SUPPLY CHAIN & LOGISTICS


Signed, sealed, delivered Focus


38


With the proportion of online retail in the UK increasing rapidly, businesses big and small have had to adapt and cater to their customers in more ways than ever. ERT hears from AO Logistics MD, David Ashwell, about how changes in demand have led to even greater business efficiency.


Electronics was one of the fastest growing sectors in terms of online sales during the pandemic, with particularly large growth amongst multichannel retailers. With the overall proportion of online retail in the UK increasing rapidly, businesses big and small have had to adapt.


As demand increased, many took the decision to invest in their logistics infrastructure. Online retail giant, AO, was no different. It currently has five distribution warehouses located between Crewe and Stoke, and it also operates from over 20 local depots known as ‘outbases’, which are situated across the country.


As a result, AO can deliver up to 98 per cent of postcodes in the UK every day of the week.


Here, David Ashwell, Managing Director of AO Logistics, explains to ERT the changes that have been made in recent years and how these will future-proof the business.


“The pandemic really proved just how resilient


our logistics network is,” he begins. “As demand increased, we took the decision to invest in our infrastructure and our operation now has over 1.5 million square foot of warehousing space. This means our goods-in capacity has risen by 100 per cent! “We have worked hard to forge strong relationships with our suppliers so that we can continue to offer a great delivery service to our customers, despite challenges.” AO’s deliveries are carefully planned the day before using clever tech that helps reduce the risk of drivers taking wrong turns and clocking up more miles than they need to. On the customer’s day of delivery, they will receive updates notifying them of when to expect their appliance.


Mr Ashwell adds: “We also make sure that all of our drivers have access to what3words, which makes it easier than ever to locate customers in rural areas. “On average, we have 1,000 AO vans on the road each day so that as many customers as possible can benefit from next-day delivery and a premium service.” AO’s two-person delivery teams are trained and certified to install both freestanding and integrated appliances – and they can take away old products and packaging to be recycled at its plant in Telford. “We are striving to make the delivery experience as hassle-free as possible,” says Mr Ashwell.


People power


“Our people are at the heart of everything we do, and they help us create what we call the ‘AO way,’” he continues. “We currently have over 300,000 five- star reviews on Trustpilot – a real testament to our amazing work force who go above and beyond for our customers every day. Our teams within logistics have contributed massively to this figure as it is our delivery drivers who are out meeting our customers on a day-to-day basis. “We’ve also got amazing teams of people in Supply Chain, Operations and Logistics across the company so we’ve been able to take the various sets of market data available to us and use these to forecast future trends. By massively increasing our warehouse capacity over the last 18 months, we’ve been able to successfully manage changing demand for products.” Mr Ashwell believes that in the next few years there will be a huge emphasis on making fulfilment and delivery


as sustainable as possible. And


sustainability is a key focus for AO as it continues to invest responsibly in its operations.


Building on the foundations of its recycling plant and other initiatives – like the acquisition of 10 CNG-powered vans earlier this year, which run entirely on biomethane, a reusable packaging solution called AO Armour, and carbon fibre vans (which help reduce the weight of the fleet and in turn the fuel consumption), Mr Ashwell confirms that the retailer will continue to reduce its carbon footprint in the years to come.


June 2022 ertonline.co.uk


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