DHL announces $137m investment in US e-commerce

Deutsche Post DHL Group announced a $137m investment plan for the US domestic and cross-border e-commerce market. The announcement was made in conjunction with the DHL eCommerce and DHL Supply Chain divisions further implementing regionalised fulfilment centres in Los Angeles, California; Columbus, Ohio; and New Jersey, significantly increasing the companies’ order fulfilment capabilities in North America collaboratively.

“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 US being the most popular origin for 25% of consumers worldwide. With our investments we lay the foundation to expand our leading role in cross-border e-commerce logistics, serve our US customers with the best possible infrastructure and solutions, and gain future market shares,” said Charles Brewer, CEO DHL eCommerce.

In line with Deutsche Post DHL Group’s Strategy 2020, the company has made and will continue to make significant investments. After the first order fulfilment centres opened in Columbus and Los Angeles during 2015, DHL eCommerce plans to establish further regional centres of this kind in New Jersey and other locations in 2017. Additionally DHL Express has opened of a $1.3m service centre facility in Chicago to meet heavy demand from e-commerce customers.

The planned expenditure of $137m until the end of 2020 will be used for the further expansion of fulfilment capabilities by adding eight distribution centres and enhancing the existing facilities in Los Angeles and Columbus. The investment will also expand day definite deliveries and enhancements to support domestic and international services.

DHL eCommerce 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. In the US, DHL eCommerce operates 18 distribution centres and is one of the largest partners of domestic provider USPS.

Source: Deutsche Post DHL Group