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Inside the warehouse with retailer Sisi & Seb

Posted on by Keith McKinley

Carley Bassett, managing director of luxury children’s brand Sisi & Seb, shares how her team managed demand during the pandemic and the benefits of outsourcing fulfilment to Diamond Logistics.

What trends are you seeing in the luxury children’s products market? How do you expect the market to change in the next few years?

People really love unisex products and items that have longevity so they often buy gender neutral clothing. I find parents want items that will last, are different and good quality, but at a fair price. Now more than ever sustainability is key and I think (and hope) that this will continue in the next few years.

How have you overcome the challenges of Brexit and the ongoing COVID-19 pandemic? 

I am definitely still dealing with them, a lot of stress, worry and wine in equal measures to get through both! 2020 was a tough and unpredictable year, we saw a huge demand for online shopping. It was difficult to plan 2021 off the back of that.

Has the pandemic changed how you operate? If so, how?

I was lucky to have moved into fulfilment prior to the pandemic, therefore still able to dispatch orders. We saw huge demand and had to move quickly to put new systems in place and to recruit a bigger team. The first lockdown was crazy. Thankfully I had Diamond, but I was doing the marketing, accounting, social media and customer service by myself. We have grown quickly and now have two members of staff, an amazing warehouse and a fantastic accountant for which I am so grateful.

We know how important packaging and the un-boxing experience is in 2021. How has Diamond supported you in your un-boxing ambitions?

Diamond really understands my desire to have eco-friendly packaging and where we can, no plastic. Our packaging is all cardboard/paper and recyclable. We also gift wrap, as we realised people weren’t able to do so themselves during the pandemic.

How has Diamond Logistics supported your growth and the safe delivery of your products? 

They have been amazing quite frankly. It is such a fast-paced environment with e-commerce but Mandy Watkins-Smith, managing director at Diamond Logistics Bristol, and her team are always so fast to respond to queries and process customer returns quickly and efficiently. I have been able to put faith in them and grow the areas of the business that I need to. I am able to rest in the knowledge they are dealing with the logistics efficiently and with utmost care and attention.

What should retailers think about when choosing a fulfilment partner? What have been the benefits of partnering with Diamond?

As with anything you have to get along with the team and make sure you’re a good fit. Customer experience is key, as is making sure orders are processed in a timely manner. We are all human and mistakes can happen so you have to work with a fulfilment partner which is transparent and vice versa. I really feel like Diamond has helped me grow my business in the time I have been with them, and it’s been a leap in the right direction for us.

Reflecting on the last year, what advice would you give to an emerging retailer of children’s products?

First and foremost make sure you prioritise a professional quality service over a lower price (particularly with accountants and fulfilment centres). Transparency is key in all that you do, whether that is with your customers or the professionals you partner with. eCommerce is super hard, competitive (particularly in this field) and ever changing so keep going and make sure you give yourself the credit you deserve. Sometimes it feels like you haven’t achieved anything but every little step is a move forward!

Delamode secures new fashion clients

Posted on by David Priestman

Xpediator, a leading provider of freight and logistics management services across the UK and Central and Eastern Europe, has announced that its fashion & lifestyle division, Delamode International Logistics, has secured two new clients in the luxury and boutique sectors of the fashion market.

The clients are independent fashion retailer Kymina, a UK-based manufacturer of sustainable and environment-friendly swimwear and luxury brand Moose Knuckles Canada, known for its stylish take on functional outerwear, sportswear and accessories, whose products are sold in Selfridges, Flannels and Harrods.

Delamode is well positioned to fulfil the clients’ logistical needs with a dedicated fashion facility in London. For Kymina, Delamode is responsible for the storage of the clients’ swimwear range, picking and packing of orders and distribution of deliveries throughout the UK and globally. Similarly, upon arrival at Delamode’s fashion facility, Moose Knuckles’ garments are processed and prepared for dispatch to wholesalers, retailers and individual clients. In addition, as Moose Knuckles is a Canadian-based business, Delamode Anglia (freight forwarding division) is also supporting the business with regard to sea container import services and customs clearance formalities.

Earlier in the year, Xpediator announced that the UK logistics division – Delamode Plc (Logistics Division – Braintree, Essex), EMT Logistics (London) and Import Services Limited (Southampton) – was being integrated and rebranded to operate as Delamode International Logistics. As a result of the successful integration, the London fashion facility has been awarded bonded status as an extension of the certification granted to the Southampton warehousing facility. Bonded warehouses have the ability to defer import tariffs on clients’ goods until the items or distributed or sold, providing more financial headroom and time to choose when and where their products should be distributed.

Luke Croome, COO of the Fashion & Retail Division at Xpediator, said: “We are very excited to be working with these two significant fashion labels, who are both situated in the luxury end of the market which we are shifting our focus towards. The Group’s move towards integrating the division under one brand is already showing clear benefits, with the bonded status of our Beckton warehouse providing exciting opportunities for existing and potential clients as a true one stop fashion facility for all warehousing and logistical services.”

 

XPO provides omnichannel logistics to Electrolux France

Posted on by Keith McKinley

XPO Logistics, a leading global provider of transportation and logistics solutions, has been awarded a multi-year contract by Electrolux Logistics SAS to manage its logistics operations in France. The agreement marks the start of Electrolux’s outsourcing strategy for distribution to its trade customers in France, after previously managing these channels in-house from its distribution centre in Marly-la-Ville (Val-d’Oise).

XPO is managing the logistics activities at the site using technology-enabled solutions integrated on its proprietary warehouse management platform. Approximately 90% of the inventory is comprised of refrigerators, washing machines and other large products, with the remainder being smaller appliances and parts. All logistics processes — receipt of goods, storage, tracking and order preparation — have been customized by XPO to deliver greater efficiencies for Electrolux.

The two companies will also partner on Electrolux’s upcoming launch of its direct-to-consumer e-commerce site this year. XPO will provide this additional fulfilment from the same 58,000sq m DC in Marly-la-Ville, which is staffed in part by 46 colleagues who transferred from Electrolux Logistics SAS.

Pierre Perron, president and chief executive officer of Electrolux France, said: “We’re confident that XPO has the expertise, scale and technology to support our growth ambitions and make our logistics a strength for our customers and our e-commerce channel. This new collaboration is at the heart of our strategy.”

Malcolm Wilson, chief executive officer of XPO Logistics Europe, said: “We’re proud that Electrolux, one of the world’s largest appliance manufacturers, has entrusted its outsourced logistics in France to XPO. Our team worked with our new colleagues at the distribution centre in Marly-la-Ville to manage a seamless transition.”

XPO’s leading capabilities in e-commerce and omnichannel logistics, including the largest outsourced e-commerce fulfilment platform in Europe, are expected to begin operating as GXO when XPO’s plan to spin off its global logistics segment in the third quarter is complete. Completion of the spin-off is subject to various conditions, and there can be no assurance that the transaction will occur or, if it does occur, of its terms or timing.

Johnston Logistics unveils new website

Posted on by Keith McKinley

Leading logistics provider Johnston Logistics UK has unveiled its new website. The growing company’s new online presence better represents its growing reputation as a provider of warehousing and logistics for leading brands and retailers.

“When I look back at recent years, we’ve developed a lot; both as a business and as a team. We want to continue this journey and it’s important to have a website that better reflects both where we are and where we’re going,” says Rob McIndoe, Director of Johnston Logistics UK.

With an increased focus on its 40 years of experience and use of new technology, the website reflects the growth in Johnston Logistics UK’s reputation and was built by Full Mix Marketing who deliver all the logistics expert’s marketing.

“In the almost four years we’ve worked with Johnston Logistics UK, it’s clear they’ve grown in stature, capabilities and success. We wanted to ensure their website helped communicate just that to all the visitors driven to the website by marketing,” says Sarah West, Managing Director of Full Mix Marketing.

Through search engine optimisation (SEO) and content marketing, the B2B marketing agency reports that the existing Johnston Logistics UK website has received a four-fold increase in impressions on leading search engines over the past 12 months.

Johnston Logistics UK was formally established in 2010 but can trace its history back to 1978. It now handles over 320 million individual items each year. As a Primary Consolidation Centre for ASDA, over 50% of the wine sold in their supermarkets passes through Johnston Logistics UK’s Snetterton site.

As well as investing in digital marketing, the logistics expert has recently made a significant further investment in technology with a state-of-the-art Warehouse Management System (WMS). The new software has enhanced efficiency and the ease with which Johnston Logistics UK can integrate with its customers’ own systems and provide them with real-time information.

“It’s been an unprecedented 12 months with the pandemic. Our team has worked exceptionally hard to support existing clients and a growing number of leading businesses. But it’s still been important to invest in our future and the website is one way we can show clients we’re always developing and looking to become even more supportive,” continues Rob McIndoe.

From its 700,000 sq ft of warehousing in Norfolk, Johnston Logistics UK delivers storage, logistics and fulfilment for businesses in sectors including wine, food, other fast-moving consumer goods and commercial products. It offers a complete range of services including palletised warehousing, HMRC customs and bonded warehousing, eCommerce fulfilment and complete third-party logistics.

Logistics company expands into new facility

Posted on by Keith McKinley

Following a period of expansion, just three years after the opening of its dedicated warehousing facility at Burnley Bridge, long-established logistics company Fagan & Whalley has set into motion plans to expand into additional warehousing space.

Set within the new development at Frontier Park in Blackburn, the new depot comprises over 200,000 sq ft of warehousing and distribution facilities and has been acquired by Fagan & Whalley as part of a wider business plan to expand the services on offer and welcome new clients on board.

“When reviewing our performance for the past 12 months, it soon came to light that both our warehousing and cross-dock operations have been operating at capacity for some time,” explains Fagan & Whalley Business Strategy Director, Sam Fagan. “Following our recent company restructure, which has been put into place in order to facilitate further growth, it was decided that additional space would need to be integrated into our existing infrastructure in order to achieve our plans for future expansion.”

With new and existing clients already scheduled to move stock into the site, plans are underway to install VNA and wide aisle pallet racking, ensuring the depot remains as flexible as possible for changing customer requirements.

“Our Burnley Bridge warehouse was built specifically to our specifications and brought into the operation back in September 2017. It’s a point of pride for us to be able to look back over the last three years and see how much the warehousing side of the business has grown. This move to acquire additional warehousing space seems a part of what has, up until now, been a very stable and natural progression.

“The decision to take on the site at Burnley Bridge was absolutely vital for us to make. It came at a time when we had reached a real turning point as a business. Seeing demand for warehousing space increase amongst our clients, our development at Burnley Bridge made it possible for us to further develop the comprehensive end-to-end logistics package on offer, whilst also allowing us to expand our ‘added value’ services.

“The additional facilities at Frontier Park will take this one step further, and we’re really excited to be able to welcome on board new clients and watch our warehousing services continue to grow over the next few years.”

“Small but mighty” – US 3PL Westhub Logistics Enters the Market

Posted on by Keith McKinley

Westhub Logistics (WHL), a Bay Area-based third-party logistics (3PL) company, announced their entry into the market for both B2B and B2C companies selling dry goods.

Specializing in receiving, warehousing and fulfillment, WHL has built a reputation on accurate inventory tracking, automation efficiency, customized orders and same-day delivery.

Though Westhub Logistics may not be as large a company as its competitors, founder Weston Cook (pictured) does not see this as a hindrance. “There’s this popular illusion that bigger is better. Though we are small, we are mighty,” Cook says. “And we believe our integrity is incomparable.”

Cook set out to “reimagine the impersonal—and often impractical—3PL industry” by launching a family-owned, personally operated company built on integrity, with an emphasis on serving local businesses. “I have always believed that taking things up a notch means bringing customer service down to earth,” said Cook.

Their personalized approach has drawn the attention of Amazon sellers. They manage sellers’ relationship with Amazon, keep track of their orders and calculate when additional products need stocking.

Likewise, with the pandemic forcing shifts in business strategy and paving the way for more online retail businesses to grow, Weshthub Logistics sees itself as a partner that can meet the moment.

Says Sales Manager Jessica Ramos, “With today’s logistical challenges and highly competitive online retail demand, we put our clients at the center with our customer friendly solutions and straightforward pricing.”

Agility Reports KD15.3m Net Profit for Q3

Posted on by David Priestman

Agility, a leading global logistics provider, today reported Q3 earnings of 8 fils per share on a net profit of KD 15.3 million, a decrease of 29.4% compared with the same period a year earlier. EBITDA declined 1.9% to KD 46.5 million, and revenue was flat at KD 403 million. Nine-month earnings stood at 16.47 fils per share on net profit of KD 31.5 million, a decrease of 50.4% over the same period in 2019. EBITDA declined 14.1% to KD 122.4 million, and revenue declined 0.7% to KD 1,168 million.

Tarek Sultan, Agility Vice Chairman and CEO, said: “While we – like many businesses – are still feeling the impact of COVID-19 we are also seeing recovery across most of our business lines, albeit with each business recovering at a different pace. Agility benefited from early and decisive measures taken to contain costs and preserve cash, and is well poised to navigate what is likely to continue to be a volatile market for some time. Agility remains committed to investing in technology that will transform our industry, expanding our digital logistics offerings, and bringing world-class warehousing infrastructure to fast-growing emerging markets.”

Global Integrated Logistics Q3 EBITDA was KD 18.5 million, a 35.2% increase from the same period in 2019. The improvement was primarily driven by significant cost reductions across the business. GIL’s Q3 net revenue was KD 71.4 million, 5.1% higher than the same period in 2019. Along with net revenue increases in Air Freight and Contract Logistics, there were net revenue declines in Ocean Freight, Fairs & Events and Project Logistics. GIL gross revenue was KD 305.7 million, a 7.3% increase from same period in 2019.  The Q3 Air Freight NR increase of 39.1% was driven by continued demand for exceptional shipments related to the Life Sciences vertical. Ocean Freight NR declined 14.5% when compared with Q3 2019, as a result of volume and yield compression. Air Freight and Ocean Freight volumes decreased in Q3 vs. same period in 2019, as a result of customers’ demand and production disruption arising from COVID-19 as well as capacity constraints.

Contract Logistics continues to experience strong growth (12.7% net revenue growth), mainly in the MEA Region (Kuwait, Saudi Arabia, UAE), where there was strong performance at new facilities, along with increased efficiencies. Fairs & Events (F&E) has been hurt significantly by Coronavirus-related event postponements and cancellations. Starting in Q1, GIL introduced a range of cost reduction measures intended to ensure continued strength of EBITDA performance in anticipation of falling global trade volumes. This positions GIL well for operating in the current environment. GIL continues to focus on operational productivity as well as customer solutions to respond to the changing market environment.

Agility’s Infrastructure Companies

Agility’s Infrastructure group EBITDA declined 16.5% to KD 31.6 million during the third quarter. UPAC, NAS and GCS were primarily responsible for the decrease, each reporting significant declines as a result of the pandemic. In contrast, Agility Logistics Parks (ALP) and Tristar proved resilient during this pandemic. Infrastructure group net revenue fell 24.4%, and gross revenue declined 15%. ALP experienced revenue growth of 5.6% in the third quarter. ALP continues to see increased demand for warehousing spaces from customers that are mainly suppliers of necessity goods. ALP is moving ahead with the developments in Kuwait, Saudi and Africa to meet customers demand.

Tristar, a fully integrated liquid logistics company, posted a 15.9% revenue decline mainly due to commercial fuel sales. Maritime segment has shown a healthy growth due to the deployment of new vessels on long term contract. Fuel Farm segment also reported an increase in revenue as compared to same period last year. At the profitability level, Tristar have achieved improvement in earnings mainly due to contribution from Maritime segment. Tristar contractual business model helped them to be resilient during this crisis and achieve a profitability growth compared to last year.
National Aviation Services (NAS) reported a Q3 revenue decrease of 46.1% but is beginning to see improvements in passenger traffic and flights. NAS Kuwait continues to suffer from the cap imposed by the government on the number of passengers/flights into/out of Kuwait International Airport. Other geographies NAS operate in performed well, and are experiencing a rebound. NAS VIP services and airport lounges have been mostly impacted, where, in most cases, lounges remain closed. Cargo remains a positive subsector for NAS.

The pandemic also has affected performance at United Projects for Aviation Services Company (UPAC), which saw revenues decline in the third quarter compared to last year; primarily due to the cessation of operations at the Kuwait International Airport during the lockdown period and subsequent resumption of traffic at a lower capacity. Business is starting to show signs of gradual recovery as UPAC continues taking measures to reduce the negative impact on its business.

At GCS, Agility’s customs modernization company, revenue fell 30.2% in this quarter compared to the third quarter of 2019 due to the decline in trade movement, though the negative impact of COVID-19 eased during Q3.

Recap of Agility 3rd quarter 2020 Financial Performance:
• Agility’s net profit decreased 29.4% to KD 15.3 million. EPS was 8 fils vs. 11.33 fils a year earlier.
• Agility’s EBITDA decreased 1.9% to KD 46.5 million.
• Agility’s revenue increased by 0.6%, to KD 403 million and net revenue decreased 9.7%.
• GIL revenue increased by 7.3% to KD 305.7 million.
• Infrastructure’s revenue declined 15% to KD 101.7 million.
• Agility enjoys a healthy balance sheet with KD 2.2 billion in assets. Net debt was KD 173.9 million (excluding lease liabilities) as of September 30, 2020. Reported operating cash flow was KD 115.2 million for the first nine months of 2020, an increase of 17.5%. more Agility news here

Dachser and Fraunhofer Institute Continue Research Partnership

Posted on by David Priestman

The Fraunhofer Institute for Material Flow and Logistics IML and Dachser are extending their collaboration in the Enterprise Lab for a further three years. Their partnership will continue to focus on research and development projects with practical application benefits for the Dachser network. These include digital technologies such as data science and artificial intelligence (AI), real-time locating systems (RTLS), 5G and the Internet of Things (IoT), autonomous vehicles, and adaptive warehouse systems.

“The first step in our joint research work in the Dachser Enterprise Lab is to gain a detailed understanding of new technologies and their potential for logistics. Then we build on that to develop prototypes and concepts that add tangible value for Dachser and our customers, turning them into innovations,” explains Stefan Hohm, Corporate Director Corporate Solutions, Research & Development at Dachser, who will head the new IT & Development executive unit as of January 1, 2021. “So far, the work we’ve done together has proven that we can transform research results from the Enterprise Lab into new processes and services throughout the entire logistics network,” Hohm says.

“We’re delighted that Dachser is continuing its collaboration with Fraunhofer Institute. Our research results up to now and our new research contracts show just how important applied research is for logistics and supply chain management,” says Prof. Michael ten Hompel, Managing Director of Fraunhofer IML. “We’re particularly proud that the lab teams have continued to work effectively despite the restrictions imposed by the coronavirus pandemic. Of course, technical aids such as video conferences and collaboration tools have been a great help. But above all, it’s the extraordinary commitment and motivation of everyone working at the Enterprise Lab that is key to successful research in challenging times,” ten Hompel says.

In the Dachser Enterprise Lab, Dachser logistics experts and scientists from Fraunhofer IML work in mixed lab teams on various research and development assignments. The partnership between the logistics service provider and the research institute was launched in October 2017 and will now run until October 2023.

 

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