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Amazon to Invest £40 Billion in UK Logistics and Infrastructure

Posted on by David Priestman

Amazon has announced a major investment of £40 billion (US$54 billion) in the United Kingdom over the next three years, marking one of its largest-ever financial commitments outside the United States. The move will significantly expand Amazon’s logistics, fulfilment, cloud computing, and content production capabilities across the UK, while creating thousands of new jobs and reinforcing its strategic position in the market.

As part of the investment, Amazon plans to open four new fulfilment centres in Hull, Northampton, the East Midlands, and one additional location yet to be confirmed. The Hull and Northampton sites alone are expected to generate around 2,000 permanent jobs each. In addition, more than 100 existing logistics sites — including delivery stations and operations buildings — will be upgraded, supporting faster and more efficient distribution nationwide. New delivery stations will also be developed to strengthen last-mile delivery performance and meet growing consumer demand.

Beyond logistics, the company is also committing significant resources to technology and infrastructure. This includes an £8 billion investment in Amazon Web Services (AWS) data centres, announced last year and set to be rolled out through 2028. These facilities will support the growth of cloud computing, artificial intelligence, and big data services across the UK economy. Additional spending will go toward two new corporate office buildings in London and the redevelopment of Bray Film Studios in Berkshire, supporting Amazon’s growing content production efforts.

Amazon currently employs around 75,000 people in the UK, making it one of the country’s top ten private employers. With this new investment, the company aims to create thousands of new full-time roles across logistics, tech, and cloud services. The expansion not only deepens Amazon’s operational footprint in Britain, but also supports the broader economic agenda set out by the newly elected UK government.

Prime Minister Keir Starmer welcomed the announcement as a “massive vote of confidence in the UK as the best place to do business.” The investment aligns closely with the government’s newly launched Modern Industrial Strategy, which emphasises growth through private investment, innovation, green energy, and skills development.

From a logistics perspective, this development is transformative. The addition of new fulfilment centres and delivery stations will substantially enhance Amazon’s warehousing capacity, regional reach, and delivery speed. Locating facilities in areas such as Hull and Northampton enables more distributed operations and helps relieve pressure on London-based infrastructure. Meanwhile, investments in AWS and AI-driven data centres will further strengthen the integration of automation, predictive analytics, and smart logistics into Amazon’s supply chain — setting new benchmarks for operational efficiency and scalability.

While the long-term benefits to the UK economy are clear, Amazon still faces regulatory scrutiny. The company is currently under review by the UK’s grocery watchdog over concerns about delayed supplier payments, indicating that its growing influence will continue to be monitored by public authorities.

For the logistics industry, Amazon’s £40 billion commitment represents a decisive shift. The scale of investment will reshape the competitive landscape, fuel demand for third-party services, and open up new opportunities in warehousing, transport, and supply chain innovation. As Amazon doubles down on UK infrastructure, the entire sector may need to raise its game — or find smart ways to complement, not compete with, a rapidly evolving logistics giant.

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Fully-managed, End-to-end Supply Chain

Posted on by David Priestman

‘Supply Chain by Amazon’ aims to simplify seller operations, lowering costs and getting products from factories to customers more quickly and efficiently.

Since announcing its vision for an end-to-end, fully-automated set of supply-chain services that provides sellers with a complete solution to quickly and reliably move products directly from their manufacturers to customers around the world, Amazon has worked to deliver against this idea to revolutionise the supply chain landscape.

Through Supply Chain by Amazon, sellers can leverage Amazon’s advanced logistics, warehousing, distribution, fulfilment, and transportation to move products from factories to customers faster than ever before, reducing shipping times and saving sellers time, effort, and money. Hundreds of thousands of sellers already use at least one of these Supply Chain by Amazon services, with adoption of multiple services tripling in the first half of 2024. Now sellers have a fully managed option where Amazon provides forecasting and optimisation, and manages the flows between these supply chain services.

Using Supply Chain by Amazon has been transformative for Amazon seller Steve Neufer, co-founder of Juvo+, which creates high-quality products that improve people’s everyday lives. “Having Amazon partner with us on our end-to-end supply chain has been a game changer that’s great for our business,” said Neufer. “The speed and reliability of its logistics services has enabled us to keep our products in stock with less working capital while delighting customers with lightning-fast deliveries. Customers react strongly to being able to get a product same day or next day, and we see our sales conversion roughly double.”

Maximising inventory efficiency

Amazon is rapidly scaling global logistics, enabling worldwide product movement from manufacturing hubs, across borders, through customs, and arriving in destination countries. Amazon moved more than 20,000 containers globally in August. In terms of domestic logistics, the company allows sellers to book transportation at up to 25% lower cost, compared to alternatives. Domestic logistics services are now available in 19 countries, and in just the U.S., sellers have used our domestic logistics services to send 2 billion product units into our fulfilment network since this time last year.

Sellers also need low-cost warehousing to store products in bulk so they can quickly replenish them to fulfilment centres and physical stores that service customer orders and shopping. Amazon Warehousing and Distribution (AWD) offers this solution at a great value, and we’re connecting AWD with more fulfilment centres and transportation lanes to accelerate U.S. product delivery. This year has seen a quadrupling of AWD capacity in the U.S. to support explosive growth in seller demand.

Multi-Channel Distribution has been introduced (MCD) as a new feature for AWD, supporting sellers in distributing products in bulk across their sales channels. MCD significantly streamlines the supply chain process for sellers by allowing them to hold one unified inventory pool in AWD that can serve all their channels, rather than having to allocate inventory to each channel from the start – which can be costly if it turns out to be too much inventory or lead to missed sales if it’s too little. Sellers are finding that consolidating into a single pool in AWD reduces total stock needs by 20% on average – a significant capital savings – and prevents stockouts, which means sellers also drive more sales. MCD also launched the ability to do custom labelling, enabling sellers to distribute products in bulk to numerous different sales channels, including other marketplace services, wholesalers, distributors, and sellers’ own physical stores.

Introducing the fully-managed option

Amazon’s Fully-Managed Supply Chain by Amazon solution makes the supply chain more turnkey than ever before. Sellers can continue to choose which supply chain services they want to use and manage decisions on product movement on their own, or they can have Amazon automate the movement of products through these supply chain services with the fully-managed option. Sellers simply provide product details and pickup locations and Amazon oversees the rest, including carrier pickup, inventory consolidation, strategic replenishment and placement into fulfilment centres nearest to customers, and continuous analytically-driven optimisation based on demand, inventory levels, and costs. It’s as easy as pushing a button, and sellers reap the benefits of working capital gains, increased sales, and a lot less effort. When sellers use this service, they qualify for AWD integrated rates, including a 25% discount on AWD storage fees and a 15% reduction in AWD transportation and processing costs – making it an even greater value. With Amazon’s years of supply chain expertise, we can keep products in stock, at the right locations, to deliver to customers at the fastest speeds ever. For sellers, rapid delivery is a big boost to their businesses because it drives increased sales conversion, and in fact, sellers are seeing that by using the fully-managed option and having Amazon improve their delivery speed, their sales are increasing by an average of 20%.

“Becoming an expert in supply chain is not how sellers win,” said Neufer. “We win by making better products and delivering for the customer. Amazon is an expert in supply chain. Instead of shouldering every aspect of inventory, logistics, and customs, Amazon is a great partner for businesses of all sizes because they help take that on for us. This frees up time and energy to focus on elevating brands, understanding customer needs, and building great products; that’s how sellers really win.”

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Amazon’s New £500m Leeds Hub to Create 2,000+ Jobs

Posted on by David Priestman

Amazon has announced the opening of a major new fulfillment center hub in Leeds, which is set to create over 2000 jobs and strengthen the company’s logistics network across the UK.

Investment and Economic Impact

The new fulfillment center at Gateway45 represents a significant £500 million investment. This expansion is expected to provide a substantial boost to the local economy by creating job opportunities across various roles, including engineering, HR, and warehouse operations.

Advanced Robotics and Technology Integration

Spanning three floors, the Leeds facility will incorporate Amazon’s latest robotics technology. These systems are designed to streamline operations, improve processing efficiency, and enhance the speed of customer order fulfillment. This focus on automation and technological innovation is a key part of Amazon’s logistics strategy. Similar technologies are already in use at other Amazon centers, like in Tilbury, where robots help move shelves directly to workers, reducing time and effort.

Sustainability and Regional Investment Strategy

The fulfillment center is equipped with energy-efficient features and solar power provisions, reflecting Amazon’s commitment to reducing its carbon footprint while maintaining operational efficiency. This development forms part of Amazon’s regional investment strategy, which has exceeded £1.5 billion since 2010. Other UK facilities, such as the Dunfermline center, have also implemented similar sustainability measures. By investing in facilities like the one in Leeds, Amazon continues to expand its footprint in the UK while contributing to local economies and enhancing its supply chain capabilities.

Looking Ahead

As Amazon gears up for the facility’s full operational launch in late 2024, the company’s focus remains on creating opportunities, driving innovation, and supporting sustainable development within the logistics sector. The Leeds fulfillment center is poised to become a central hub in Amazon’s UK network, supporting both local communities and the company’s broader global operations.

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Electric Cargo Bikes will Deliver Thousands of Packages

Posted on by David Priestman

Amazon has opened its first micromobility hub in Norfolk, UK at its delivery station in Norwich. The hub now houses a fleet of new electric cargo bikes which will deliver thousands of packages per week to customers, taking traditional delivery vans off city centre roads, and helping to improve air quality and alleviate congestion.

Norwich joins more than 40 cities in the UK and across Europe which have Amazon micromobility hubs facilitating electric cargo bike and on-foot deliveries. As part of a £300 million investment to electrify and decarbonise Amazon’s UK transportation network, electric cargo bikes and walkers are now expected to make millions of deliveries to Amazon customers across the UK every year.

“Our new electric cargo bikes are part of Amazon’s commitment to reach net zero carbon emissions across our operations by 2040, ten years ahead of the Paris Agreement. This is a proud moment for our team, and great news for customers across the city who will benefit from zero-emissions deliveries to their door,” said Connor Ashford, Senior Delivery Station Manager at Amazon in Norwich.

Danzen Logistics is a local courier company which provides delivery services to Amazon customers in Norwich. Dan Zenchuk, owner of Danzen Logistics said: “We are delighted to work with Amazon to bring this fleet of electric cargo bikes to Norwich. We think the electric cargo bikes are going to be a big hit with customers, while also supporting Amazon’s sustainability commitments, and providing additional delivery rider opportunities in the area.”

As well as traditional carriers, Amazon works with a community of Delivery Service Partners – small and medium sized courier businesses like Danzen Logistics – which provide work opportunities to thousands of individuals who deliver packages to customers. Amazon and its partners already have more than 1,000 electric delivery vans deployed across the UK and Ireland, in addition to nine fully electric heavy goods vehicles, the first in the company’s fleet, which have replaced traditional lorries.

All of the electricity consumed by Amazon’s operations, including its data centers, was matched with 100% renewable energy in 2023 – seven years ahead of the 2030 goal the company had set. As the largest corporate purchaser of renewable energy globally and in the UK, Amazon has 29 operational on-site solar projects and enabled seven large-scale offsite renewable energy projects, with a capacity of more than 900MW in the UK.

Once all projects are operational, they are expected to generate enough energy to power the equivalent of more than one million UK homes annually. These include corporate purchase power agreements with; a wind farm in Ballykeel, Co Antrim, which opened last year; Moray West Offshore Windfarm in Scotland; and East Anglia THREE offshore windfarm in Suffolk which, once operational, will generate enough clean electricity to power the equivalent of 1.3 million British homes and will be the second biggest offshore wind farm in the world.

Delivery stations power the last mile of Amazon’s order process and help speed up deliveries for customers. Packages are shipped to a delivery station from neighbouring Amazon fulfilment and sortation centres, loaded into delivery vehicles and delivered to customers. Amazon’s Norwich delivery station opened in September 2016 and employs more than a hundred permanent employees to process customer orders.

Pay for employees at the delivery station in Norwich starts at £12.30 per hour and employees are offered a comprehensive benefits package, including private medical insurance, life assurance, income protection and an employee discount. Since 2010, Amazon has invested over £2.1 billion in East Anglia, and more than 3,000 small and medium sized businesses from the region sell on the Amazon store.

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Innovating Mental Health Strategies in Fulfilment

Posted on by David Priestman

Mental health strategies in the fulfilment industry can be innovated, writes Zihana Jaleel, Head of HR at Huboo.

The fulfilment industry has increasingly come under the spotlight for its treatment of employees, with particular attention to mental health and general wellbeing. Fingers are often pointed to large corporations like Amazon, highlighting harsh working conditions including demanding shift schedules and physically intense tasks – with some warehouse staff reportedly walking over 16 kilometres during a single shift. These issues have led to well-publicised strikes and debates around labour practices.

With Mental Health Awareness Week upon us, it feels prudent to evaluate what shifts have taken place within the industry when it comes to employee wellbeing. Are the perks and initiatives many companies implement actually effective in making a real difference to employees’ lives?

After many years in HR, I’ve gained firsthand insights into the various challenges and potential solutions for promoting better mental health in our industry – and it starts with going right back to basics.

Prioritising meaningful workplace enhancements

Our experience at Huboo has shown that while wellness perks like free exercise classes and healthy snacks are appreciated, they are not a panacea. We offer activities such as yoga and sports clubs, which are popular for team bonding and relaxation, yet these benefits only touch on broader issues if a company’s foundational work conditions remain unaddressed.

The crux of improving employee wellbeing lies in enhancing the actual work conditions themselves. A significant emphasis on bettering these conditions is crucial, as it not only elevates the immediate work environment but also serves as a prerequisite for other wellness initiatives to succeed. In environments that are safe, supportive, and respectful, employees are more likely to engage with additional perks, leading to a healthier, more satisfied workforce.

To this end, we have introduced a unique ‘hub’ model within our warehouses, segmenting larger spaces into smaller, more manageable units. This reduces physical strain by organising items efficiently and empowers our hub managers through enhanced technology use. This initiative has proven to reduce the physical demands of our roles significantly, improving job satisfaction and reducing staff turnover.

Listening to What Employees Really Need

Too often, companies adopt the latest HR trends without ensuring longevity or real impact. The key to meaningful change lies in genuine engagement with employees, actively seeking their feedback and involving them in the decision-making process.

At Huboo, we’ve implemented Coffee & Cake sessions, initially in our UK offices with plans to expand these internationally. These sessions provide a relaxed forum for staff to discuss their concerns and suggestions with senior management directly. Such initiatives are not just well-received; they’re crucial for creating an adaptive and responsive work environment.

By aligning employee feedback with our operational policies and decisions, we underscore our commitment to their overall wellbeing and satisfaction. This approach not only addresses potential mental health issues before they escalate but also enhances the collective performance of our workforce.

Looking ahead, the future of workplace wellness in the fulfilment sector hinges on a culture that embraces continuous listening and meaningful action. By prioritising employee feedback and their wellbeing, we can transform the industry into a supportive environment that fosters both personal and professional growth.

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Reader Survey on AGV/AMR Usage

Posted on by David Priestman

Logistics Business is carrying out a market research reader survey of our international audience on the usage and uptake of AGVs (automated guided vehicles) and AMRs (automated mobile robots). This exclusive new survey focuses on automated warehouse vehicles and automated forklifts. It covers their deployment, navigation technology, tasks, interaction, challenges and purchasing.

Warehouse managers and materials handling buyers – we need you to complete our survey! Complete the survey now for the chance to win a £100 Amazon voucher. The prize draw will be made at the end of May. It will take no more than 10 minutes to complete. Thanks in advance. Click here to enter

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Survey Results: AGVs & AMRs – Read Now

Posted on by David Priestman

Logistics Business conducted a reader survey with BlueBotics on the usage of automated vehicles in the warehouse. The survey results have now been published and are available to read or download here.

The exclusive survey focused on AGVs, AMRs and automated forklifts, covering usage, navigation technology, tasks, challenges and purchasing.

Mobile robots and automation are transforming the way businesses operate by offering increased efficiency, cost savings and improved safety. But what are the potential opportunities and challenges associated with these technologies? And, what might happen next?

Survey Results

In this free report, we take an in-depth look at the current and future state of automated vehicles, covering topics such as:

A snapshot of the mobile robotics landscape today: why mobile robots are being adopted, and which vehicles are in use today; what goes into choosing the form factor of vehicles, and future fleet expansion; criteria when choosing an automated vehicle supplier, and defining what the vehicles will interact with on-site; key challenges when adopting automated vehicles – and how they’re paid for; defining the success of an automated vehicle programme.

We hope you find it useful and will be bringing you further surveys in future.

Survey: Transport & Logistics Technology. Take Part Now

Posted on by David Priestman

Logistics Business, in conjunction with Aptean, is carrying out a market research survey of our readers. The exclusive survey focuses on transport and logistics technology, specifically on commercial vehicle fleet operations. It covers fleet sizes and types, 3PL usage, route planning, challenges and strategies, telematics, carbon reduction and EVs. Transport Managers: We need you to complete our survey! Complete the survey now for the chance to win a £100 Amazon voucher. It takes just 10 minutes. The prize draw will be made in September. Click here to enter.

Warehouse Automation Through Partnership

Posted on by David Priestman

Today, Addverb, a leading provider of warehouse automation and robotics solutions for the supply chain and logistics industry, announces its partnership with Amazon Web Services (AWS) to improve the efficiency of its warehouse automation solutions. The partnership with AWS will allow Addverb to leverage the cloud platform‘s machine learning, analytics, and Internet of Things (IoT) connectivity capabilities to enhance the capabilities of its robotic solutions.

In response to the increasing disruptions and delays faced by the global supply chain, Addverb is committed to meeting the growing demand for faster and more efficient service. Through its collaboration with AWS, Addverb can now test and deploy hardware and software up to 50% faster than ever before – a game-changer in expediting services and minimizing supply chain interruptions.

“As part of our unwavering commitment to innovation, Addverb sought a solution to expand our software and hardware innovations without the need for a complete architectural overhaul,” shared Sriram Sridhar, Chief Revenue Officer at Addverb. “AWS emerged as the clear choice due to its seamless integration capabilities with our existing infrastructure. AWS’s cloud services have not only enhanced our operational efficiency but also minimized downtime, ultimately delivering greater value to our esteemed customers.”

Using AWS services, Addverb shortened its development cycle from 3-6 months down to 2-3 months. AWS’s analytics tools provided more accurate testing environments through warehouse simulations, helping developers analyse data and optimize operations in real-time. Addverb also leveraged AWS’s security and reliability features to ensure data privacy and minimize the risk of downtime, resulting in increased efficiency, reduced costs, and improved customer satisfaction.

Addverb is using AWS’s comprehensive suite of services, with an emphasis on RoboMaker and IoT Greengrass. RoboMaker empowers developers to run test templates and log software events, resulting in enhanced evaluation and reporting and an 80% reduction in testing time. Meanwhile, IoT Greengrass has enabled Addverb to leverage shipping containers for expedited robot delivery and real-time remote monitoring.

“By harnessing the power of AWS, we have laid a concrete infrastructure that will soon enable us to deliver robots as a service,” emphasized Kathi Raja Ravindra, leader of Addverb’s cloud DevOps team. “AWS seamlessly integrates with the tools that have made our existing development process reliable and robust.”

AI can Drive Supply Chain Future

Posted on by David Priestman

Supply chain issues have ceased to be a subject discussed solely among industry experts, writes James Newman, EMEA Director at GreyOrange. It is now a common concern voiced by businesses and consumers across the world and boasts a regular spot in the news headlines. Following the Covid-19 pandemic, 91% of consumers reported to taking the supply chain into consideration when making a purchase, an increase from just 45% before 2020, according to an Oracle survey.

Labour shortages, the Covid-19 pandemic, and global political unrest have been wreaking havoc on businesses’ ability to fulfil orders. Recent government census results show a twenty-six consecutive monthly increase in unfulfilled orders for manufactured goods.

The recent news that Amazon plans to close three of its UK warehouses, placing 1,200 jobs at risk, signals that even the world’s largest internet retailer is not immune to the problems in fulfilment and supply chains of recent years. Yet Amazon is preparing for the future, the warehouses it plans to shut will be replaced by new ones powered by robotics and automation.

It’s not all doom and gloom. The disruptions and troubles we are facing today allow us to reimagine and construct a stronger, more resilient supply chain of the future. The solution is already here: robotics and automation.

Overcoming labour shortages

It is no secret that there is currently a human labour shortage impacting most industries, and this is also true across every stage of the supply chain – especially in the warehouse. Instawork’s 2022 survey, found that 73% of warehouse operators couldn’t find enough labour. Businesses can try and entice workers with offering higher wages and increased benefits, but they still may be met with a limited response.

An often-overlooked problem for workers in the warehouse sector is that warehouses continue to be a comparatively unsafe place to work. The injury and work-related illness rate for the warehouse industry is 1 in 20 people – very high compared to many other jobs. The risk of injury or illness while working is driving a lot of people away from the sector, contributing to the growing warehouse worker shortage.

With a restricted workforce available, retailers are in danger of not being able to fulfil orders quickly enough, and therefore harming brand reputation with customers. Despite the pandemic induced spike in e-commerce sales, recent ONS findings show online retail sales to have returned to their pre-pandemic growth trajectory. This places online retail sales at 18.2% higher than their pre-pandemic levels. Yet, what the spike in sales during the pandemic has shown us is that supply chains are unprepared and technologically unequipped to manage sudden sharp changes in demand.

Current issues in distribution involving labour shortages, strikes, and delays could all be avoided by investing in robotic warehouse automation. The adoption of AI robotics can help to increase warehouse productivity by as much as 40%, reduce labour costs by as much as much one-third (33%), whilst also reducing order fulfilment time by as much as 50%.

With AI-powered robots in the warehouse, orders can be fulfilled 24/7 with no downtime, plus its flexibility and scalability means businesses can avoid overpaying and over-producing in their warehouses and distribution centres.

Robot-as-a-Service

RaaS is the means of leasing robotic devices and accessing a cloud-based subscription service rather than purchasing the equipment outright. The subscription-based service model puts an end to the worries of paying off an expensive piece of robotic equipment and dealing with any maintenance issues that arise.

Retailers are increasingly incorporating RaaS into their supply chains due to its scalability and flexibility, resulting in lower costs and increased efficiency. Businesses can scale up and down operation cost-effectively to meet peaks and drops in consumer demand, enabling businesses to only pay for what they use.

The lower entry cost of RaaS in comparison to traditional robotics programs grant small- and medium-sized businesses to access the benefits of robotics without the often cost-prohibitive initial investment.

The role that AI and Robotics can play in providing scalability, agility, and a great end-to-end customer experience, is an example of why technology changes need to be accelerated to ensure retailers stay nimble, and adaptable during high demand.

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