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DHL Supply Chain launches fulfillment service for e-commerce, retail, and marketplace logistics operations

  • Service aims to enable agile implementation, operational flexibility, and next-day deliveries.
Warehouse located in Barueri (SP)
Warehouse located in Barueri (SP)
By: SiiLA News
06/16/2023

DHL Supply Chain, a global logistics company, is launching a new service in Brazil aimed at supporting the growth of logistics for online retailers, marketplaces, and industries. The service is called DHL Fulfillment Network (DFN), and it is a multiclient warehouse located in Barueri (SP) that provides access to DHL Supply Chain's e-commerce infrastructure in Brazil, consisting of 13 fulfillment centers, 6.5 thousand employees, 55 transportation hubs, and 800 vehicles.

According to the company, the DFN structure can provide next-day nationwide delivery, as well as offer agility and operational flexibility to all clients. This innovation is part of an investment of R$ 800 million (around 159 million dollars) announced by the company in Brazil until 2025.

"In summary, DFN allows companies to take advantage of DHL's transport and storage network in a flexible and tailored manner, providing better service levels and scalability. Furthermore, having distribution hubs in metropolitan regions, close to the consumer market, speeds up delivery and enhances the purchasing experience. Finally, as DFN is a global solution, it is possible to expand businesses to other countries from operations in Brazil", said Gabriela Guimarães, Vice President of E-commerce at DHL Supply Chain Brazil.

The new service is expected to benefit e-commerce players, retailers, marketplaces, and industries, as fast delivery is among the top priorities for Brazilians when shopping online. At the end of 2022, a study released by Kantar Ibope Media showed that among the factors that influence purchase decisions, the main ones are price (54%) and fast delivery (34%).

SiiLA Market Analytics platform has identified over 150,000 m² of DHL's occupancy in industrial properties across various cities in Brazil. In the Barueri region, where the company is launching its DFN service, DHL has leased space in two high-standard properties: Prologis Castelo 46 and CLI Itapevi - Centro Logístico.

Barueri is located within a 30 km radius from São Paulo's capital city and is considered a last-mile region for companies looking to establish last-mile operations in the state of São Paulo. According to SiiLA data, in the last year, other major companies have invested in leasing space in the region, including Mercado Livre and Shopee.

What DHL Fulfillment Network (DFN) offers:

According to DHL, clients will rely on a large range of activities by using the DFN, such as transportation in the first mile (from industry or importer to retailer), advanced multiclient warehouses in metropolitan areas, middle-mile transportation processes, and internal product handling. The system also allows for real-time tracking of product transit, right up to delivery of the goods to the final consumer.

DHL was founded in 1969 and is currently part of the German group Deutsche Post DHL. The group operates in more than 220 countries, with around 600,000 employees. In 2022, it generated revenues of more than €94 billion.

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