DHL puts strong focus on e-commerce growth

The German forwarder discussed at a press conference in Chicago Wednesday its $137 million investment plan in the U.S. domestic and cross-border e-commerce market, along with its vast expansion in the “Windy City.”    Deutsche Post DHL Group discussed its $137 million investment plan in the U.S. domestic and cross-border e-commerce market, along with its expansion in the “Windy City” at a press conference in Chicago Wednesday.
   The planned expenditure of $137 million until the end of 2020 will be used to further expand fulfillment capabilities by adding eight distribution centers and enhancing two existing facilities in Los Angeles and Columbus, Ohio. In addition, the investment will be used to expand day definite deliveries and enhancements to support domestic and international services, DHL said.
   DHL eCommerce’s  first order fulfillment center in the U.S. opened in Columbus, Ohio last year, followed by the Los Angeles facility. The company will soon launch an order fulfillment center in New Jersey, followed by two other U.S. locations in 2017.
   “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,” DHL eCommerce CEO Charles Brewer said.
   Outside of the U.S., DHL eCommerce opened an order fulfillment center in Mexico City last November and has further expansion plans in Latin America in 2017. The company already has fulfillment centers in Germany, India and Hong Kong.
   Well-known companies DHL provides large dedicated fulfilment centers for include Toys “R” Us, Keurig and Nike, DHL Supply Chain Senior Vice President, Business Development for Retail Fred Takavitz said Wednesday at the press conference.
   Meanwhile, DHL has also put a lot of focus into strengthening its presence in Chicago.
   DHL Express recently opened a new $1.3 million service center facility in Chicago, due to heavy demand and international shipment growth from local businesses trading internationally, e-commerce shipping and major Illinois-based customers. Situated in south Chicago, the 38,000-square-foot facility can process over 2,500 shipments per hour, handling international small parcels, palletized and container freight.
   Just last year, DHL Global Forwarding opened a $35 million distribution center near the O’Hare International Airport.
   In addition, DHL launched a helicopter service last year in Chicago to provide early morning delivery services for the area’s financial and legal firms that require urgent document delivery. The service is offered from Chicago O’Hare to an area known as “The Loop (the second largest downtown business district in the U.S.).”
   DHL offers the same type of helicopter service in three other cities, including New York, Los Angeles and London, DHL Express Managing Director, U.S. Mid West Karsten Aufgebauer said at the press conference.