Wincanton Archives

Coca-Cola HBC Adds Extra Fizz to its Partnership

Posted on 15 May, 202529 July, 2025 by Will Priestman

Coca-Cola HBC, the strategic bottling partner of the Coca-Cola company on the island of Ireland, has extended its long-term partnership with Wincanton, the leading supply chain partner to UK businesses.

The contract extension until the end of 2026 builds on the two brands’ strong partnership which began in 2016 and marks a decade of collaboration.

As part of this collaboration, Wincanton will continue to provide warehouse operations management at Coca-Cola HBC’s dedicated facility in Lisburn, Northern Ireland, which handles over 52 million cases of popular brands such as Coca-Cola, Fanta and Monster per year.

Wincanton is also responsible for delivering operational efficiencies, incorporating volumes driven by the Deposit Return Scheme in the Republic of Ireland whilst also bringing logistics expertise to the facility to support the company’s ongoing growth.

Joanna Sneddon, Coca-Cola HBC Ireland and Northern Ireland Supply Chain Director said:

“Delivering high-quality products and service to our customers is our priority. We are pleased to grow our partnership with Wincanton on our journey to develop world class logistics service over the coming years.”

James Hurrell, MD for Grocery & Consumer at Wincanton, added:

“With its vision to be the world’s leading 24/7 beverage partner, we’re delighted to be supporting Coca-Cola HBC and its unique portfolio on its journey to exponential growth.

“We look forward to continuing our work together and celebrating a decade of growth, innovation, and automation together.”

The extended partnership also reflects a shared commitment to sustainability and innovation. Both companies are actively investing in greener supply chain practices, with Wincanton introducing initiatives to reduce carbon emissions and Coca-Cola HBC advancing its World Without Waste goals. This continued alignment on responsible logistics and environmental stewardship ensures that the partnership not only delivers operational excellence but also supports broader sustainability objectives.

Alongside its extended partnership with Coca-Cola HBC, Wincanton is undergoing significant transformation as it strengthens its market position through strategic acquisitions and partnerships. In early 2024, the company was acquired by GXO Logistics in a £762 million deal, which is currently under review by the UK’s Competition and Markets Authority (CMA). While the regulatory process continues, Wincanton remains focused on innovation and operational excellence. In a move to advance its automation capabilities, Wincanton also acquired inteq, a UK-based specialist in warehouse execution software and robotics integration. This acquisition brings inteq’s proprietary technology and expertise into Wincanton’s portfolio, enhancing its ability to deliver cutting-edge, efficient logistics solutions across its network.

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Why You Must Consider Logistics Early in Your Project

Posted on 17 June, 202429 July, 2025 by David Priestman

Logistics is an important cornerstone of every industry, with statistics indicating that 2.7 million logistics roles accounted for an estimated 8.2% of total employment in the UK. With it being such a prominent factor of the economy in the country, it should be something that’s at the forefront of business minds.

Wincanton, logistics partner and expert in the field, outlined that logistics within the construction industry alone has been criticised for being “poorly planned, uncoordinated, disruptive, and wasteful.” Experts believe in integrating logistics as a key factor in delivering a smooth-running project, with the benefits showing why it should be considered and planned in the early stages.

Improved scheduling with better quality

Whether it’s delays in the delivery of materials required for a project or a lack of the appropriate equipment or machinery, downtime can have a huge impact on when your project is delivered. Data taken from nPlan’s analysis of project delays found that a staggering near quarter of all projects end up being delivered more than 250 days late.

Integrating logistics from an early point in project planning can improve efficiency in scheduling. This way, you can guarantee that your labourers and workforce have the correct materials and tools to get started and deliver results to deadlines. This means less delays and downtime from the workforce onsite, in addition to staying within budget.

By improving the scheduling process, more time can be allocated towards stocking materials while placing greater emphasis on enhancing the quality of workplace life for labourers. This not only helps to streamline the project timeline but also ensures that it stays on schedule.

Cost saving and procurement

Planning logistics in the early stages of the project means significant cost savings across the board. Wincanton’s research found that as high as six per cent of a project’s total value is made up of logistics. While this might not seem like much, for bigger infrastructure projects that can reach £1 billion, this would equate to £60 million dedicated to logistics.

This is where integrated approaches to logistics can help to save on costs. Research has shown that this approach could save 20% through consolidating delivery costs, as well as limiting the over-ordering that can occur on projects. Not only can these streamlined logistics approaches save costs on delivery and the amount of materials ordered, but they can also help remove the hidden costs that occur during the procurement phase. Especially when integrated earlier in the planning process, local suppliers can be contacted and used to ensure that all costs and spending are kept within regions to help local economies.

Sustainability and accountability

Industries putting sustainability and holding themselves accountable for their carbon footprint is a huge conversation that has made its way into logistics. Clients want to be assured that their projects are green-focused to maintain positive perceptions from customer and their partners.

Integrating logistics in a timely fashion before the beginning of the project can help not only reduce the number of vehicles travelling and delivering to sites but also allow you to evaluate how your deliveries are carried out. This could be done by exploring other delivery methods rather than trucks and road vehicles, opening possibilities of rail, water, and other methods that could be greener and result in less carbon emissions.

Alternatively, it can allow projects to review the type of fleets used for these deliveries and how the fuel utilised could help further reduce the environmental impact on residents and communities in the area. This could be done by using electric vehicles (EVs) or naturally occurring compressed or liquified gases (CNG and LNG, respectively).

Project visibility and reporting

Planning for logistics and partnering with specialists can ensure end-to-end visibility across the supply chain. This offers:
• Full visibility on what materials, items, and equipment have been ordered, when they’re due to arrive, where they are in transit, and if there are any issues or delays.
• Updated compliance data with route information, which can be used to engage with local communities and their standards.
• Reporting data that can range from the emissions produced from your logistics, inventory onsite, and total vehicle movements to help make informed decisions at every project stage.
• Tracing and tracking of every component and product to ensure every item arrives at its target location.

Complete or Phased Approach to Warehouse Automation?

How to Anticipate Supply Chain Issues

Posted on 18 April, 202431 July, 2025 by Keith McKinley

Every industry, from retail to construction, relies on its supply chain for processes and operations to be successful. But with so many moving parts throughout, challenges arising can have a huge impact on the flow of deliveries. This is why it’s important to identify challenges before they grow into a much larger issue.

Wincanton, experts in infrastructure logistics, have provided insight into how to anticipate issues within the supply chain. This means that industries can be proactive about appropriately preparing and addressing them.

The early signs of disruptions

There are many ways that disruptions can occur in supply chains, like natural disasters. With some of the more common disruptions, there are warning signs that you can recognise early with key indicators:

Demand fluctuations

When there are unexpected and fast changes in demands from consumers, clients, or partners for a product or service, it can massively impact stock and delivery schedules throughout the supply chain. This can result from a particular seasonal demand or an emerging trend encouraging more investment.

Unstable suppliers

Supplier stability can be a massive issue throughout supply chains, with financial concerns such as missed payments. Another indicator can be breakdowns in communication with said suppliers.

Transport delays

Whether it’s traffic and route issues that are key to logistics, or lead times increasing, there are plenty of red flags that you can catch early. These disruptions can have a huge impact later down the supply chain.

Geopolitics

Politics can have a significant impact on supply chains, with relationships between countries and their trading and regulations massively affecting transport across borders and markets.

Proactively assessing the risks

Taking risk assessment seriously and proactively by implementing technologies and insights into supply chain processes can help stay ahead of disruptions and concerns with data-driven decision making.

Predictive analytics

Many companies may not realise they have existing data from within their industry of trends, fluctuations, and disruptions that regularly occur. By analysing that data for where particular sticking points are, businesses can make informed decisions and set up adaptable strategies that can flex according to needs.

Collaborative technology

Cloud-based systems have opened the doors of collaborative technologies that provide instant communication tools and offer transparency throughout the supply chain. Making the appropriate investments in collaborative tech can provide seamless communication as well as data and file sharing between businesses, stakeholders, and partners.

Visibility

Knowing where products and materials are within your supply chain relies on end-to-end visibility, which can be solved through effective tracking and monitoring. This can help identify where orders are and adjust to any challenges, thus preventing escalation.

Supply chain resilience, Diversifying

By diversifying the suppliers used and worked with, as well as optimising transport routes, it cuts down on the reliance on a singular source or region. This offers an alternative in the face of challenges that weren’t forecast.

Rolling monitoring

Through monitoring systems being incorporated, more accurate data on performance, trends, and the health of the supplier is produced. Having up-to-date information on the supply chain, as well as regular updates, helps keep strategies ready for change and evolution.

Flexible response strategies

A flexible response strategy is important for dealing with supply chain disruptions, as many issues can still occur despite analysis of the market and trends that occur. Having plans in place that can respond quickly and effectively can make a world of difference. The importance of anticipating and reacting to supply chain disruptions cannot be overstated, which is why proactive analysis and risk management should be prioritised to identify and prevent any stalling.

Industry View: Secure Your Supply Chain Now to Beat Disruption

IKEA Opens Logistics Facility in Ireland

Posted on 17 April, 202431 July, 2025 by David Priestman

IKEA Ireland is today opening its state-of-the-art distribution centre in Rathcoole, Co. Dublin, marking a significant milestone in the company’s expansion within Ireland. This new facility, employing over 200 people, follows investments in six plan and order points, upgrades to the Ballymun store, and an innovative collaboration with Tesco Ireland on affordable collection service, all to bring IKEA closer to customers across the Republic of Ireland.

The new distribution centre will result in IKEA’s business in Ireland having one of the shortest delivery times in Europe. Before now, IKEA deliveries to Irish consumers required dispatch from the UK. With the inauguration of this new multi-million-euro facility in Ireland, delivery times will reduce to just three days. This strategic move not only brings IKEA products closer to its Irish customers but also significantly improves product availability throughout Ireland.

The vast distribution centre is over 27,000 square metres, has a storage capacity of 20,000 cubic metres – equal to over 258,000 flatpack BILLY bookcases or double the size of Croke Park pitch – and is capable of housing up to 9,000 different product lines, spanning across almost every product in the IKEA range.

IKEA expects the distribution centre to be making more than 300,000 deliveries in the first year of operation, with that figure almost doubling to nearly 600,000 within five years. Eventually the plan is to be able to deliver up to three million items a year from the centre.

“The opening of Ireland’s first IKEA distribution centre will greatly benefit our customers through faster and more reliable deliveries,” said Jakob Bertilsson, Country Customer Fulfilment Manager, IKEA Ireland and UK. “It marks a key step in our ambitious expansion plans across Ireland. We remain committed to – and are continually investing in – the future of our physical store in Dublin, but we want people to enjoy the IKEA experience no matter where they choose to engage with us, whether through our full-size store, plan and order points, or online. This new distribution centre will greatly enable this, by increasing availability of our products and reducing lead times,” he added.

Minister of State for Business, Employment and Retail, Emer Higgins TD, said: “IKEA’s new distribution centre in Rathcoole will provide a boost for the local economy, creating 120 new jobs. It is also positive news for its customers, significantly reducing IKEA’s delivery times and enhancing accessibility for its Irish customers. This state-of-the-art facility is also a testament of IKEA’s unwavering commitment to sustainability. This building is one of the most energy efficient logistic facilities in Ireland and will support IKEA’s transition to 100% zero emission deliveries by August 2025. There is no doubt IKEA’s dedication to become climate positive sets a commendable standard for the entire retail industry.”

The opening in Dublin comes almost one year after IKEA opened it 452,000 sqft customer distribution centre in Dartford, Kent – which created 300 jobs and is capable of delivering almost one million orders annually across London and the South East of England.

Reducing greenhouse gas emissions

This new distribution centre also underscores IKEA’s firm commitment to sustainability. The building is one of the most sustainable and energy-efficient logistics facilities in Ireland. It has a Building Energy Rating (BER) of A2 and includes features like rainwater harvesting and roof-based solar panels.

IKEA is also transitioning to exclusive zero emission home deliveries, which together with locating the distribution centre closer to its customers, will result in significant reduction in CO2 emissions and more sustainable deliveries.

From today, customers with Dublin Eircodes will receive their home deliveries in zero-emission vehicles. IKEA has committed to ensuring all deliveries to customers across Ireland will be exclusively in zero-emission vehicles by August 2025.

As the first step to advance towards this goal, 17 electric vans will deliver IKEA goods across the country, with the number of zero emissions vehicles doubling by August 2025. As of now, two zero emission vehicles will be based in Cork, two in Athlone, four at the Ballymun store, and nine at the new distribution centre. These 17 zero emission vans will replace diesel delivery vehicles, resulting in an estimated annual saving of 283,000 litres of diesel, equivalent to reducing carbon dioxide (CO2) emissions by 750 tonnes per year[i].

To support the transition to zero emission deliveries, IKEA has established an extensive electric vehicle charging network at the distribution centre, comprising of three rapid charge points for quick top-ups and 20 overnight charging points for full recharges.

IKEA’s 8MW wind farm near Manorhamilton, Co. Leitrim, will also support the retailer’s transition to zero-emission deliveries and use of 100% renewable energy to power the distribution centre and IKEA’s flagship store in Ballymun, Dublin. It is projected that the wind farm produces about twice the amount of electricity required by the new distribution centre and the Ballymun store.

Furthermore, to secure even more renewable energy for the future, Ingka Investments, the investment arm of the company, has invested in a 10GW offshore wind project portfolio in Ireland and UK.

“The opening of this new distribution centre not only demonstrates IKEA’s desire to become more accessible to our customers in Ireland, but also our commitment to sustainability and innovation,” said Marsha Smith, Deputy CEO of IKEA Ireland and UK. “IKEA is committed to the Paris Agreement and to helping limit the global temperature rise to 1.5°C above pre-industrial levels. By transitioning to zero emission deliveries and having an energy efficient distribution centre, we are playing our part in protecting the planet, and taking another significant step in our journey to becoming a climate positive business,” she added.

The launch of the logistics facility is operated by logistics firm and longstanding IKEA service provider, Wincanton.

James Wroath, CEO at Wincanton, added: “Wincanton is excited to mark this key milestone in the expansion of IKEA in Ireland, who will benefit from our unrivalled expertise and proven operational excellence in eFulfilment. The opening of this new, state-of-the-art distribution centre just outside of Dublin further strengthens a partnership focused on our shared goals of meeting IKEA’s customers’ needs quicker than ever before.”

Deliveries will be carried out by XPO Logistics, supporting IKEA on its journey to only deliver by zero-emission vehicles.

Dan Myers, Managing Director for UK and Ireland at XPO Logistics, said: “This is a huge milestone for IKEA in what is an important market for the business. The investment is a demonstration of IKEA’s confidence in Ireland. As a long term partner, we are committed to working together to create a better everyday life for many people which is also sustainable and aligned with our combined environmental commitments.”

Two New Irish Depots for Pallet Pooler

Improve Supply Chain Resilience in Infrastructure Project Delivery

Posted on 4 April, 202431 July, 2025 by David Priestman

Major infrastructure projects rely on supply chains being resilient in the face of unexpected challenges. A UK Office for National Statistics (ONS) report revealed that around 10% of businesses with ten or more employees experienced disruptions to the global supply chain.

A disrupted supply chain can result in delays and increased costs, so strengthening it is crucial to delivery. Wincanton, a leading logistics partner that provides solutions for the infrastructure sector, offers expert insight into how incorporating emerging technology into processes can help add more resilience and how seamless they can make infrastructure projects.

Visibility of materials: real-time updates and visibility

Many components are involved in the infrastructure industry, especially when it comes to the logistics and availability of materials. Having real-time updates and visibility to track where they are and their estimated time of arrival (ETAs) can help keep projects on track for delivery, which prevents going over budget or delaying timelines.

This technology is one part of a wider digital transport solution for tracking and reporting to boost supply chain resilience. The concept involves using multiple devices within a single network for a greater sense of transparency throughout. Project managers and stakeholders alike can then monitor the locations and conditions of the materials to keep everything on track.

As a result, strategic planning can be done using data-driven decisions, as all the information is collected in one place and is easily accessible. Not only can this mean that reporting, reordering, or returning materials or equipment is made easier, but you can also ensure that the resources being ordered are of the quality you need.

Supplier coordination

Infrastructure projects often involve coordinating with many different suppliers to ensure that everything is delivered in a timely fashion. This means finding ways of fostering more collaboration between these suppliers can help ensure seamless procedures, and the advancements in technology and their accessibility can offer lots to the industry.

Collaborative software and cloud-based tech and platforms offer real-time connection and communication between businesses that can improve synchronicity. These systems also open possibilities through data sharing, so new plans or invoices can be sent, signed, and returned in good time, subsequently reducing delays from admin.

Impacts to the environment: tracking and management

One area that infrastructure as an industry must continue to focus on making improvements is within the tracking of emissions and waste created during projects. Sustainability, consciousness, and accountability surrounding environmental practices are becoming more prevalent, particularly around how responsible they respond to it and the measures taken to improve and manage it.

Utilising technology can simplify measuring and tracking the emissions produced by a project while also enabling the retrieval of relevant data. By introducing sensors and systems to monitor carbon emissions, tech can manage emissions and waste more effectively. These tools can also track how the materials used are contributing to the overall carbon footprint in order to reduce the amount of waste generated. Not only does this help keep projects running on-time, on-budget and within regulatory frameworks, enhancing the reputation of the sector for project delivery.

Much like many other elements of the infrastructure industry, implementing technology into the supply chain is pertinent to improving its resilience. The benefits it provides offer infrastructure projects of all sizes more transparency and connectivity, so no matter how complex they are, the supply chain will be resilient enough to withstand their demands.

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GXO Trumps CEVA’s Wincanton Offer

Posted on 4 March, 20247 August, 2025 by Keith McKinley

Wincanton Logistics Directors are now supporting a £762m takeover offer from the American third party logistics company GXO and have withdrawn their backing for a rival bid from CEVA Logistics.

Wincanton said on Friday that directors intended to recommend unanimously an offer of 605p a share made by GXO on Thursday. In the latest twist in the takeover battle, the Wincanton board withdrew their backing for an increased and final cash offer from Marseille-based CEVA Logistics at 480p a share. The GXO offer is pitched at a 29% premium to the record high share price of 470p reached during the period to 18 January, the last business day before Wincanton received a £567m bid from CEVA.

Currently listed on the London Stock Exchange, Wincanton is a leading supply chain partner for British and Irish business, and a trusted partner to many of the UK and Ireland’s most recognisable brands and influential public bodies. Wincanton provides business critical services and takes care of all customers’ supply chain needs and a range of outsourced and integrated supply chain solutions, across four sectors: efulfilment; Grocery & Consumer; General Merchandise; and Public & Industrial.

With almost 100 years’ heritage, Wincanton’s 20,300-strong team operates from more than 170 sites across the country, responsible for 8,500 vehicles. For FY23, Wincanton generated revenue of £1,462 million, underlying EBITDA of £121.9 million.

GXO Trumps CEVA

CMA CGM provided this statement to Logistics Business:

On 19 January 2024, the boards of directors of Wincanton plc (“Wincanton”) and CEVA Logistics UK Rose Limited (“CEVA”), a wholly-owned subsidiary of CEVA Logistics S.A. (“CEVA Logistics”), itself a subsidiary of CMA CGM S.A. (“CMA CGM”), made an announcement pursuant to Rule 2.7 of the Code that they had reached agreement on the terms and conditions of a recommended cash offer for the entire issued and to be issued ordinary share capital of Wincanton by CEVA (the “Acquisition”), to be implemented by means of a scheme of arrangement under Part 26 of the Companies Act 2006 (the “Scheme”).

The scheme document in respect of the Acquisition (the “Scheme Document”) was published and made available to Wincanton Shareholders on 15 February 2024. A supplementary announcement to the Scheme Document was then published on 26 February 2024 pursuant to which CEVA announced the terms of an Increased and Final Offer (as defined therein) (the “Supplementary Scheme Announcement”). CEVA reserved the right to increase the Increased and Final Offer Price (as defined in the Supplementary Scheme Announcement) if a competing offer was made for Wincanton.

On 29 February 2024 a competing offer was announced for Wincanton. On 1 March 2024 the Wincanton Directors announced that they no longer recommend the Increased and Final Offer.
Following the Wincanton Directors’ change in recommendation, in accordance with Note 2 on Rule 32.2 of the Takeover Code, CEVA confirms that it will not set aside the no price increase statement in the Supplementary Scheme Announcement. Furthermore, CEVA will not switch to a takeover offer (as defined in section 974 of the Companies Act 2006) in respect of Wincanton. It is CEVA’s intention that the Increased and Final Offer will lapse in due course.

CEVA felt that the Increased and Final Offer represented a very attractive opportunity for all Wincanton stakeholders, notably its employees, clients and the Wincanton Shareholders.
As a global leader, CMA CGM will continue deploying its growth roadmap, leveraging its clear business strategy and very robust balance sheet, while always maintaining a clear focus on value creation with financial discipline in any acquisition.

CEVA Logistics and CMA CGM are committed to serving their clients and growing their presence in the United Kingdom which remains a core market for the CMA CGM group.
This announcement should be read in conjunction with the Scheme Document and the Supplementary Scheme Announcement. Capitalised terms used but not defined in this announcement have the meanings given to them in the Scheme Document.

Wincanton chairman, Sir Martin Read, said: “Under the current management team, we have made positive progress and ensured that Wincanton is at the forefront of logistics innovation. The board of Wincanton is pleased that GXO recognises the very significant value inherent in this business and intends to recommend the offer to shareholders for their consideration.”

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Sexify Logistics

Posted on 23 February, 202431 July, 2025 by David Priestman

Red Bull’s Formula One HQ in Milton Keynes is an appropriate and impressive backdrop to learn why data is fuel in logistics. David Priestman attended Dexory’s Supply Chain Fast Track conference.

High performance in logistics can be maintained by extracting insights from data and taking practical steps. “Data itself has no value,” states Rob Smedley, former Ferrari, Jordan and Williams F1 race engineer, “insight is everything. Complexity requires having a data strategy.” Warehouses may be less glamorous than race tracks, but they are also hubs of innovation.

Polycrisis logistics

When multiple supply chain disruptive events happen concurrently how can they be tackled? “Resilience planning is key,” says Mike Fahy, CEO of Neovia, a contract logistics provider operating in 20 countries and with 80 hub facilities and 8000 employees. The 3PL specialises in service parts logistics for automotive, industrial and tech customers, formerly being Caterpillar Logistics Services.

Fahy advises logisticians to tackle ‘polycrises’ by multi-sourcing, embracing technology and strong cybersecurity. “We’re not back to just-in-time yet, after the pandemic. We’re still at just-in-case for supply. Warehouse space is relaxing a bit, depending on the location.” Neovia use Dexory to create a ‘digital twin’ of each warehouse, providing visualization and interpretation of inventory stock. For example, the Dexory View dashboard enables pick face analysis of volumes.

Neovia use other tech, like Protex AI’s warehouse CCTV system, which reduced safety incidents by 80%. “New tech creates disruption,” Fahy emphasises, “being part of change is key.” He also praised Athingz – an autonomous supply chain service utilising machine learning to aid sales inventory optimisation, planning and execution. Real-time analytics with a virtual control tower helps forecasting freight lanes, both inbound and outbound. Extended reality, or VR, is used by Neovia for training, using tech from Elm Park Labs. Apple’s Vision Pro is tipped by Fahy to become a handy tool.

Supply chain design, of the number and location of distribution centres, leads to a tech-based materials handling approach. Simulation can be used prior to construction to study the average flow, slow days and peak operations. “Maximising cubic optimisation is key,” according to Fahy, and robotics is paramount. His company are piloting self-driven HGV lorries, remote driving of warehouse reach trucks and remote monitoring of assets.

Visibility gap

Only 6% of supply chain managers claim to have full global visibility. Gaps can lead to out-of-stock or over-stocking issues. The distribution centre is where some visibility is lost, due to damage, loss, theft or errors that occur. The visibility gap is an intelligence gap. An estimated 6500 hours per year can be spent on stock checks for a typical DC, say Dexory. Starting accuracy for their customers is 91-95%, with 24 minutes on average taken to resolve discrepancies. Dexory’s solution claims to increase accuracy to over 99%, which is better than warehouse drones can achieve.
GE Appliances are one of many manufacturers using temporary, overflow warehouses. “That can make it harder to maintain accuracy,” Harry Chase, GE Senior Director for Central Materials, says. “The quality and timeliness of data is crucial.” Dexory can be used for better slotting and stock consolidation, by freeing-up space and identifying bottlenecks.

Machine help?

Generative AI may create new strategies in logistics, for example in transport routing. Chris Coote of Dexory says AI is less intuitive than a human but provides fast answers and concepts. “Embrace limitless possibilities to build a smarter, safer ecosystem in the DC,” he exhorts.

Wincanton, a 99 year-old British third party logistics operator with 21000 staff, are in the process of being acquired by CEVA Logistics, part of the giant French shipping line CMA CGM. Paul Durkin, Chief Customer and Innovation Officer, has a practical view of robotics and automation. Companies should invest in tech, he argues, because labour costs are rising, automation costs are falling and there is a demand for short lead times in logistics. “There’s no longer a long payback time for this equipment,” he says, looking for a 20% return of capital deployed.

The downsides to such investment are the interest on capital expenditure, competing demands for investment and the proliferation of software and hardware, which makes it difficult to be certain what to purchase. “Retail customers spend on their ‘front of house’ (shops and stores). We’re ‘back of house’,” adds Durkin. Wincanton has re-organised itself to lean towards IT and technology, seeing 3PL as a service. Owning the IP of software in-house is important for the company. “We can’t rely on being an asset-based business, with just trucks and sheds,” he adds. Automation can solve customer problems. “Commercialize it. Value creation leads to long-term success.”

Industrial collaboration is a good thing, according to Durkin, who was speaking on the day the CEVA deal was being finalised. “There’s room for it. Warehouses haven’t evolved that much. We all need to accelerate our journey and get slicker. Wincanton need 30 upgrade projects a year, but only have the bandwidth for half that.“

Generation logistics

Getting the organization’s design right is key. “Size isn’t everything. Start small with automation and robotics, get used to it, be prepared to fail,” he advises. Wincanton work with smaller, nimble suppliers, including Dexory. “Now we have proof-of-concept on-site we can invest further. There are no guarantees, but we have created headroom.”

Automation and robotics can inspire colleagues and attract young people into the sector. It can lead to upskilling of existing staff. ‘Generation logistics’ is a slogan aimed to elevate the industry, make it sexier. New entrants to the market, like Hived and everstox, backed with venture capital by investors including Maersk, are on a fast track, fuelled by data to innovate and increase competition in logistics. Our industry is en vogue. Make hay and rejoice.

Dexory Announces new Investors