Holland & Barrett is to automate its Burton distribution centre, as part of its “multimillion-pound” modernisation of its supply chain.
H&B plans to install a new intelligent warehouse management system as well as ‘smart’ forklift technology aimed at improving the efficiency and speed in which deliveries are handled at the site. It will also dramatically increase capacity, through the installation of a robotic picking system called AutoStore.
AutoStore uses robots to pick products, which are then fulfilled by humans. As goods are stored in a grid system, rather than on shelves, it can increase warehouse capacity by as much as four times, without having to adapt or move the site.
H&B is working with its existing supply chain partner Toyota Material Handling Group, which will handle the refit of the site.
It’s the latest stage of a major supply chain overhaul announced by H&B owner LetterOne in January. The Burton site handles H&B’s retail and wholesale fulfilment. Shortly before the announcement in January, H&B transferred management of its e-commerce supply chain to THG Ingenuity for the next three years while it carries out the refit.
It’s not confirmed whether any roles will be affected as part of the latest proposals.
“We’re growing as a business and digital sales are a significant part of our business,” said Holland & Barrett CEO Anthony Houghton.
“We are investing in a new digital outbound system to support continued growth and meet the needs of our customers.”
As well as investing in its supply chain, Holland & Barrett has invested more than £70m into its store footprint and food offer over the last year.
In its latest accounts published at Companies House in July, pre-tax losses widened from £59.6m to £65.3m, mainly due to costs incurred by the investment.
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