DHL Supply Chain commits EUR350 million in Southeast Asia to help strengthen customers’ supply chain resiliency
- Written by DHL
- Part of a series of strategic investments announced over the past year, already adding up to EUR1.35 billion globally
- More than 400,000 square meters of warehouse space and additional 3,000 job opportunities will be created across the region to meet growing supply chain demand
- Next to India and Latin America, ASEAN is a main beneficiary for omnisourcing strategies with lower cost environment and effective trade policies
(From L to R) Mario Lorenz (Country Managing Director, DHL Supply Chain Malaysia), Andries Retief (CEO, DHL Supply Chain Southeast Asia), Oscar de Bok (CEO, DHL Supply Chain), Javier Bilbao (CEO, DHL Supply Chain Asia Pacific) at Penang Logistics Hub 4
"There is an incredible opportunity for businesses in Southeast Asia to strengthen supply chain resiliency. Companies are looking at diversifying their supply chains. Southeast Asia, with its efficient work environment and effective trade agreements such as the China-ASEAN FTA, stands to benefit the most. Our multi-market investment of EUR350 million in this region complements our global investment strategy. These are strategic investments we take - despite the generally softer market environment – because we invest in the future growth of our business and strongly believe in the strategic expansion and diversification of our regional businesses. This puts us in a prime position to support our customers' growth and omnisourcing strategy in the long term," said Oscar de Bok, CEO, DHL Supply Chain.DHL Supply Chain expanding capacity and future-proofing logistics centers With this investment, DHL Supply Chain will increase its current 1.6 million square meters of warehouse space in Southeast Asia by 25 percent, or 400,000 square meters. Highlights of this investment include:
- 40,000 square meters DHL Maheswara Green Logistics facility in West Java, Indonesia
- 18,000 square meters Penang Logistics Hub 5 (PLH5) in Malaysia
- 50,000 square meters built-to-suit facility in the Philippines
- 60,000 square meters of space acquired from a local business in Singapore
DHL Supply Chain will continue to develop its Warehouse Management Systems (WMS) while introducing other warehouse technology in selected markets such as auto-stores, automated storage and retrieval systems (ASRS) for pallets and large goods, and automated guided vehicles (AGVs). These digitalization initiatives also allow employees to upskill themselves in such implementations.
Investing in talent and green supply chains
DHL Supply Chain reinforces its commitment to people development as it seeks to create over 3,000 job opportunities across Southeast Asia by 2024. This forms part of a broader strategy to nurture talent to support new growth areas and meet evolving customer demands in automation, digital analytics, electric vehicle (EV) handling, reverse logistics, and solution design.
In support of DHL Group's roadmap to have climate-neutral logistics by 2030, and also customers' Scope 3 emissions reduction targets, DHL Supply Chain plans to double its EV fleet in Southeast Asia over the next five years.
DHL Supply Chain is also committed to having carbon-neutral facilities for all new buildings. Today, 100 percent of DHL Supply Chain's facilities in Singapore and Malaysia have achieved carbon neutrality, showcasing its leadership in championing sustainability in the supply chain sector.
For more information, visit here[2].
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References
- ^ Media OutReach (www.media-outreach.com)
- ^ here (app.supplychain.dhl.com)
Authors: DHL
Read more https://www.media-outreach.com/news/malaysia/2023/10/17/253465/
