DHL will add US e-commerce distribution centers

As reported by Internet Retailer:

The Germany-based parcel delivery company will spend $137 million to build eight new fulfillment centers and make improvements to existing warehouses.

Germany-based Deutsche Post DHL Group will spend $137 million over the next few years to improve its U.S. and cross-border services for e-commerce, the company said Wednesday.

The funds, which will be invested through 2020, will be used to add eight distribution centers and improve two existing centers to better enable U.S. merchants to sell products internationally. Currently DHL eCommerce operates 18 distribution centers in the U.S. and works closely with the U.S. Postal Service.

DHL aims to capitalize on the global demand for products made in the U.S. and increase its e-commerce footprint in the U.S. “It is expected that 1 billion people will shop online and across borders by 2020 with the U.S. being the most popular origin for 25% of consumers worldwide,” says Charles Brewer, CEO of DHL eCommerce. Consumers in the Asia-Pacific region will generate much of the growth in e-commerce, and they buy goods online that are unavailable or cost too much in their home country, DHL says.

“With our investments we lay the foundation to expand our leading role in cross-border e-commerce logistics, serve our U.S. customers with the best possible infrastructure and solutions, and gain future market shares,” Brewer says.

DHL is the shipping carrier for 48 retailers in the Internet Retailer 2016 Top 1000, including Amazon.com Inc. (No. 1), GlassesUSA LLC (No. 362), Roots Canada Ltd. (No. 608) and eVitamins (No. 888).

DHL intends to open two new regional order fulfillment centers in 2017 to complement the ones it has in Los Angeles and Columbus, Ohio, plus a facility that will soon open in New Jersey.

The parcel delivery service also said Wednesday that is has opened a DHL Express service center in Chicago that handles international small parcels and shipments on pallets and in freight containers. It is DHL’s second such service center in the Chicago area.

DHL is forecasting 5% to 7% average annual growth in parcel volume through 2020, with e-commerce a key driver of that growth.

DHL recently added evening home deliveries—as late as 9 p.m.—of online orders in Germany. Consumers there can schedule their deliveries during two-hour windows. DHL also is working with Daimler AG to deliver e-commerce packages to consumers in several German cities who drive Daimler Smart cars. Packages will be placed in the trunks of consumers’ cars. A code will let a DHL courier 8open the vehicle once during a specified timeframe to deliver the goods or pick up any items being returned.

Ken Wood is the founder of LJM Consultants. LJM helps clients negotiate “Best in Class” UPS/FedEx agreements. LJM was recently named the “best parcel auditing company in America” and was also inducted into Inc. Magazine’s Top 500/5000 fastest growing companies in America for 2013. To learn how LJM Consultants can help your company get the parcel contract you deserve, call 631-844-9500 or email kenwood@myLJM.com.