I think we need to remind ourselves of the 3 types of traffic here for supply chain distribution.
Good post…
1. Manufacturer to main distribution warehouse. This can be within the UK or via the ports into the UK. Rail freight should have a major role to play in this, in fact all but the smallest of goods should be more suited to Rail.
Indeed and rail does play a big role. If you drink wine, or certain types of French bottled water (or Highland spring for that matter!), or buy a widescreen tv, there’s a better than even chance it has been on a train from port or factory to Distribution Centre.
2. Inter warehouse distribution, stocking up regional warehouses. Rail could have a role to play here - this is basically with Amazon example what we're talking about here but also looking at not only your DHL/DPD parcel traffic but the pallet line single pallet type distribution. It feels like rail has a role to play but the challenge is can it be flexible enough, Varamis are trying to prove it can and also can it be reliable enough, engineering works cannot suddenly stop the service for a night for example as these parcel companies are working on next day delivery.
It depends on the type of logistics operation. Bulk flows - eg Ambient products from a central DC to a group of stores far enough away, with a Day A for Day C delivery are good for rail. This is what Tescos do. Overnight next day guaranteed parcels only works for long distances with big flows and (crucially) needs both ends very adjacent to a DC. Hence Royal Mail’s postal trains from Willesden - Warrington - Sheildmuir. Without nearby DCs or long distances, rail cannot compete with road, even for larger flows.
3. Final mile type - to the door - rail has no role here, it's clearly white van man territory.
White van person, please
The USA logistics model and UK logistics are completely different. Apart from.the name on the side they have pretty much nothing in common.
Actually, not so. AIUI, Amazon’s U.K. logistics model was set up by U.K. based logistics specialists who used best practice at the time - the U.K. is (believe it or not) world renowned for having the most efficient retail logistics operation on the planet. When Amazon HQ saw the outputs in terms of delivery costs per unit, they invited the U.K. team over to the States to show them how they did it. The same model was then rolled out across Europe, and also in the US. The actual method of transport varies in the US - much more flying - but the network, DC layout, picking systems etc are based on the U.K. model.
(I’ve been told this by someone who knows UK logistics inside out, so have no reason to disbelieve it, however I’ve never seen any hard evidence that some people on these pages like to see. I’m not so sure that Amazon would like to advertise their logistics operations anyway).