues with the start-up of a new service to a restaurant chain, that had a significant impact on profit for the year” , in its results for the year.

However, despite the well publicised problems with the KFC contract, it said that the underlying business performance was robust with new business, transfers and renewals off-setting the effect of any lost business resulting in turnover growth of four per cent.

Turnover for the year rose from £3.15 billion in 2017, to £3.27bn last year. Interest receivable meant that pre-tax profit for the year was £3.9 million. This was down from £78.9 million the year before.

DHL implements digital twin warehouse for Tetra Pak

E-commerce strategies are lacking, says DHL

DHL sale in China funds UK restructuring

DHL supply chain chief steps down

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ASOS warns that warehouse transition problems will hit profits https://www.logisticsmanager.com/asos-warns-that-warehouse-transition-problems-will-hit-profits/ https://www.logisticsmanager.com/asos-warns-that-warehouse-transition-problems-will-hit-profits/#respond Thu, 18 Jul 2019 12:10:44 +0000 https://www.logisticsmanager.com/?p=38221 ASOS has warned that higher warehouse transition costs combined with lower sales will impact pre-tax profit, which is now expected to be in the range £30-35 million for the year. In a trading statement for the four months to 30th June, the online retailer said growth in the US and EU was lower than anticipated, […]

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ASOS has warned that higher warehouse transition costs combined with lower sales will impact pre-tax profit, which is now expected to be in the range £30-35 million for the year.

In a trading statement for the four months to 30th June, the online retailer said growth in the US and EU was lower than anticipated, with sales impacted by operational challenges from on-going warehouse transformation programmes in Berlin and Atlanta.

“Execution of this programme is progressing, however the speed of ramp up in our Euro Hub automation and stock build within our US Hub has been behind our ambitious expectations. This has restricted product availability and range for our customers in these territories and we have seen a corresponding impact on sales as well as additional costs in support of transition. As a result, while visits growth across the group has shown positive momentum, sales have been held back by availability where we have seen operational challenges.”

EU sales grew five per cent as a result of weaker stock availability than planned “reflecting the challenge of embedding new automation software in our Euro Hub. While installation of the equipment was completed in line with plan, we have found challenges in ramp up as we increased the volume of stock being processed through the systems.

“Challenges with the interaction between our automation and warehouse software meant the expected efficiencies have been delayed and this has correspondingly impacted availability. As a result, order growth of 11 per cent lagged visits growth of 19 per cent. Sales were further impacted by the ASP mix of available product.”

Sales growth in the US, at 12 per cent, was held back by slower than planned build of branded stock in the Atlanta warehouse with orders and ABV affected.

“Third party brands providing product to the US for the first time proved slower to resolve US specific compliance issues than we had anticipated and we have not yet received the width of range from some of our more established brand partners. ASOS Design, which was not impacted by these issues, grew at a pleasing 26 per cent.”

Total group sales for the period were up 12 per cent to £919.8 million driven by a strong performance by the Barnsley distribution centre which serves the UK and RoW regions.

ASOS has revised its guidance for the year saying retail gross margin would be down 250bps, while pre-tax profit would be £30-35m after c.£47m transition costs (previously c.£35m) and c.£3.5m restructuring costs.

Chief executive Nick Beighton said: “We are clear on the root causes of the operational challenges we have had, are making progress on resolving them, and now expect to complete these projects by the end of September. Despite these short-term challenges, the move to a multi-site logistics infrastructure will enable us to offer customers across the world our market leading proposition, facilitate our future growth, as well as leading to longer-term efficiency benefits.”

Consumers back ASOS returns policy change

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Big Yellow promotes urban logistics site https://www.logisticsmanager.com/big-yellow-promotes-urban-logistics-site/ https://www.logisticsmanager.com/big-yellow-promotes-urban-logistics-site/#respond Thu, 18 Jul 2019 11:22:19 +0000 https://www.logisticsmanager.com/?p=38239 Self storage company Big Yellow has acquired a 6.4-acre site in Harrow, North West London for £20 million advised by Colliers International. The site will be developed with a new self-storage and business centre together with a 112,000 sq ft multi-unit industrial estate. Big Yellow said: “The land has the benefit of being within a […]

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Self storage company Big Yellow has acquired a 6.4-acre site in Harrow, North West London for £20 million advised by Colliers International.

The site will be developed with a new self-storage and business centre together with a 112,000 sq ft multi-unit industrial estate.

Big Yellow said: “The land has the benefit of being within a consented master plan and Big Yellow will therefore make a reserved matters planning application for the proposed development very shortly.”

Akhtar Alibhai, director at Colliers International, said: “The urban logistics market is currently going through an interesting time – there is a growing imbalance between supply and demand in the sector, while the ecommerce market continues to grow.

“This new site in Harrow also shows Big Yellow’s continued commitment to expanding their portfolio within London.”

Ross Ray, acquisition surveyor – Big Yellow Group, said “This is an exciting time for Big Yellow acquiring a significant development site within a rapidly growing London borough”

“London has experienced significant change within the last 10 years with industrial land diminishing at an alarming rate. Big Yellow stores have increasingly become a solution for the business needs of both start-ups and SMEs.”

“We look forward to working with Barratt in developing both the Big Yellow, and industrial scheme, in this urban location”.

 

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Royal Mail rolls out 190 electric vans https://www.logisticsmanager.com/royal-mail-rolls-out-190-electric-vans/ https://www.logisticsmanager.com/royal-mail-rolls-out-190-electric-vans/#respond Thu, 18 Jul 2019 11:20:30 +0000 https://www.logisticsmanager.com/?p=38236 Royal Mail is rolling out 190 electric vans in London and the South East to add to the 100 that it already operates in the UK. The new vans have a green livery rather than the traditional red. The mix of Mercedes-Benz eVito and Peugeot Partner vans are charged via wall or floor mounted charging […]

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Royal Mail is rolling out 190 electric vans in London and the South East to add to the 100 that it already operates in the UK.

The new vans have a green livery rather than the traditional red.

The mix of Mercedes-Benz eVito and Peugeot Partner vans are charged via wall or floor mounted charging posts.

Load capacities ranging from 3.7 cu m to 6.3 cu m, the vehicles will operate as part of usual delivery routes.

They will be launched during July across selected locations in London and the South East including Whitechapel, Islington, Bexleyheath, Dartford and Orpington in Kent.

This latest move is part of Royal Mail’s involvement in the Optimise Prime project, the electric vehicle demonstrator led by Hitachi Vantara and UK Power Networks. The project brings together power, technology, fleet and transport companies – including SSEN, Uber and Centrica – to test and implement the best approaches to the EV rollout for commercial enterprises.

Royal Mail fleet director Paul Gatti said: “This trial is part of a programme of initiatives across our business that will ensure we can continue to deliver letters and parcels safely, efficiently and in the most environmentally-friendly way possible.”

The company said it has reduced its overall carbon emissions by 29 per cent since 2004, while its “Feet on the Street” network of 90,000 postmen and women plays a key role in keeping its carbon emissions low.

 

Royal Mail plans 1,400 parcel post-boxes

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Tuffnells expands international service https://www.logisticsmanager.com/tuffnells-expands-international-service/ https://www.logisticsmanager.com/tuffnells-expands-international-service/#respond Thu, 18 Jul 2019 11:18:26 +0000 https://www.logisticsmanager.com/?p=38232 Tuffnells is expanding its international parcel delivery service with a simplified IT-enabled international tariff covering 167 countries. Through the new service, it will be able to deliver items up to a maximum length of 2.7m, maximum girth of 3.3m and maximum weight of 68 kg per item or total of 299kg per consignment. Chief executive […]

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Tuffnells is expanding its international parcel delivery service with a simplified IT-enabled international tariff covering 167 countries.

Through the new service, it will be able to deliver items up to a maximum length of 2.7m, maximum girth of 3.3m and maximum weight of 68 kg per item or total of 299kg per consignment.

Chief executive Peter Birks said: “The great thing about our new service is that it means all our customers’ parcels, both UK and international, can be picked up by our drivers at the same time, making it even easier for our customers.”

 

More Ategos for Tuffnells

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More big parcels for Hermes https://www.logisticsmanager.com/more-big-parcels-for-hermes/ https://www.logisticsmanager.com/more-big-parcels-for-hermes/#respond Thu, 18 Jul 2019 11:15:16 +0000 https://www.logisticsmanager.com/?p=38230 Hermes is to increase its ability to collect and deliver large items (over 18 kilos), in response to demand from retailers. As a result, the company is actively seeking independent van operators to join the firm as service partners in a push to increase the volume of larger items by 20 per cent. The company […]

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Hermes is to increase its ability to collect and deliver large items (over 18 kilos), in response to demand from retailers.

As a result, the company is actively seeking independent van operators to join the firm as service partners in a push to increase the volume of larger items by 20 per cent.

The company uses a van network to deliver larger goods, and this is separate from its small package network.

Carl Lyon, operations director delivery experience, said: “Getting the right service partners on board is key for us as they must be committed to delivering an exceptional service, while ensuring that we continue to meet the ULEZ emissions standards as they are rolled out across the UK’s major cities.”

Hermes to replace barcode scanners with smartphones

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Group plans to boost diversity in shipping https://www.logisticsmanager.com/group-plans-to-boost-diversity-in-shipping/ https://www.logisticsmanager.com/group-plans-to-boost-diversity-in-shipping/#respond Thu, 18 Jul 2019 11:13:48 +0000 https://www.logisticsmanager.com/?p=38228 The Diversity Study Group is to take a barometer of all aspects of diversity across the shipping sector and establish centre of excellence to improve diversity via a survey to be available in November. The study is being supported by a number of leading companies. It will be conducted through the autumn and the results […]

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The Diversity Study Group is to take a barometer of all aspects of diversity across the shipping sector and establish centre of excellence to improve diversity via a survey to be available in November.

The study is being supported by a number of leading companies. It will be conducted through the autumn and the results will be available in November.

The newly formed DSG is dedicated to supporting diversity and inclusion within in shipping, including gender, ethnicity, age and regional differentiation. Founder members include Ardmore Shipping and Peninsula Petroleum.

Membership will encourage members to measure progress against industry standards, as well as supporting improvements in their own policies and practices.

“Armed with robust data and insights into diversity across a range of criteria, we can then benchmark progress and advise on the right actions to drive meaningful change,” said co-founder Heidi Heseltine.

“Companies that draw upon the full range of talents available to them by embracing diverse, inclusive workplaces are shown to outperform their peers and shipping is no different to this. Our goal is to not only provide a regular barometer of where diversity in shipping stands, but also to champion diversity and to provide expert support and resources to our member organisations.”

The deadline for participation in this year’s study is 25 September 2019.

 

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HEMA invests in AI to transform supply chain https://www.logisticsmanager.com/hema-invests-in-ai-to-transform-supply-chain/ https://www.logisticsmanager.com/hema-invests-in-ai-to-transform-supply-chain/#respond Thu, 18 Jul 2019 11:07:53 +0000 https://www.logisticsmanager.com/?p=38224 European retailer HEMA has invested in artificial intelligence and machine learning technology from JDA and Blue Yonder to transform its retail supply chain. It will use JDA Luminate Demand Edge, a cognitive SaaS solution that uses machine-learning algorithms to develop accurate demand forecasts, and JDA Fulfilment which position the right inventory in the right distribution […]

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European retailer HEMA has invested in artificial intelligence and machine learning technology from JDA and Blue Yonder to transform its retail supply chain.

It will use JDA Luminate Demand Edge, a cognitive SaaS solution that uses machine-learning algorithms to develop accurate demand forecasts, and JDA Fulfilment which position the right inventory in the right distribution centres and stores at the right time using real-world demand signals.

The technologies will help the retailer make more informed, risk-aware business decisions and expand profits and increase product availability and reduce inventory throughout its supply chain to support its sustainability goals.

JDA will also help the retailer to automate forecasts that self-adjust and learn while considering influencing factors such as weather, promotions, holidays, day of week/month/year etc. It will help to calculate a probabilistic demand forecast which includes business impact and risk, improve the initial buying process and improve vendor collaboration, generate orders that maximise customer service with minimal inventory, and provide supply chain visibility with accurate projections of inventory, purchases, warehouse flow and transport needs.

Kirkwood appointed BluJay CEO

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New chief executive for Yodel https://www.logisticsmanager.com/new-chief-executive-for-yodel/ https://www.logisticsmanager.com/new-chief-executive-for-yodel/#respond Thu, 18 Jul 2019 10:38:35 +0000 https://www.logisticsmanager.com/?p=38217 Yodel, has appointed Mike Hancox to replace Andrew Peeler as chief executive. Hancox, who takes over on 19th September, has for the past two years, has acted as non-executive director of delivery software company Sorted as well as non-executive chairman at retail services company Sigma. He was chief executive of Otto Group in the UK […]

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Yodel, has appointed Mike Hancox to replace Andrew Peeler as chief executive.


Hancox, who takes over on 19th September, has for the past two years, has acted as non-executive director of delivery software company Sorted as well as non-executive chairman at retail services company Sigma.
He was chief executive of Otto Group in the UK between 2005 and 2008 and before that was chief executive of Shop Direct.
He said: “I am delighted to be joining Yodel at an exciting time in the company’s history. The company has a strong market position, supportive shareholders and quality people throughout the business.”

 

Yodel loss increases to £111.8m

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Profit slips at Panalpina https://www.logisticsmanager.com/profit-slips-at-panalpina/ https://www.logisticsmanager.com/profit-slips-at-panalpina/#respond Thu, 18 Jul 2019 10:36:44 +0000 https://www.logisticsmanager.com/?p=38214 Panalpina’s operating profit (EBIT) slipped from CHF 54.7 million to CHF 52.1m in the first half of 2019, despite an a small increase in revenue to CHF 2.96 billion. The company, which is in the process of being taken over by DSV. Chief executive Stefan Karlen, said: “After it was announced that Panalpina and DSV […]

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Panalpina’s operating profit (EBIT) slipped from CHF 54.7 million to CHF 52.1m in the first half of 2019, despite an a small increase in revenue to CHF 2.96 billion.

The company, which is in the process of being taken over by DSV. Chief executive Stefan Karlen, said: “After it was announced that Panalpina and DSV would join forces, our competitors went more aggressively after our business in the second quarter, but we stood our ground.

“The decrease in gross profit was chiefly the result of lower margins in air freight and lower volumes from the automotive sector, which shifted into reverse gear. Nonetheless, group EBIT and profit almost reached last year’s levels. Given these circumstances, our stable half-year results are a respectable achievement.”

Board changes planned for Panalpina

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