Growth In Online Parcel Delivery Orders Spurs Logistics Investment
In the wake of tremendous spike in online parcel delivery orders
, many companies are announcing their plans to increase investment in their logistics department, while others are following them. Recently, Parcelforce revealed its plans to build new distribution centres and depots throughout the United Kingdom and hire 1,000 new recruits to increase its workforce over the next 3 years.The move was spurred by the growth in e-commerce, which resulted in Parcelforce making over 66 million individual deliveries last year.
"Our strategy is to convert the rise in parcel volumes into profitable growth. That means becoming a much more customer-focused company being run on commercial lines and investing in new, vital technology," commented Moya Greene- chief executive of Royal Mail. Notably, Royal Mail is the sister company of Parcelforce.
The parcel service DPD is following the footsteps of Parcelforce and has unveiled its plans to spend about 100 million on building of a new sorting hub in Midlands. Besides this, the parcel service DPD also plans to further expend 20 million for revamping its two other depots. The move came after the company generated above 70 million in new business post the launch of Predict time slot feature in March 2010, as per Metro.
"This investment will allow us to expand our network capacity further to meet the demands from our customers and maintain our very high service standards. The online retail market is expanding rapidly with consumers now prepared to buy a much wider range of goods online. With Predict we have a product which gives retailers greater confidence that their goods can be delivered both on time and straight into the hands of their customers. That helps them improve their customer service and helps encourage more repeat purchases," said the Chief executive Dwain McDonald.
In the meantime, research study from Jones Lang LaSalle indicated a slight dip in the European logistics investments and industrial assets during Q3 in comparison to the previous 3month period. This plunge was resulted mainly due to the weaker Q1 and ongoing limited supply of key products, as per the report.
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