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DHL Supply Chain expands fulfillment network to 3 cities

Global contract logistics services provider DHL Supply Chain on Wednesday said it has expanded its India fulfillment network (IFN) to three new cities including Delhi and Mumbai and has invested Rs 25 crore in capacity building through such facilities.

The company had launched its first fulfillment network in Bengaluru in September last year.

IFN is an omni-channel offering which will enable pan-India e-commerce order fulfillment with use-cases ranging from a single warehouse set-up to dynamically linked multiple micro-fulfilment centers allowing brands to choose a suitable strategy for fulfilling orders from their online shoppers, the company said.

The e-commerce market in India is expected to be USD 74.8 billion by the end of 2022 and projected to grow at around 35 per cent to USD 188 billion by 2025.

This shift has been facilitated by the movement of both buyers and sellers onto online channels, the company said in a release.

Relatedly, the expansion of e-commerce and third party logistics sectors is also fueling demand for new warehousing space, which is expected to increase by 160 per cent over last year, it noted.

DHL Supply Chain at present fulfills over 1,00,000 orders every day from its e-commerce operations in India, as per the company.

It has expanded its IFN to Ahmedabad, Mumbai, and Delhi, in line with the company’s focus to support growth of the domestic e-commerce ecosystem by expanding its infrastructure and services for the sector, it said.

Till date, the company has invested over Rs 25 crore in capacity building through IFN, it added.

“Building on the success of IFN in Bengaluru, brands and organizations can utilize our footprint across India to empower their omni-channel sales via a state-of-the-art plug and play model that will perform a vital role in boosting their overall business ,” said Vikas Anand, Managing Director, DHL Supply Chain, India.

Using IFN not only reduces delivery times, but also helps avoid long distance shipments across the country, thereby reducing CO2 emissions occurring from transport, he noted.

In line with this, IFN is designed to be a launch pad curated for easing the B2C fulfillment process. It is a 360-degree supply chain solution for enterprises across sectors, allowing them to manage their fulfillment operations seamlessly in a fully online marketplace scenario, the company said.

In addition to this, IFN also offers carrier agnostic transportation network linkages to brands and companies desiring to sell online, providing them with last mile delivery services to further bolster their independent models, it stated.

The company said its strategically located sites, in proximity to major urban centers, will cater to sectors like fashion, apparel, accessories, cosmetics, consumer electronics, among others.

According to DHL Supply Chain, companies have experienced a 20 per cent increase in business gained online, due to quicker fulfillment and deliveries.

IFN’s model enables merchants to directly sell their products across the whole country and be closer to online buyers, leveraging DHL Supply Chain’s network without having to make large investments in infrastructure and IT while providing end-to-end visibility of the operations, it emphasized. PTI IAS ANU ANU

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