Yodel invests to support continued growth in parcel volumes
With its parcel volumes increasing by 13 percent year on year, UK carrier Yodel has invested in four new, strategically located sites for its service centre network providing additional capacity throughout the year, including the peak Christmas period.
Over the past 12 months, the carrier has opened new larger service centres in Northampton, Selby and Farnborough, with a fourth opening in May in Alfreton, Derbyshire. As a result of these investments, Yodel has created over 160 new jobs at the service centres for drivers, sorters, administrators and support workers.
Further sites are planned to be opened in 2015. The investment will enhance service levels throughout the UK with the new locations chosen for their proximity to major motorways and town centres. This will ensure Yodel has easy access to all of Britain’s town and cities, bringing great benefit to existing and potential clients and consumers across the country. Yodel’s new service centre strategy also works towards removing the requirement for temporary additional satellite sites during peak times, such as Christmas, when parcel volumes increase dramatically.
Dick Stead, executive chairman of Yodel, said “These recent investments form part of a phased plan to increase the capacity and quality of Yodel’s service centre infrastructure, evidence of our long term aims within the UK parcel market. The developments demonstrate the on-going commitment of our Shareholders and are a vote of confidence for the team here who continuously strive to deliver a high quality service to our clients and their customers.”
Fully operational by the end of July 2015, the site in Alfreton, Derbyshire will be able to handle 34,000 parcels per day, allowing for business and volume growth in the Midlands region.
Selby and Farnborough became operational in October 2014. The Selby site, located just off the Selby bypass, includes a 66,000 sq ft distribution facility. The centre currently handles 10,500 parcels per day and undergoing investment to raise its capacity to 22,000 parcels per day.
The new service centre at Farnborough, which supports deliveries into Yodel’s South East network, is anticipated to deliver over 22,000 parcels a day in the run up to Christmas with new jobs created across management, sortation, and administration with further driving based opportunities as the site develops.
The Northampton service centre, which opened in September 2014, currently processes an average of 16,000 parcels daily and has capacity to handle up to 35,000 parcels per day.
The multi million pound major investment programme extends across Yodel’s service and sort centre network including significant upgrades to IT and mechanical handling equipment.
Yodel’s network of service centres receives trailers of parcels from Yodel’s three central sorts, strategically sited at Shaw, Wednesbury and Hatfield. Parcels are then processed and sent out for delivery.
For an exclusive interview with Yodel’s Dick Stead, watch out for the July issue of Supply Chain Digital.
Biden establishes Supply Chain Disruptions Task Force
The US government is to establish a new body with the express purpose of addressing imbalances and other supply chain concerns highlighted in a review of the sector, ordered by President Joe Biden shortly after his inauguration.
The Supply Chain Disruptions Task Force will “focus on areas where a mismatch between supply and demand has been evident,” the White House said. The division will be headed up by the Secretaries of Commerce, Transportation, and Agriculture, and will focus on housing construction, transportation, agriculture and food, and semiconductors - a drastic shortage of which has hit some of the US economy’s biggest industries in consumer technology and vehicle manufacturing.
“The Task Force will bring the full capacity of the federal government to address near-term supply/demand mismatches. It will convene stakeholders to diagnose problems and surface solutions - large and small, public or private - that could help alleviate bottlenecks and supply constraints,” the White House said.
In late February, President Biden ordered a 100 day review of the supply chain across the key areas of medicine, raw materials and agriculture, the findings of which were released this week. While the COVID-19 health crisis had a deleterious effect on the nation’s supply chain, the published assessment of findings says the root cause runs much deeper. The review concludes that “decades of underinvestment”, alongside public policy choices that favour quarterly results and short-term solutions, have left the system “fragile”.
In response, the administration aims to address four key issues head on, strengthening its position in health and medicine, sustainable and alternative energy, critical mineral mining and processing, and computer chips.
Support domestic production of critical medicines
- A syndicate of public and private entities will jointly work towards manufacturing and onshoring of essential medical suppliers, beginning with a list of 50-100 “critical drugs” defined by the Food and Drug Administration.
- The consortium will be led by the Department of Health and Human Services, which will commit an initial $60m towards the development of a “novel platform technologies to increase domestic manufacturing capacity for API”.
- The aim is to increase domestic production and reduce the reliance upon global supply chains, particularly with regards to medications in short supply.
Secure an end-to-end domestic supply chain for advanced batteries
- The Department of Energy will publish a ‘National Blueprint for Lithium Batteries’, beginning a 10 year plan to "develop a domestic lithium battery supply chain that combats the climate crisis by creating good-paying clean energy jobs across America”.
- The effort will leverage billions in funding “to finance key strategic areas of development and fill deficits in the domestic supply chain capacity”.
Invest in sustainable domestic and international production and processing of critical minerals
- An interdepartmental group will be established by the Department of Interior to identify sites where critical minerals can be produced and processed within US borders. It will collaborate with businesses, states, tribal nations and stockholders to “expand sustainable, responsible critical minerals production and processing in the United States”.
- The group will also identify where regulations may need to be updated to ensure new mining and processing “meets strong standards”.
Partner with industry, allies, and partners to address semiconductor shortages
- The Department of Commerce will increase its partnership with industry to support further investment in R&D and production of semiconductor chips. The White House says its aim will be to “facilitate information flow between semiconductor producers and suppliers and end-users”, improving transparency and data sharing.
- Enhanced relationships with foreign allies, including Japan and South Korea will also be strengthened with the express proposed of increasing chip output, promoting further investment in the sector and “to promote fair semiconductor chip allocations”.