Delamode International Logistics, part of Xpediator Plc shape the future of supply chains through the deployment of digital technology and tailored retail logistics solutions, resulting in the delivery of high-quality services via our port-centric distribution centres.
Mike Thomas, Client Services Director at Delamode International Logistics, speaks to Warehouse & Logistics News.
Since being acquired by Xpediator Plc 4 years ago – how has transition from Import Services to Delamode International Logistics gone?
The transition has been smooth, helped by the wealth of experience and a great team which has supported the process. Delamode International Logistics is the warehousing division of Xpediator and post, acquisition, moved their divisional companies into Import Services’ business entity, to gain the established goodwill from a long and successful trading history; before rebranding under a uniform Delamode banner.
It has also been gratifying to see colleagues take up career roles within the Delamode division and wider business, where expertise and experience has added value to the Group’s acquisition.
Tell us how Delamode are growing?
Revenue growth is strong, propelled by both volume and necessary pricing adjustments. The latter driven by contending with post Brexit and Pandemic supply chain cost increases and wage inflation. DIL’s organic growth is exciting with expansion of the container port site adding 30,000 pallet locations mid 2021 and development of DIL’s first logistics hub on the Continent served by daily shuttle operations, operating between the UK and European markets serving both markets.
What makes Delamode unique in your industry and what solutions do Delamode offer Clients and their customers?
High volume order processing, fully bonded storage facilities, B2B pre-retail services, dynamic data rich access to routing guides and processes, plus a Client portal system are recognised defining factors. To complement Southampton’s successful port-centric model, we have also have built expertise in B2C, from the DIL Braintree DC.
Inbound and outbound logistics services enable management of our Clients’ supply chains from sourcing in the FE, to delivery shelf/consumer across the UK and Continental Europe. Amazon is a key part of our Clients’ customer portfolios and we have worked hard to shape automated systems which enable our Clients to supply Amazon FC’s right across the UK and Continental Europe, efficiently.
What do you see as the biggest opportunities in the coming 12 months for Delamode?
Developing our successful partnership with EDCR in Holland who have acted as fiscal representatives for our Clients in Phase 1 of our Continental development, DIL is now building a state of the art 31,000 pallet DC, which will open in Spring 2023. This means one IT system and Client Services team with uniform operating systems across two principal, bonded logistics hubs [Southampton and Roosendaal] enabling seamless services in two different Customs Jurisdictions. This is a compelling business model with tremendous development potential for both DIL and the wider Group as we also link to the Group’s Central European businesses encompassing freight forwarding, transport services, warehousing and pallet network distribution.
What are the biggest challenges facing Delamode in the coming 12 months?
Cost to serve and hence our challenge is the drive for productivity. We have employed a third-party study to ensure our processes are bench-marked against the best industry standards, in terms of productivity today and where we can reach, setting a pathway for rationalisation, continued skills training and investment in smarter automation to meet our objectives, where practicable.
Why Roosendaal as a location?
Roosendaal is an excellent logistics location in Holland which is the recognised logistics gateway to Continental Europe. Roosendaal is linked with an excellent European motorway system and proximate waterborne transport links for barge containers discharged at Rotterdam. In fact the site will be linked by three container ports; Southampton in the UK via bonded daily road shuttle, Rotterdam and Antwerp. This builds resilience into our Clients and prospective Clients’ supply chains.
Was this decision purely a reaction to Brexit?
We planned a European logistics hub when the results of the 2016 referendum were known. As we always look to the future of retail logistics, the benefits afforded by a port-centric warehouse in Southampton, required a complementary location to serve Europe and this was set as a strategic business objective, in two phases. Phase 1 was attained in partnership with EDCR launching January 2021 with a bonded shuttle service carrying picked orders from Southampton and clearing them via EDCR in Roosendaal for our Southampton traffic management team to distribute from Roosendaal to Continental customers. The next step from January 2022 was opening a DIL pilot 4,000 pallet chamber within EDCR’s new distribution centre in Roosendaal. From this first stock holding for our Clients we have tested the ability to replicate operational processes and skills with a trained team in Roosendaal.
Phase 2 is now the focus and our ultimate move creating a purpose-built facility, mirroring the new VNA operation in Southampton and to be driven by the same operating systems. The greenfield site construction commenced in July this year, with target completion date currently on schedule for May 23.
What set of solutions does a warehouse in Continental Europe provide?
Ultimately, speed of product to European retailers and consumers and supply chain resilience with ability to fulfil orders from both jurisdictions operating under a single system and single point of Client service.
What are the challenges in building a greenfield distribution centre from scratch in Holland?
Any construction being undertaken abroad requires local support, knowledge and expertise.
Working together with our Group Estate Director and leveraging the trusted partnership forged with EDCR, we have been fortunate in introductions to a great project contractor and set of facility management service teams, all ensuring design, planning, and construction is managed for us locally, with regular monitoring schedule and reciprocal visitations.
Operating teams have trained in Southampton and, in EDCR during Phase 1, with new career opportunities opening-up via this exciting new Continental development.
We are in the process of establishing Delamode International Logistics BV and have also engaged the new site manager, who will join us in January next year, to train in Southampton and then manage scale-up of his new operational team in Roosendaal.
Again local agencies provided the expertise required, to ensure an efficient and pleasing outcome to date.
How are your clients responding to the Roosendaal project?
This new site expansion cannot be on stream quick enough for our Clients who are adjusting to a post Brexit regime and set to continue expanding their sales across Continental European markets. As the proportion of sales moves to circa 50% of throughput split between the UK/EU and now with available scale to move the requisite critical mass of SKU’s, our Clients and prospective new Clients see Roosendall as the game-changer.
This new logistics hub will allow Continental European orders to be fulfilled either in Southampton or Roosendaal, or from both sites. The new hub will also enable a reduction in order cycle times, from order receipt, to delivery end-customer by at least 48 hours, compared to fulfilment from Southampton via shuttle service to Roosendaal. In terms of delivery to short lead times, and with focus on Vendor Time To Delivery, this is key metric driving replenishment orders, with agile response, generating business growth.
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