Deutsche Post DHL announces $137m investment plan for US e-commerce market
Deutsche Post DHL Group has announced a $137m investment plan for the US domestic and cross-border e-commerce market. In a statement sent to Post&Parcel today (28 July), Deutsche Post DHL said that DHL eCommerce will be making “substantial investments” help its US customers expand their cross border business. At the same time, DHL eCommerce and DHL Supply Chain will be both be “significantly increasing” their order fulfilment capabilities in North America.
Commenting on the plans, Charles Brewer, CEO DHL eCommerce, said: “There is barely any other industry that provides such a promising outlook than the e-commerce business. It is expected that one billion people will shop online and across borders by 2020 with the U.S. being the most popular origin for 25 percent of consumers worldwide. 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.”
DHL eCommerce is looking to profit from these developments and to increase its e-commerce footprint in the United States. In line with the Strategy 2020, the Group has made and will continue to make significant investments. After the first order fulfillment center opened in Columbus, Ohio, last year and followed by a facility in Los Angeles,
Additionally, DHL Express has opened a new, $1.3m service centre facility in Chicago to meet heavy demand from e-commerce customers. And about a year, also DHL Global Forwarding opened up a $35m distribution centre in Chicago. All of these infrastructural engagements will provide merchants with the opportunity to place inventory closer to consumers in order to speed-up delivery.
Deutsche Post DHL said that the planned expenditure of $137m until the end of 2020 will be used for the further expansion of fulfilment capabilities by adding eight distribution centers and enhancing two existing facilities in Los Angeles and Columbus, Ohio. The new investment will also expand day definite deliveries and enhancements to support domestic and international services.
The company currently operates 20 distribution centres in North America, including four international gateways and one centre each in Toronto and Mexico City. Further facilities in Latin America are to follow next year.
