DHL eCommerce opens parcel hub as part of ambitious eComm plan

THE HUB forms part of DHL eCommerce’s £482m investment in the UK announced in 2022, aimed at increasing capacity and setting a new benchmark in parcel automation.

Logistics Matters has tracked the build and practical completion of the site over the last few years.

DHL is building for a strong long term eComm market.

DHL eCommerce CEO Pablo Ciano, says: “More than any other European market, eCommerce in the UK is booming and is expected to reach a £176 billion turnover by 2029. With our latest addition to our network, we are significantly expanding our processing and sorting capacity, ensuring we are perfectly equipped to address our customers’ needs and support their business growth.”

There is controversy over the growth of online retail in the UK.

According to a report from Auctane and Retail Economics, the eCommerce sector has hit an inflection point with online penetration as a total of the retail sector in the UK now lower than pre-pandemic projections.

Online has accounted for 27% of total retail sales in the UK from 2022 to 2024.

However, the pre-pandemic long term growth trend anticipated that online penetration would be 29% by 2024.

The pandemic threw the trend temporarily into hyperdrive with online retail peaking at 31% in 2021.

Retail focus

DHL eCommerce UK CEO Stuart Hill has a background in UK retail, and started out with John Lewis, working also with ASOS and Matches Fashion.

“It is a challenging time for retailers, the drops from December to January are some of the biggest retailers have seen.

“We want to wear the shoes of the retailer and develop successful partnerships with them.

“We will see year on year growth in parcel volumes. The main areas of growth are B2B and international outbound. SMEs in the UK also have massive growth potential, with our tracking and Apps important in servicing this market.”

The Coventry site features a 48-door cross-dock facility and secure bonded storage as well as customs capabilities to support the expansion of international trade.

Automation

The huge sorter system uses a switch to differentiation parcels into three main categories – conveyable, small, and out of gauge.

Fives provided the huge sortation system for DHL eCommerce, with Caljan conveyors used to transport parcels in and out of trailers in the loading docks. 

DHL said it is examining the use of robotic handling of parcels but is finding it challenging at the moment because of the cost and the varied nature of the parcels.

The hub features an extensive cross-dock facility, which is made possible by a mezzanine hung from the ceiling, so there would be no pillars causing obstruction.

Staff retention

DHL eCommerce head of operational support Richard Wrenham added that staff retention was a key priority when he was designing the facility with partner SEGRO.

“We wanted a leading and inclusive hub for staff, and we have achieved that, with a garden for staff to use, excellent canteen facility, lockers for staff and gender neutral toilet options.

“We typically have 350 employees per shift and it is not always an easy job, so we want to value and retain our staff giving them long-term jobs.”

Sustainability

Developed with sustainability at the fore, the site has achieved BREEAM Excellent status, thanks to features that minimise its environmental impact including 7,000m² of solar panels, LED lighting, rainwater harvesting and landscaping to protect the area’s natural biodiversity. DHL has also equipped the site with 120 EV charging points for both cars and LGVs.