Leading UK logistics provider DX Group has opened another postal depot in Stafford. This depot was previously operated by Tuffnells Parcel Express Limited (Tuffnells).
DX Group provides delivery solutions, which include parcel freight, courier, and logistics services. Its services are available in the UK and Ireland. The business operates through two divisions, DE Freight and DX Express. The company’s experience spans almost half a century.
The company says that the new depot is situated at the Beacon Business Park, north-east of Stafford town. The 15,190 square-foot facility will improve operational efficiencies and enhance customer service levels.
This latest depot opening means DX Group has opened 13 of 15 Tuffnells depots. “It increases the capacity and capability of our Express Parcels operation, which is growing strongly, and delivers further efficiencies, environmental and customer service benefits,” says CEO Paul Ibbetson.
Tuffnells go into administration
Print Week reported in June that the delivery giant went into administration with most of its 2,200 staff being made redundant. Rick Harrison and Howard Smith from Interpath Advisory were jointly appointed as administrators. “Unfortunately, the highly competitive nature of the UK parcel delivery market, coupled with significant inflation across the company’s fixed cost base in recent times, has resulted in the company experiencing intense pressure on cash flow,” Harrison told the press in June.
Earlier this year, DX Group announced that it had reached an agreement over 15 sites operated by Tuffnells. The company stated in a press release that it had hired over 250 former employees of Tuffnells since the administrator was appointed. DX Group also announced it engaged with former customers of Tuffnells to provide continuity in delivery solutions and had taken on over 550 customers on mutually agreeable commercial terms.
Also read: The Impact of Inflation on Delivery Services
UK parcel delivery market
The UK’s parcel delivery took a knock last year. Royal Mail told Reuters that Inflation-hit consumers had cut back on online shopping.
Mordor Intelligence reports the UK courier, express, and parcel (CEP) market is growing with the increasing number of same-day delivery transactions. “The United Kingdom, along with Italy, has been the fastest-growing market in the European region, owing to the powerful digital trends that are driving the market. The key market players are continuously reinventing the post and parcel industry with technology-driven innovations,” reads the report.
The report adds that the growing internet penetration is shifting retail to the digital world. “The post and parcel companies are focusing on strategies to re-engineer their core businesses to meet the new face of rapidly expanding B2C parcel delivery, especially same-day delivery. The same-day strategy led by Amazon changed the pace of the delivery market and is becoming more widely offered.”
About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.