Q&A: Abbas Tolouee & David Bailey, Arvato

Why It Matters

Retailers that adopt Arvato’s partner‑first, technology‑heavy model can turn fulfilment into a competitive advantage, reducing friction and improving resilience in a fast‑moving UK e‑commerce market.

Key Takeaways

• AutoStore upgrade lifted capacity 30% and picking speed 53%
• Arvato designs operations around the client’s delivery promise
• AI forecasting and digital twins boost planning accuracy and workforce efficiency
• UK e‑commerce maturity forces retailers to prioritize frictionless fulfilment
• Arvato plans further UK warehouse expansion and automation through 2030

Pulse Analysis

The UK’s e‑commerce landscape is among the most mature in Europe, with roughly one‑third of retail sales now online. This maturity translates into razor‑thin margins on delivery speed, transparency, and returns handling. As consumer expectations tighten, brands are turning to third‑party logistics providers that can embed the customer promise into the very architecture of fulfilment. Arvato’s approach—starting with delivery expectations and working backwards—aligns inventory placement, carrier selection, and customs compliance with the end‑user experience, delivering measurable gains in on‑time‑in‑full (OTIF) performance and cost‑to‑serve.

Automation is the engine driving those gains. The recent AutoStore deployment at Arvato’s Hams Hall site added 165 R5 robots and expanded bin capacity from 65,000 to 87,600, supporting nearly 1.2 million stored units. The system now processes over 26,000 orders per day, a 53% uplift versus manual picking, and lifts overall warehouse throughput by more than 30%. Coupled with AI‑led demand forecasting and digital‑twin simulations, the technology stack provides real‑time visibility into inventory health, enabling rapid scaling during spikes such as social‑media‑driven product launches.

Looking ahead to 2030, Arvato is betting on a blend of physical expansion and intelligent automation to meet the UK market’s evolving challenges. Post‑Brexit regulatory complexity and volatile consumer behaviour demand a resilient, locally‑tuned fulfilment network. By investing in additional warehouse sites, expanding robotic capacity, and deepening partnerships with carriers and technology firms, Arvato aims to offer UK brands a seamless cross‑border gateway. The firm’s emphasis on AI forecasting, digital twins, and a partnership‑first ethos positions it to help retailers transform logistics from a cost centre into a strategic growth lever.