TNB News Van

Double boost for delivery sector

17 September 2020 #TNB News #Van

Two more major players in the home delivery market have revealed their job creation and expansion plans.

First, independent parcel carrier Yodel revealed its plans for a long-term strategic investment in a new Northern ‘super-hub’ that will both secure and create jobs in the region.

And within days, delivery management company Whistl announced a raft of new customer wins that are driving growth in its UK and international parcels business.

Yodel’s plans will see it transition over the next five years away from its existing hub in Shaw, Oldham, to a new supersized facility.

The company is currently consulting employees, colleagues, union reps and local stakeholders as it seeks to identify a new site which is well-connected and provides room for sustained, long-term growth.

The move, it says, is a response to growing parcel volumes, triggered by a series of new client wins and the dramatic increase in consumer demand for online retail, which has been ‘turbo charged’ by the pandemic.

Mike Hancox, Chief Executive Officer of Yodel, commented, “As we look to Yodel’s long-term future, it is necessary to take strategic decisions which benefit the business, our people, clients and customers.

“That is why we are announcing plans for a new super hub in the North of England to take Yodel to the next phase of its growth journey. This represents an important upgrade to our current operations – creating more opportunities across the regions, whilst cementing Yodel’s position as the leading independent parcel carrier in the UK.”

Whistl meanwhile has also experienced unprecedented growth as ecommerce continues to expand and home deliveries have surged as the result of COVID 19.

It has added a number of major new clients including brands book retailers Monster Books, Goldstone Books and Alex the Fat Dawg, online pet suppliers National Veterinary Services and Itchpet, general mechandiser STC stores and Nottingham Rehab Services which provides mobility products for the elderly.

Between them the new clients use a wide range of Whistl’s international and tracked services.

Meanwhile, several long-term customers including Cotton Traders, Yorkshire Building Society have renewed contracts for Downstream Access Mail services including marketing and transactional mailings.

According to Whistl, the ecommerce boom is driving inbound parcels volumes, predominantly from China, and the company is expected to exceed four million items this year.

Nick Wells CEO Whistl said, “We are pleased with the strong growth we are experiencing in our international operations.  Our unique custom clearance product alongside real time tracking is proving an increasingly attractive and cost-effective product for international ecommerce customers.”

In July TNB reported how another of the industry’s big players, DPD, had massively scaled up its order for Mercedes-Benz trucks to cope with surging demand for home deliveries caused by the pandemic.

It had seen UK parcel volumes grow by 50% year-on-year since the beginning of March.

In addition to the purchase of more trucks, it also announced plans to invest £200 million on expanding its next-day parcel capacity, with half the cash going towards new vehicles.

Meanwhile, £60 million will be spent on 15 new regional depots – £10 million more than originally planned – and the remainder on technology.

DPD believes the investment will create 6,000 new jobs, 3,500 of them for HGV and delivery drivers.

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