Insights from Natalie Frow, Managing Director of DHL Supply Chain

Most consumers think of the shopping experience as the final click online or the moment they walk out of a store with bags in hand. But what happens behind the scenes to ensure that products are on the shelf, or that parcels arrive at our doorsteps on time, is a feat of logistics. Few understand the complexity and challenges of this sorcery better than Natalie Frow, Managing Director of E-Commerce and Retail at DHL Supply Chain.

Frow’s career spans over a decade of experience in logistics, starting with Royal Mail and now leading key e-commerce and retail operations for DHL Supply Chain. Having worked across diverse sectors, Frow has an impressive record of driving change, improving operational efficiencies, and developing future-focused strategies for large-scale supply chains.

In a candid conversation, Frow discussed her career path, the changing nature of retail logistics, and the challenges she faces in the ever-evolving world of e-commerce.

From Healthcare to Royal Mail: A Journey into Logistics

Natalie Frow’s journey into logistics began in a somewhat unexpected place—healthcare. “It’s quite a convoluted route into retail,” she says, reflecting on her early career. Having spent several years in the healthcare industry, Frow’s career took a turn after she had her second child. Seeking a role that allowed her to be home with her family more often, she applied for a position at Royal Mail.

“I applied quite randomly for a job with the Royal Mail, and that was when I really started to enter the world of retail,” Frow recounts. Initially working in a corporate strategy role, she soon moved into operations. “I started in April, and then hit my first peak running,” she recalls, describing her introduction to Black Friday and the holiday season, which are some of the busiest periods for retail logistics.

It was at Royal Mail that Frow first gained a deep understanding of the retail supply chain. “A thousand vehicles of mail coming in and leaving every day… millions of parcels passing through,” she recalls of her time managing the National Distribution Centre. This facility processed 60% of the nation’s mail daily and served as a critical hub for large retail customers. Under her leadership, the center saw significant improvements: accidents were reduced by 71%, operational failures decreased by 95%, and year-on-year productivity grew by 12%.

These successes paved the way for Frow’s promotion to Delivery Operations Director in 2017, where she led Royal Mail’s largest delivery directorate outside of London, overseeing 5,500 employees and a budget of £300 million. “It was a crazy experience,” she admits, adding that the scale of operations and the intensity of retail peaks taught her valuable lessons about the intricacies of supply chain management. 

Making Her Mark at DHL Supply Chain

Frow’s accomplishments at Royal Mail caught the attention of DHL Supply Chain, and in 2019, she joined the company as Vice President of Home Delivery. “I was responsible for DHL’s large-item Home Delivery operation,” she says, highlighting her work in leading both dedicated and collaborative delivery networks for high-street giants such as Argos, Next, Homebase, and Ikea. 

“It only takes one influencer to go online, and all of a sudden, something that might have been a slow-moving product for weeks suddenly becomes your fastest-moving product.”

Overseeing two large-item warehouses and a network of 51 delivery outbases, Frow managed a team of 3,000 people who delivered more than 4 million items per year.

Under her leadership, DHL redefined the “final mile” of delivery, focusing on making it safer, more efficient, and environmentally conscious. By improving the last leg of the delivery journey, she made it a key differentiator for retailers looking to grow their businesses. These innovations were particularly important in an era where customer expectations for fast, reliable, and sustainable delivery were on the rise.

In January 2023, Frow became Managing Director of Retail at DHL Supply Chain, and in January 2024, she was promoted again to Managing Director of E-Commerce and Retail. In this role, she leads DHL’s retail logistics operations in the UK, overseeing a team of 13,000 employees and ensuring that both high-street retailers and e-commerce businesses can meet consumer demand. “My role is to set the future strategy and direction and make sure that we’re delivering against it,” she says.

The Rise of E-Commerce and Social Commerce

A major shift that Frow has witnessed over the years is the explosion of e-commerce and, more recently, social commerce. “The behavior of customers can be very different to traditional bricks-and-mortar retail,” she notes. Unlike traditional retail, where peak periods such as Christmas or back-to-school shopping are predictable, e-commerce is driven by far more fluid and often unpredictable patterns. “It only takes one influencer to go online, and all of a sudden, something that might have been a slow-moving product for weeks suddenly becomes your fastest-moving product,” Frow explains.

This unpredictability presents unique challenges for logistics providers. “If it was a slow-moving product, it’s probably at the back of your warehouse,” she points out. Being able to quickly retrieve and ship such products when demand suddenly spikes is critical for retailers to stay competitive.

DHL has had to adapt to these changes by developing more agile and responsive supply chain systems. “How we start to change the way that we understand how to run the inside of a warehouse to be really dynamic and agile in response to those changes is really important,” she says. This agility is a critical part of staying ahead in an increasingly competitive market.

Smart Warehousing and the Future of Logistics

One of the ways DHL has responded to the demands of modern retail is through the development of smart warehousing. “Smart warehousing means millions of things,” Frow explains, emphasizing that the term encompasses a broad range of technological innovations designed to improve efficiency. From simple process automation, such as digitizing paperwork, to more sophisticated AI-driven solutions that predict demand and optimize inventory, smart warehousing has transformed logistics.

At the forefront of this transformation are AI and robotics. “We’re seeing more predictive analytics being used to tell you what your fast-moving SKUs are going to be tomorrow,” Frow says. 

Automation and robotics are increasingly being integrated into DHL’s operations, from automated picking systems to wearable devices that allow employees to track inventory in real time.

“If you’ve got too much stock in your warehouse, it comes to a standstill.”

However, Frow cautions against adopting new technologies too quickly. “It’s easy to jump to the conclusion that you need an all-singing, all-dancing fixed automation, you don’t need any humans to do it, but for a lot of retailers, particularly the smaller e-commerce retailers, the volumes aren’t really big enough yet to do that,” she says. Instead, Frow advises a more measured approach, where retailers adopt modular solutions that can scale as their business grows. This allows them to remain competitive without overcommitting to expensive technologies too early.

Managing Disruption: A New Normal for Retailers

The retail industry has experienced significant disruptions in recent years, particularly during the COVID-19 pandemic. Frow believes that supply chain disruption has now become the “new normal” and that retailers must adapt to operating in this environment. “You almost can’t use the word disruption anymore because it’s constant—it just is what it is,” she says.

DHL’s global scale has been a major asset in managing these disruptions. “We’re able to leverage the other divisions within our business to support retailers,” Frow explains, pointing to DHL’s parcel, freight, and supply chain divisions as examples of how the company can offer end-to-end logistics solutions. By coordinating resources across different geographies and sectors, DHL helps its clients navigate the peaks and troughs of demand

One example Frow cites is how DHL manages warehouse capacity during periods of disruption. “If you’ve got too much stock in your warehouse, it comes to a standstill,” she says. To prevent this, DHL works with retailers to reallocate stock across its network, ensuring that warehouses maintain enough flexibility to continue operating efficiently even when faced with sudden changes in demand.

Sustainability: Balancing Cost with Environmental Responsibility

Sustainability has become a growing priority for retailers, and Frow is keenly aware of the pressure to deliver more environmentally responsible supply chain solutions. “There’s more focus on sustainability, but it’s still a really difficult one for retailers to find the right investment cases for,” she says. Balancing sustainability with cost-effectiveness is a significant challenge, particularly as consumers demand faster and more frequent deliveries.

DHL has been working to reduce the carbon footprint of its supply chain operations, from implementing more sustainable packaging solutions to minimizing carbon emissions in transport and warehousing. “Retailers are certainly spending a lot more time and effort trying to solve some of these challenges,” Frow says, and DHL has been an active partner in helping them achieve their sustainability goals.

The Human Side of Logistics: Collaboration and People Management

While technology plays an increasingly important role in logistics, Frow emphasizes that the industry is still fundamentally a people business. “Managing lots of people—it’s an incredibly people-intensive process,” she says. From warehouse workers to delivery drivers, the success of any supply chain depends on the coordination of thousands of individuals working together to meet consumer expectations.

At DHL, Frow is focused on developing the next generation of leaders and ensuring that her team has the skills they need to succeed in an increasingly digital world. “The warehouse of the future will look different, it will be more automated, it will be more digitised,” she says. Investing in training and development programs that help employees adapt to new technologies while also fostering a culture of collaboration and innovation will be key.

Looking to the Future

As she looks to the future, Frow is excited about the potential for continued innovation in logistics. “Retail will become more and more unpredictable, and we need to be prepared for that,” she says. The advancement of technology, particularly AI and automation, will continue to drive change, but Frow is equally focused on the human side of logistics—developing a workforce that is agile, innovative, and capable of managing the complexities of modern retail.

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