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

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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Warehouse Storage Space in West Midlands

Five-year Logistics Contract Won

Clothing and fashion brand, Lyle & Scott has selected Davies Turner Logistics to provide third party warehousing, and management of final mile logistics fulfilment and distribution services across the UK for the next five years.

Signing the contract with Lyle & Scott coincided with the opening of Davies Turner’s latest logistics fulfilment centre at Atherstone in the Midlands; its seventh bespoke 3PL facility in the UK; from which Lyle & Scott’s UK storage and order fulfilment requirements will be managed.

The omnichannel contract encompasses all of Lyle & Scott’s business activities across retail and wholesale outlets; online channels; as well as a variety of value-added services such as quality control; and reverse logistics operations.

Emily Stephenson (pictured), managing director at Davies Turner Logistics says: ““Davies Turner is well known for offering retail brands a high degree of logistics service flexibility to support their multichannel operations, providing both the scalability and the customisation they need for their supply chains.

“We have put together a dedicated team to work with Lyle & Scott to optimise management of its inventory and order fulfilment throughout its whole supply chain in the UK so that it can make good on its promises to customers.

“We are looking forward to building a mutually beneficial relationship with the company.”

Andrew Stellakis, director of IT and operations at Lyle & Scott says: “Lyle & Scott was formed in 1874 with the ambition of making high-quality knitted garments focusing on the importance of quality and craftsmanship.

“During a very competitive tender process it became clear that those principles underpin Davies Turner’s logistics operations and have done so since its own formation four years prior to that of Lyle & Scott.

“We were particularly impressed about the visibility that Davies Turner offers of the whole supply chain, which will allow stock to be moved from one channel to another and help to keep all Lyle & Scott’s outlets supplied. Our willingness to sign a five-year contract is a clear demonstration of Lyle & Scott’s confidence in Davies Turner Logistics ability to meet our challenging logistics fulfilment and distribution requirements across the UK.”

Stephenson concludes: “The new contract and the new property marks the next step in Davies Turner’s ongoing growth of our 3PL supply chain management business and we look forward to welcoming other businesses to join Lyle & Scott at our latest fulfilment centre.

“The new multi-user hub is a fully Customs-bonded facility, with 140,000 sq ft of warehousing, incorporating a high bay fully racked area, as well as four 35,000 sq ft mezzanine floors for order fulfilment operations.

“As one of the first occupants, Lyle & Scott is showing that it understands Davies Turner’s belief that such facilities enhance its capacity to deliver logistics fulfilment services to businesses seeking to outsource their supply chain management requirements.”

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Multi-million Automation Contract Win

 

Unparalleled Fulfilment Centre for Decathlon

Leading French sporting goods specialist Decathlon automated its intralogistics with FlashPick from TGW. The new Fulfilment Centre for Decathlon in Rouvignies (Northern France) is the high-performance backbone of Decathlon’s entire supply chain.

Fulfilment Centre for Decathlon

From there, the products are shipped to 25 regional storage centres. The intralogistics centre increases efficiency and flexibility and lays the foundation for a significant reduction in logistics costs thanks to the low Total Cost of Ownership (TCO).

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TGW solves its customers’ supply chain challenges with highly automated, efficient and future-proof intralogistics systems. Every day, the vision of the autonomous fulfilment centre gives the company a renewed sense of motivation to give its best. In the core markets of Fashion & Apparel, Grocery and Industrial & Consumer Goods, TGW builds on strong partnerships that include everything from planning to implementation to lifetime services. In the 2022/2023 business year, TGW generated a total turnover of 955 million euros.

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Decathlon appoints Geek+ as robotics partner

 

 

TGW Presents the Future Fulfilment Centre

The TGW Logistics Group will demonstrate its Future Fulfilment Centre – how it works, how users can benefit from its advantages, and what technology it uses – for visitors at the LogiMAT intralogistics trade fair in Stuttgart from 25 to 27 April. To promote the continuous development of this innovative ecosystem, the company invests heavily in technology, structures and its employees.

There is a fundamental difference between today’s warehouses and the Future Fulfillment Center: the system of the future is not only highly automated, but also and above all it operates proactively. This means that it fulfils tasks independently, optimises processes and is constantly learning. At the same time, it offers maximum flexibility and thus relieves the operator’s workload. For example, in the future, staff scheduling need not be handled by employees, but rather can be carried out by intelligent software tools via data processing. These tools will also control performance in an energy-efficient and low-wear manner and will anticipate consumption behaviour.

Customer benefits, flexibility and profitability

TGW is constantly working to further develop the Future Fulfilment Centre and its modules, which range from user-friendly software to intelligent mechatronics to a digital twin. There are three central goals in this regard:

• Greater customer benefits: operating the system shall require significantly less time and effort, allowing customers to focus entirely on their core business.
• Greater flexibility: customers shall be in a position to increase their adaptability and react flexibly to changes in the market or in their business models.
• Greater profitability: system performance shall be adapted to the required availability, thus increasing profitability by minimising staffing, reducing wear and decreasing energy consumption.

It’s not just the geopolitical situation that is unpredictable: changes in economic sectors also complicate things. Faster delivery promises and rising service levels continue to drive these developments, while demographic change exacerbates the shortage of qualified personnel. “Anyone investing in a new intralogistics system is seeking flexibility, efficiency and fitness for the future – and collaboration with partners that they can trust 100 percent,” emphasises Harald Schröpf, CEO of the TGW Logistics Group.

Transparent, self-learning and self-healing

The credo is therefore: Spotlight on customer benefits. Keywords like full data transparency, self-learning and self-recovery are hallmarks of TGW’s Future Fulfillment Center. Initially, relevant data are gathered and used for a digital representation. The system learns through information analysis and uses real-time data for optimisations. It proactively corrects malfunctions and autonomously reports potential sources of error.

Focusing on sustainability

The fulfilment centre of the future is based not only on modern robotic technology that increases profitability and addresses the labour shortage, but also on the three pillars of sustainability. “Our basic principle is that each system must be planned and implemented in an ecologically, economically and socially acceptable manner,” insists Harald Schröpf. In order to fulfil this promise, TGW is constantly optimising its supply chain and developing more sustainable products.

In order to continue promoting the Future Fulfillment Center and improving the technology, TGW consistently invests in research and development. “We invest approximately 4.5 percent of our annual revenue, which is significantly more than many of our competitors,” according to CEO Harald Schröpf. “At the moment, there are over 750 specialists working in the areas of software and digitalisation at TGW.”

TGW Logistics Group is one of the leading, international suppliers of material handling solutions. For more than 50 years, the Austrian specialist has implemented automated systems for its international customers, including brands from A as in Adidas to Z as in Zalando. As systems integrator, TGW plans, produces and implements complex logistics centres, from mechatronic products and robots to control systems and software. The company has subsidiaries in Europe, China and the US and more than 4,000 employees worldwide. In the 2020/2021 business year, the company generated a total turnover of 813 million euros.

Rise of Direct-to-Consumer in Europe

Nearly six out of ten European organisations (59%) across ecommerce, manufacturing, retail, transport and logistics supply chain, and wholesale say their investment in the Direct-to-Consumer (DTC) delivery model has increased since early 2020, with a total of 18% saying it has increased significantly. By increasing their investment, organisations believe they can improve profit margins, reduce cost, and service customers more effectively.

That’s according to a European Direct-to-Consumer research report by Deposco, a leading provider of omnichannel supply chain fulfilment solutions, polling decision-makers across the UK, Benelux and the Nordics, which points to a dynamic, fast-growing DTC sector.

However, organisations are also facing a range of barriers related to people and technology when it comes to achieving the DTC success they are seeking. These include, in the former category, lack of skilled staff, highlighted by 17% of the survey sample and culture of the company (16%), and in the latter, physical infrastructure (19%) and difficulties identifying the right infrastructure for DTC (16%).

Sustainability and Customer Experience are the key growth drivers of DTC in Europe

The latest technology is key in helping businesses protect themselves from failing to fulfil customer expectations when operating DTC. The survey reveals that many organisations are considering complete categories of products and even their whole range through DTC. Organisations must ensure that they are investing in people and technology and making sure that that their systems and processes are working at optimum efficiency levels. Putting money behind order management and fulfilment will be a key part of that.

42% of the survey sample highlighted investing more in order management and fulfilment technology as a key way of protecting themselves from failing to fulfil customer expectations when operating DTC while 29% referenced creating real-time visibility across all inventory locations.

Deposco’s complimentary report, The Rise of Direct-to-Consumer in Europe: How businesses can break through the barriers and make a success of DTC channels, is now available.

Asendia ecommerce Strategic Partnership

Asendia, the joint venture between La Poste and Swiss Post, and Omniva, the Estonian National Postal Operator, have signed a strategic ecommerce partnership that will help e-tailers expand their sales into established and emerging markets and cover Asendia whole range of e-PAQ services.

Thanks to its wide network, logistics capabilities, strong regional relationships, and long-lasting experience in e-commerce, Omniva will connect Asendia not only to the Baltics, Finland and Eastern Europe but to Central Asia and the Caucasus region.

This partnership enables Asendia to offer e-retailers access to a global market of 294 million potential e-shoppers in 30 countries. According to estimates of the Statista Digital Market Outlook, the e-commerce revenue in the 9 countries of Central Asia and Caucasus region is expected to increase in the coming years, reaching a value of 15 Billon US$ by 2025. This makes these countries attractive destinations for cross-border retailers and marketplaces.

ecommerce Opportunity

Commenting on the partnership and the opportunity, Marc Pontet, CEO of Asendia, said, “Our partnership with Omniva illustrates our commitment to our customers to keep on developing our solutions in parts of the world where online shopping is growing fast and strongly.
Asendia will enable e-tailers in 17 countries to access this solution, thanks to an operational and sales presence in these important markets on 4 continents.

“Omniva and Asendia co-operation is a perfect fit. We both share the desire to provide extraordinary service for the B2C market and can see the great opportunity that this part of the world offers e-tailers abroad. Joining forces, we can cover the fastest growing markets and emerging ones, and provide seamless service for our customers,” said Mart Mägi, Chairman of the Omniva Management Board.

Both companies are very excited to launch the services under this partnership as soon as possible, with a launch scheduled during the second quarter of 2023.

Polish eGrocer and TGW Deepen Partnership

By the end of 2023, TGW will have finished building a highly-automated fulfilment centre for Frisco.pl in the Polish capital of Warsaw. This is the second project in a row that the two companies have undertaken together. For the online grocery retailer, this project will lay the foundation for its planned dynamic growth in the coming years in the intensely competitive Polish market.

Frisco.pl is one of the leading eGrocery players in Poland and already supplies over 120,000 customers in Warsaw, Krakow, Poznań, Wrocław Bydgoszcz, Tricity and Silesia region with groceries and non-food items. Their customers enjoy a broad product range, high product and service quality and a delivery window of just one hour. Ordered goods are delivered right to customers’ doorsteps or offices seven days a week.

Online grocery market with high growth rates

Frisco and TGW have been working closely together for several years. Together, the intralogistics partners already implemented one fulfilment centre that has been operating in Warsaw since 2019. “The second automated warehouse will allow us to double our operations in Warsaw while keeping our logistics processes highly efficient,” says Grzegorz Bielecki, COO of Frisco.pl

A shuttle warehouse with 48,000 storage locations will constitute the high-performance heart of the new system, which will also be located in the Polish capital. The shuttle warehouse will allow direct access to each and every item and thus facilitate the shortest possible cycle times. The plans include four aisles for the ambient temperature area and two more for chilled products. Customer orders will be compiled efficiently at ergonomic PickCenter One workstations.

“This is another important step for Frisco.pl as we work towards our ambitious plan of a double digit growth rate in the upcoming years and to maintain the leading position in Warsaw while at the same time we keep the quality of our products and services at the accustomed high level,” emphasises Jacek Palec, CEO of Frisco.pl.

TGW Logistics Group is one of the leading, international suppliers of material handling solutions. For more than 50 years, the Austrian specialist has implemented automated systems for its international customers, including brands from A as in Adidas to Z as in Zalando. As systems integrator, TGW plans, produces and implements complex logistics centres, from mechatronic products and robots to control systems and software.

TGW Logistics Group has subsidiaries in Europe, China and the US and more than 4,000 employees worldwide. In the 2020/2021 business year, the company generated a total turnover of 813 million euros.

Fashion Retail Fulfilment Centre

When online fashion retailer ASOS embarked on setting up its fourth fulfilment centre, the company turned to tried and trusted materials handling partner, BS Handling Systems. ASOS took possession of the keys for the 437,000 sq. ft. Lichfield, UK, warehouse in January 2021 and had less than eight months to make the site fully operational by August of that year to support the Black Friday peak in November.

“In October 2020 we began a very rigorous tender process to identify suppliers who would not only deliver competitive and high quality solutions, but also work as part of a team in a flexible, adaptable and responsive manner,” explains Gary Beveridge, Director of Supply Chain Development for ASOS. Having previously worked with BS Handling Systems on a number of major projects, it was clear that they would be able not only to deliver the right solution, but also to adapt to the inevitable design changes that pop up as a project of this nature progresses.

“The first phase of BS Handling Systems’ support provided the major conveyor and despatch sorter elements. Later followed design and installation of additional smaller works including our secure caged area for high value items such as jewellery and belts; a hanging garment storage system that transports inbound goods on hangers (GOH) from goods in up to the top floor of the pick tower, and a conveyor solution to get waste cardboard boxes from all five storage floors of the pick tower out to the waste skips in the yard.”

Storage capacity of around 7 million units of stock

The site go-live was planned for August 2021, providing a storage capacity of around seven million units of stock and outbound capacity of a million units of stock shipped on customer orders each week. BS Handling Systems was responsible for creating the conveyor ring which helps move 1200 inbound cartons or returns totes, as well as
1200 outbound totes an hour through the pick tower. In addition, the company had to design, build and install a high speed despatch sorter with a capacity to handle up to 14,000 parcels an hour.

New stock, in cartons, is unloaded from delivery trucks and placed on the inbound conveyor system. This transports stock through two DWS (Dimensioning-Weighing-Scanning) systems and ultimately to its storage location in shelving on one of four put away zones on each of five storage floors of the pick tower. Outbound picked items are placed in colour coded totes – black for multiple orders and green for singles – these totes are transported down to one of four outbound tote sortation zones on the ground floor.

From here, the totes are delivered to one of four packing lines which BS Handling Systems designed and installed. Each line comprises of 20 packing benches and a conveyor with DWS systems to transport the packed goods to the despatch sorter inducts or direct to the loose load trailer despatch line. Four 2 x 2 Intralox ARB sorters – one per infeed line – divert the product to one of two banks of high-speed sorter inducts which merge the packages onto the despatch sorter or direct to the loose load trailer line.

Versatile high speed despatch sorter

The despatch sorter had to be capable of handling a wide range of package sizes and weights, from small items such as jewellery right up to large boxes with coats or pairs of boots. It had to be able to handle these varying sizes rapidly without error, as the long-term capacity target is four and half million units going out to customers each week during peak.

BS Handling Systems also designed and built a waste cardboard box removal system. This consisted of three steel chutes running from the top floor of the pick tower down to the first floor where the boxes dropped onto a dunnage conveyor belt taking them out to the automatic waste baler in the yard.

To avoid blockages occurring in the steel chutes, BS Handling Systems designed a clever, but simple ‘traffic light’ system at each input station on every chute. When arriving at the chute, the light is red and the operatives cannot put waste down the chute. The operator presses the ‘request use’ button, and once the light turns green they have a set period of time to safely dispose of the waste down the chute – locking out the other floors. This avoids too many boxes going down the chutes at one time and either blocking the chutes or over-loading the conveyor at the bottom.

The project also required BS Handling Systems to design and install a conveyor system that enabled the unloading and loading of goods from and into truck trailers. The solution included six man rider telescopic boom loaders; these booms improved the efficiency of unloading and loading goods directly from or into the back of the trailers.

A true partnership founded on a ‘can-do’ attitude

Beveridge added, “the team at BS Handling Systems did a fantastic job throughout. They are exceptionally easy to deal with and very responsive, always demonstrating a ‘can-do’ attitude. Without hesitation, they are willing to go ‘above and beyond’ to make sure that the end product delivered to ASOS is absolutely the best we can achieve. They now have a team of ten engineers on site providing 24/7 maintenance for the facility; this team works closely with GXO who run the operation for us. The maintenance team has integrated really well into our structure here in Lichfield. They have their own caged area on the ground floor with all the spares required to ensure we can keep the fulfilment centre running.”

More than just a supplier

“Rob, Stephen and the BS Handling Systems team have worked with ASOS for a long time and we consider them more than just a supplier. The timelines we had to achieve here at Lichfield were tight and it was comforting to know that we could trust BS Handling Systems not only to do a really professional job, but also to go above and beyond whenever it was necessary. There’s no question that, however challenging, they will always do what’s best for ASOS,” concludes Beveridge.

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