6 December 2011

Carrier and home delivery specialist Yodel is poised to embark on the final stage of the integration of its two constituent parts (known formerly as Home Delivery Network and DHL Domestic).

Between January and March of 2012 it is proposing a reduction of its depot network from just over 100 sites to around 57, closing a total of 45. It is currently in consultation with the staff affected.

Chief executive Jonathan Smith told F&E this step marks a vital stage in the creation of a fully-integrated Yodel business. "It will bring us back to profitability when our financial year ends in July," he said, "and pave the way for future growth."

 

He says the IT integration of the two networks, completed earlier this year (F&E, last issue), was an essential step in this process. "It means that from January we will be able to route consignments from both sides of the business through any depot." This will bring a missing element of flexibility to the business, he says.

At the time of the merger, the DHL Domestic side of the business was reported to have 4,700 staff, five hubs and 71 service centres, but Yodel has already rationalised its hub structure, emerging with four main sort centres.

Most of the retained depots are likely to be former DHL Domestic sites, but Smith says the selection process has been purely practical, taking account of factors such as their running costs, location and proximity to customers.

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