DHL Supply Chain commits EUR 218m to develop logistics infrastructure in China
- Latest facility recently opened in Chengdu to support growth in Western region
- 6 additional state-of-the-art logistics facilities to be constructed by 2020
- A key element to DHL Supply Chain's growth plans in Asia-Pacific
The six additional state-of-the-art logistics facilities, scheduled for completion by 2020, are Guangzhou, Hangzhou, Wuhan, Shenyang, Shenzhen and Shanghai Waigaoqiao Free Trade Zone.
DHL Supply Chain (DSC) today announced it will commit a further EUR 113 million in China as its strategy gains traction. This is on the back of EUR 105 million that was committed in 2013, bringing the total committed to EUR 218 million. The funds will support the expansion of its network across China and in particular, six additional state-of-the-art logistics facilities scheduled for completion by 2020. The confirmed locations are Guangzhou, Hangzhou, Wuhan, Shenyang, Shenzhen and Shanghai Waigaoqiao Free Trade Zone.
Oscar de Bok, Chief Executive Officer of DHL Supply Chain Asia Pacific, said: "DHL Supply Chain is on a strong growth path in Asia Pacific. China is a key driver and our strategy is gaining traction. Regardless of location, our customers expect consistency of service delivery and operation execution. By working closely with our customers who provide us with their demand forecast, we have a clear roadmap of the locations we need to be in; as well as the level of the services required. In China alone, DSC will expand its warehouse facilities and transport capacities by 50% over the next three years."
Recently opened Chengdu Logistics Center facility
DSC recently opened its state-of-the art Chengdu Logistics Center facility in western China. Located in Xindu district, the Chengdu Logistics Center is a key strategic investment by DHL Supply Chain to support continued economic growth in the western region. The 54,000 sqm center operates scalable, repeatable solutions for multiple customers across a broad spectrum of industries including technology, consumer and healthcare; and delivers significant synergy benefits in terms of cost, quality and performance. The new facility also acts as a multi-user cross-dock to support the effective and efficient transportation of products across the Western region.
Zou Yin, Managing Director of DHL Supply Chain China said, "Helping companies navigate China's vast geography and varied terrain to deliver their goods safely, efficiently and cost effectively has been the holy grail of the logistics industry. With the continued build out of our pan-China infrastructure, technology investments and extensive transport network, DHL Supply Chain is better positioned to contribute towards China's goal of reducing the cost of logistics and reinforce the competitiveness of Chinese businesses. This also enables us service our multinational and Chinese customer better."
New facilities have been introduced in the Tier 1 cities of Beijing, Shanghai, Guangzhou and Shenzhen, while the roll-out of DHL Supply Chain cross-docks has been accelerated across China to allow the transfer of cargo with minimal warehousing.
Chinese companies are going global
The world is witnessing the nascent trend of Chinese companies going global. For many, a major challenge in the globalization of their business operations is the creation of a truly lean global supply chain. DSC understands the extent of development required in Asia Pacific to support a lean global supply chain and has invested EUR 500m in the region over the last two years. This year alone, DSC added 12 new facilities, equivalent to 436,000 sqm of warehousing space and a further five more amounting to an additional 110,000 sqm are planned to open in 2015.
Mr de Bok added: "Our global scale combined with our experience across all industry sectors, have enabled us to develop successful supply chain solutions for customers of all sizes, including many of the world's leading brands and corporations. Here in the Asia Pacific, India, Indonesia, Thailand and China will drive our growth, supported by demand in the established markets of Australia and Japan. We work closely with all our customers to create sustainable competitive advantage for their businesses and we will continue to partner our Chinese customers supporting their growth and expansion by growing business globally."