River Island, Mountain Warehouse sign Clipper Logistics deals, automation is key
The two major name retailers have signed deals with logistics specialist Clipper Logistics, with the details of the deals highlighting how important automation and omnichannel have become.
The company has announced new contracts with River Island and Mountain Warehouse and said that “together, these represent a significant step change in activity levels and will enhance earnings for the next financial year”.
The group has agreed in principle a new five-year open book contract with River Island to provide a comprehensive suite of logistics services at the retailer’s existing distribution centre in Milton Keynes. It already handles returns for the firm at the group's Ollerton distribution centre, but this contract “represents a significant extension of services, with Clipper set to provide a full range of logistics operations, including warehousing, distribution to high street stores, and e-fulfilment and returns management services". The new services will start mid-year.
But it’s more than just a standard logistics agreement. It means Clipper will “initiate a transformational programme to drive the customer's operations forward, developing an integrated omnichannel solution, and driving greater efficiency through the use of automation and robotics”.
It also has a new 10-year open book contract with outdoor retailer Mountain Warehouse to provide a full range of multi-channel logistics services, starting this spring.
Again, it comes with investment in automation and robotics to increase capacity in order to “to facilitate further growth for the customer”. The new contract will operate from Clipper's existing Peterborough distribution centre.
Operating seven days per week. Clipper will provide full end-to-end services to support Mountain Warehouse's multi-channel operations, including order fulfilment and returns management.
The two contracts should increase the logistics firm’s revenue by over £40 million on a full-year basis, and will be immediately earnings-enhancing from go-live.
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