City Link completes national hub upgrade to prepare for peak season
UK parcel carrier City Link has said it is set up to cope with the forthcoming Christmas peak, with its new automated sorting system now fully operational at its national hub in Coventry. The company said it has already begun to put the systems and resources in place to make sure this year’s peak season runs smoothly for retailers and business-to-business customers.
It is predicting continued growth in volumes, but also along with the risen popularity of online shopping, a “strong trend” towards consumers ordering larger, heavier items.
The company is seeing a 15% year-on-year increase in this kind of shipment.
It said the new sorting system at its national hub helps increase capacity by up to 50%, but one of its key advantages is its ability to handle larger items, up to 1.5m in length.
Efficiency should also be improved by high levels of scanning, City Link said.
City Link invested a seven-figure sum earlier this year in upgrading its sorting systems at the 150,000 sq ft Coventry hub, opting for technology provided by Caljan Rite Hite Ltd.
The company now says it has started reviewing the risks and likely issues it will face in this year’s Christmas peak, with its planning team looking to spread the volume more evenly through the network by transferring responsibility for certain post codes between facilities.
As well as the trend for larger items, City Link is planning for a continuing rise in popularity for Click and Collect services around the UK, where consumers can collect items purchased online at local retail branches.
“Gearing up”
Louise Whitehouse, Head of Network Support & Service, City Link commented: “We are gearing up for peak with the knowledge that there an emerging trend for larger consignments, and the expectation of another jump in online sales which always peak at Christmas.
“This year City Link has further invested in the necessary infrastructure, systems and enhanced services to meet these delivery challenges. An increase in larger, bulkier consignments being ordered on the Internet and the continuing rise in Click and Collect will be two of the main features of this year’s consumer ordering and delivery experience. As such we are well placed to ensure a high and consistent level of service with the detailed, advance planning we have carried out together with our new sortation system, equipment and product offerings.”
City Link said it had one of its most successful peak seasons ever last year.
E-commerce industry body IMRG said last week that the UK is on track to see 19% year-on-year volume growth in carrier-delivered orders, up to a total of 895m.
The trade association said July’s figures were higher than forecast, but it also said the level of missed deliveries, at 6.9% of all orders, was the highest since September 2013.
One theory was that this was caused by consumers or couriers being away on vacation. But Andrew Starkey, the head of e-Logistics at IMRG, said the issue was not seen the year before.
“This is therefore an area where retailers should examine their current performance to see if there is genuine issue,” he said.
