Gazeley - Industrial Development - Milton Keynes, Nova MK Logistics Park
Date: 19 Jul 2006
The John Lewis Partnership's Department Store division have announced plans to open a £45 million automated Distribution Centre (DC) in Milton Keynes in 2009 at Gazeley and Land Securities' Nova MK logistics park development.
The new 650,000 sq ft (60,386 sq m) DC is a major part of the company's programme of supply chain investment, supporting the plans to open ten new shops in ten years, and accelerating improvements in productivity, availability and customer service.
Patrick Lewis, Supply Chain Director John Lewis, said: "To win in our market, we need to continually improve our service. For the supply chain this means improving availability and at the same time reducing our costs so that we can invest in front line service. This development gives us the space we need to increase the scale of our business, and allows us to provide better service to our shops and customers at a lower cost".
The DC's automation equipment will be provided by Knapp Logistik Automation GmbH, and will deliver the capability to cost effectively issue stock little and often, based on demand. It will also allow John Lewis to fulfil more items direct to customers from its central DCs, improving customer service and consolidating the company's position as a leading multi-channel retailer.
Mike Cogger, Managing Director of Knapp UK, said: "Knapp is delighted about this opportunity. The final design for the new DC is a direct result of the long term, intensive and close working partnership established between the Knapp and John Lewis project teams. "The system provides headroom for future store expansion and we believe the solution will provide an excellent service to John Lewis, in order that they in turn, meet the needs of the customer."
The new DC will occupy 650,000 sq ft (60,386 sq m) and is due to open in the first half of 2009. It will form part of Gazeley's Nova Park development at M1 J13 near Milton Keynes. As well as providing modern and flexible warehouse space, the development will include an extensive range of eco-friendly enhancements, supporting John Lewis's aim to improve the environment in which they trade.
Nigel Godfrey, Development Director, Gazeley, said: "It has taken Gazeley and its partner, Land Securities, ten years to bring Nova Park in Milton Keynes to fruition and we intend to create a sustainable flagship national distribution centre development that will inspire the whole industry.
"To have the opportunity to work with John Lewis on a first unit of 650,000 sq ft is a great start. The building will incorporate a range of design initiatives which will contribute to a projected saving of 66% of C02 emissions and a significant reduction in energy costs when compared with a standard unit. The building is being leased for 20 years and is scheduled for completion in June 2007. Gazeley will undertake a £7 million fit out of the building. A reserved matters planning application will be submitted in the next few days."
The DC will handle stock which is currently held in John Lewis's Stevenage warehouse. The Stevenage facility will remain as a storage depot for larger items of stock, and the company will invest £3.5 million to refit the warehouse for its new role and update its computer systems. As a result of this development, it is estimated that up to 60 redundancies may be made from the Stevenage warehouse during 2009. All Partners will be offered the opportunity to transfer to the new DC, and the Partnership will do all it can to keep this reduction in numbers as low as possible.
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