DHL eCommerce Solutions set to invest more than $300M into its U.S-based operations

Earlier this week, DHL eCommerce Solutions, a subsidiary of global logistics services provider, Deutsche Post DHL Group, said it is investing more than $300 million into its United States-based operations over the next five years. Company officials said that this investment will up the square footage of the DHL eCommerce Solutions network by 70%, to more than 3 million square-feet.

What’s more, they said that this investment will also include more automation-based services in its U.S. distribution center facilities, as well as make enhancements to its IT operating system platform. And, due to still-strong global e-commerce activity, the company said it is making investments in dedicated export gateways for international shipments in the following locations:

• Carteret, New Jersey, which will open in September 2021 in a new permanent 50,000 sq. ft. building that will include a TSA cargo screening area;
• Franklin Park, Illinois, in a 69,000 square-foot international export gateway, which opened in July, and also includes a TSA screening area, with the company continuing to process domestic parcel shipments from its other Illinois-based location in Melrose Park; and
• Whittier California, in its Whittier distribution center, which opened at the end of 2020 and expanded in August 2021, with the location extended by 100,000 square-feet next door to its current location, for international package and parcel processing

DHL eCommerce Solutions Americas CEO Lee Spratt told LM that this more than $300 million investment has been planned since mid-2020.

“These investments will provide more tracking events for better visibility of shipment progress and estimated day of delivery, in addition to higher levels of reliability and certainty for on-time delivery,” said Spratt. “Also, allowing DHL eCommerce Solutions to lower costs, due to higher levels of automation, especially later in the equipment’s lifecycle, as the cost of labor will inevitably increase. The investment also provides customers with simpler integration with DHL to begin shipping.”

As for what this investment provides, or offers, for customers, that may have been missing, or lacking, Spratt explained that the most significant benefit of the investment is that it will provide enhancements to DHL eCommerce Solutions’ tracking and thus greater certainty for on-time delivery.

Peak Season update: When asked what DHL eCommerce Solutions’ expectations for the 2021 Peak Season are, Spratt said that DHL eCommerce Solutions, we have been preparing for the 2021 peak season since January 2021.   

“Labor in the U.S. market has been the greatest challenge in 2021,” he said. “As a result, we have been hiring all year and taking extraordinary measures to be the Employer of Choice in each market where we have a presence. In addition to more permanent square footage, we have added nine temporary facilities just for peak season and secured all necessary transportation. We have been working very diligently to match our volume perfectly with our personnel, transport and infrastructure.”