Hermes is predicting record volumes in Germany during this year’s peak season and is preparing with digital solutions, more workers, additional capacity, including a new depot in Bremen, as well as a temporary surcharge to cover higher costs.
The Hamburg-based company, which is owned by retail giant Otto Group, expects to handle around 120 million parcels in total during the 2020 holiday season, which would be about 20% more than last year. It could deliver around 12 million parcels in some weeks and up to 2.6 million parcels on peak days.
“We are expecting the biggest Christmas volumes ever with around 120 million shipments between October and December. We deliver around 10 million parcels a week. In some weeks, the peak value could even reach 12 million,” Olaf Schabirosky, CEO Hermes Germany, confirmed.
Digital tools for more efficiency, new Bremen depot for more sorting capacity
Despite these record volumes, the parcel operator sees itself well prepared for the Christmas season thanks to investments in logistics facilities and technology as well as intensive preparations at all levels.
“Digital solutions not only help us to increase our efficiency. They also help to support and relieve the delivery staff. The digitisation of parcel logistics therefore remains an essential goal for us. Tools such as our digital tour sorting, route planning via tablet, the use of hand scanners, for which we have developed a delivery app in seven different languages, and the digital notification card are decisive milestones,” Schabirosky emphasised.
In addition, the company has further expanded its multifunctional facilities. The sorting capacities at the high-tech logistics centres in Leipzig, at Münster-Osnabrück Airport and in Graben (near Augsburg) were significantly increased once again. The new distribution centre in Bremen can process 50,000 shipments every day.
"With these measures, we are increasing our sorting capacities by around 30% this year and can guarantee rapid distribution even with significant excess volumes – such as at Christmas time,” Schabirosky stressed.
3,500 additional workers, 3,900 additional vehicles to handle peak volumes
Moreover, Hermes has also expanded its capacity on the last-mile delivery. Overall, about 15,000 workers will be delivering Hermes parcels during this peak season. During spring, the company already deployed 1,500 additional delivery staff to handle the increased volumes. During the Christmas season, it will hire another 3,500 temporary workers to support especially the logistics centres and depots. Depending on availability and duration of employment, the workers will either have a fixed term contract or will be hired via temporary employment agencies.
In addition, Hermes is also increasing its transport capacity with around 3,900 additional vehicles. In long-distance and delivery traffic between the logistics centres, the company is expanding its fleet by around 450 swap bodies and semitrailer trucks.
Health safety is top priority
However, this year’s Christmas season is uncertain in view of the further development of the corona virus infections and their effects on consumer behaviour.
“The health protection of our employees, deliverers and customers continues to have top priority. So far, our preventive measures have been effective and we have hardly had any cases of illness. Accordingly, we will consistently continue and, if necessary, expand the protective measures taken so far, such as contactless delivery,” Schabirosky said.
Hermes is especially preparing for the peak delivery days which are expected to be December 2, 9 and 10. The Christmas parcel boom is mainly the result of the significant increase in online orders, but the number of gifts sent privately is also expected to increase.
Christmas peak surcharge of €0.25 per parcel for business customers
“This year, due to the expected record volumes, we need to cooperate closely with our clients from the retail sector. With volume forecasts that are as precise as possible, we can secure the necessary additional staff as well as vehicle and transport capacities in good time. In spring, we proved that we react quickly and guarantee a consistently high delivery quality even with extreme fluctuations in volumes. However, increasing capacity at short notice always goes hand in hand with higher costs, so that large additional volumes that clients hand over to us without planning can become more expensive,” Schabirosky added.
As it was already the case in 2018 and 2019, Hermes will introduce the so-called peak surcharge this year as well. The surcharge applies to business clients from October 1 to December 31, 2020, and amounts to €0.25 per parcel. It will apply, without exception, to all shipments, including returns. Private parcels will not be affected.
